XRP Price Falls to $2.09 as On-Chain Activity Declines and Spot Trading Cools

XRP slid 2.57% to $2.09 on Tuesday, deepening its weekly loss to nearly 8% as traders eye weakening momentum across the altcoin space. Despite a modest 1.5% monthly gain, XRP is struggling to hold above key support levels as investor attention turns to broader macroeconomic catalysts—including this week’s U.S. Federal Reserve decision.

A mixed bag of data from Ripple’s first quarter XRP Markets Report points to the token’s current tension. While spot trading volumes for XRP surged in the first quarter—averaging $3.2 billion daily and briefly topping $16 billion—on-chain activity on the XRP Ledger (XRPL) declined. Transactions fell more than 37% quarter-over-quarter, while wallet creations dropped 40%. 

Even decentralized exchange activity on XRPL was down nearly 17%, with monthly DEX volume stuck around just $3.3 million, according to DefiLlama.

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The dichotomy underlines growing institutional interest in XRP—evidenced by strong inflows into XRP-based investment products and Franklin Templeton’s pending ETF application—even as day-to-day user activity cools. Ripple’s $1.25 billion acquisition of Hidden Road is expected to improve XRPL’s on-chain utility, particularly for institutional use cases.

Meanwhile, Sentora, a newly formed institutional DeFi firm backed by Ripple and Flare, announced $25 million in Series A funding on Tuesday. The venture is a merger between IntoTheBlock and Trident Digital and aims to offer risk-managed, compliant access to DeFi yield products tailored for funds, treasuries, and large allocators.

“Through our strategic partnerships with industry leaders, we are developing a suite of products that address the key blockers preventing institutional adoption of DeFi,” Sentora CEO Anthony DeMartino said to The Block.

Despite the bullish signals, retail enthusiasm is muted. Daily volume has plummeted from December’s $60 billion peak to under $8 billion. XRP’s price has also tracked closely with other large-cap altcoins, with CoinDesk reporting that both ADA and XRP led losses among majors Tuesday ahead of the Fed’s “coin-flip” rate decision.

However, sentiment around an eventual XRP ETF approval remains strong. Prediction platform Polymarket still shows a 76% chance of a spot XRP ETF being approved by the end of 2025 — a sign that institutional demand could eventually outweigh near-term retail fatigue.

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