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XRP price has crashed by nearly 50% from its highest point this year despite it having some of the key milestones. The Ripple token was trading at $1.8650 today, down from the year-to-date high of $3.6700.
This crash has led to a major wipeout as the market capitalization moved from over $190 billion to the current $116 billion. So, why did the XRP Price plunge this year?
XRP Price Crashed Despite the Rising XRP ETF Approval and Inflows
The Ripple price dived even as the Securities and Exchange Commission (SEC) approved several XRP ETFs. It first allowed the REX-Osprey XRP ETF, which is based on the Investment Company Act of 1940.
Data shows that the XRPR ETF has now accumulated over $90 million in assets. Also, the agency approved the Teucrium XRP 2x ETF (XXRP), which has nearly $200 million in assets.
Most importantly, the SEC then approved the mainstream XRP ETFs, which have been received well by market participants. According to SoSoValue data, these funds have experienced inflows since their launch.
They now have over $1 billion in inflows and $1.24 billion in assets, a figure that will likely accelerate. Most importantly, these inflows are happening at a faster rate than Ethereum, whose funds have accumulated over $12 billion in inflows.
RLUSD Growth Accelerated
The XRP price also plunged even as Ripple USD (RLUSD) continued its strong growth, establishing Ripple as a major player in the industry.
Data compiled by Artemis shows that the stablecoin has accumulated over $1.4 billion in supply, a notable amount since its launch a year ago.
The RLUSD supply growth has been robust, coinciding with its increasing usage. Data show that the adjusted transaction volume exceeded $3 billion in the last 30 days. Similarly, the number of transactions rose to over 345k.
The RLUSD stablecoin will likely continue rising in the coming years, especially after Donald Trump signed the GENIUS Act into law. This law established the legal parameters that stablecoins used in the US will need to have.
SEC vs Ripple Labs Case Ended
The XRP price also crashed even after the Securities and Exchange Commission, led by Paul Atkins, voted to end the long-running case against Ripple Labs.
This lawsuit alleged that Ripple Labs illegally raised $1.3 billion a decade ago. It claimed that the capital raise was a sale of unregistered securities.
The end of this lawsuit was significant as it enabled the company to begin negotiating with companies that had previously been hesitant to deal with it during its investigation. It also saved it billions of dollars in fines and removed one of its uncertainties.
Other Important Ripple News
XRP price also plunged after the developers made some notable announcements. For example, Ripple Labs made four acquisitions, which it aimed at growing its ecosystem.
The company acquired Hidden Road, a prime brokerage company that is now known as Ripple Prime. It also acquired GTreasury, a company that offers custodial services to other firms.
Additionally, the company bought Rail and Palisade, two companies that are active in the stablecoin industry.
Another significant Ripple news was that the Office of the Comptroller of the Currency (OCC) agreed to grant Ripple a banking charter.
Why XRP Price Crashed This Year
The primary reason for the XRP price’s decline by ~50% from its peak in 2025 is the close correlation in the cryptocurrency market. It declined as Bitcoin and other altcoins declined, which brought the market capitalization from over $4.2 trillion to $2.8 trillion today.
Second, the decline accelerated after the huge liquidation event that happened earlier in October this year. This liquidation event led to sustained market fear, with the futures open interest falling to its lowest level in months.
Third, as the chart above illustrates, technical factors contributed to the decline. It remained below all moving averages and the Supertrend indicators, a sign that buyers remained on the sidelines.
