**XRP Drops 48% Despite Legal Victory, ETF Inflows, and Ripple’s $2.7B Expansion**
Key Takeaways:
- XRP has fallen 48% since its July 2025 peak, despite winning its SEC lawsuit.
- Ripple executed $2.7 billion in acquisitions and launched ETF products in late 2025.
- Delays in regulatory clarity and ETF approvals undermined bullish momentum.
New York, NY — XRP is trending after a surprising downturn in what was supposed to be its breakout year. Despite multiple bullish catalysts—including a landmark legal win over the SEC, over $1 billion in ETF inflows, and $2.7 billion in Ripple-led acquisitions—the cryptocurrency has crashed 48% from its July 2025 high of $3.65.
Market Gains Undone by Delays, Timing, and Fatigue
XRP’s price plunge to around $1.88 by December is raising eyebrows across the financial and crypto sectors. The drop comes in stark contrast to August’s post-lawsuit rally, which briefly sent the token up 8% in a single day amid a 146% rise in trading volume. Ripple’s victory over the SEC—finalized on August 22 after both parties dropped pending appeals—had settled a multiyear case involving XRP’s classification as a security.
In November, institutional attention surged, with spot XRP ETFs launching and the Canary XRP ETF posting $58 million in volume on day one. By mid-December, these funds amassed $1.25 billion in assets during a record 30-day inflow streak with no single day of net outflows. However, these milestones failed to lift market sentiment or spark sustained price growth.
Delayed Clarity and Regulatory Bottlenecks Take Their Toll
Despite Ripple’s proactive expansion—including acquiring Hidden Road and GTreasury for a combined $2.25 billion—key opportunities were missed due to delayed infrastructure and legislative hurdles. The CLARITY Act, which would provide definitive crypto regulations for banks, remains stuck in Congress. Ripple CEO Brad Garlinghouse criticized the SEC for what he called a “war of legal terror,” causing an estimated $15 billion in XRP investor losses.
Additional frustration came from ETF timing. By the time ETFs launched, momentum had already waned due to the prior legal limbo and a U.S. government shutdown. Investors were also disappointed with RLUSD, Ripple’s dollar-backed stablecoin, which grew to $1.3 billion but captured under 0.7% of the stablecoin market months after its launch.
Institutional DeFi and Legislative Hopes Could Determine 2026
Looking ahead, Ripple plans to roll out native lending on the XRP Ledger through XRPL Version 3.0.0 in 2026—transitioning beyond payment rails into institutional-grade DeFi. Garlinghouse expects the stalled CLARITY Act to pass in the first half of 2026, potentially firestarting new market activity. However, analysts warn it may trigger a typical “buy-the-rumor, sell-the-news” reaction unless accompanied by broader adoption and developer interest.
So despite XRP’s high-profile wins in 2025, including partnerships with BNY Mellon and Mastercard, the cryptocurrency still faces headwinds—namely slow regulatory movement, market fatigue, and lingering investor skepticism. The next six months could make or break Ripple’s long-awaited institutional pivot.
Frequently Asked Questions
Q: Why is XRP trending?
A: XRP is in the spotlight after crashing 48% in 2025 despite winning its SEC lawsuit, launching ETFs, and executing multi-billion-dollar acquisitions.
Q: What happens next?
A: Ripple aims to launch institutional DeFi services in 2026 and expects the CLARITY Act to pass, potentially sparking renewed interest in XRP.
#XRP #Ripple #CryptoNews #SEC #ETF
