The recent crypto woes have pushed bitcoin ether and major CoinDesk indices down to the point where they post muted or negative returns over the past 365 days – an enviable position that only XRP has managed to avoid.
As of Sunday, payments-focused XRP was up 89% over the past 365 days, significantly outpacing the modest 3.6% gains of both bitcoin and the CoinDesk 20 (CD20) index, according to CoinDesk data.
The CoinDesk 5 index (CD5) rose just over 2%, making it the only other gainer, while ether saw a flat 2% gain. Meanwhile, rivals like solana and suffered heavy losses, both by more than 36%. The CoinDesk Meme Index posted the worst performance, down 78%, reflecting the heavy toll taken by the riskiest corners of the crypto market.
XRP is also the only major token to boast a positive year-to-date gain.
What makes XRP’s outperformance more impressive is that its price is down 36% from the all-time high of over $3.6 recorded four months ago. BTC, the leading cryptocurrency by market capitalization, has also fallen 24% since hitting a peak above $126,000 on October 8.
Several catalysts, including regulatory developments, have contributed to XRP’s outperformance.
The resolution of the SEC case against Ripple, the fintech firm that uses XRP to facilitate cross-border transactions, was a major milestone that removed a significant legal barrier that had clouded XRP’s adoption prospects in the US. This paved the way for increased institutional participation and is seen as a critical turning point for XRP’s mainstream adoption.
On the technology front, Ripple’s rollout of the XRPL EVM sidechain and Ripple’s RLUSD stablecoin, which has reached a $1 billion market cap within a year of launching in December 2024, have expanded XRP’s use case beyond payments and into DeFi applications.
Ripple’s strategic partnerships in key regions such as the Middle East and its US banking license application have further strengthened XRP’s appeal, as evidenced by the debut of Canary Capital’s spot XRP exchange-traded fund (ETF) in the US last week. The fund debuted with the highest day-1 volume of any ETF this year.
Leading industry observers are confident that XRP ETFs will be highly successful in attracting demand from institutional investors.
“I think it would be a huge, huge product. There’s a ton of interest in XRP,” asset manager Bitwise’s CEO Hunter Horsley told CoinDesk TV. “There’s a lot of energy, enthusiasm and interest around it,”
Horsley explained that over $100 trillion is currently sitting on traditional financial rails, and more of that is migrating to the chain. An ETF is often the first time many of these assets can gain exposure to a new asset. “If investors have the opportunity to trade and gain exposure to XRP, it will be a very useful and in-demand product,” he said.
Outperformance at cost price
There is an old saying: there is no such thing as a free lunch, and this certainly applies to XRP.
While the token has outperformed several major cryptocurrencies, it has also been among the most volatile, according to CoinDesk data.
XRP’s annual 365-day volatility stands at 91% compared to bitcoin’s 44%. The only assets with higher volatility are the CoinDesk Meme Index at 115.85% and cardano at 100.55%.
However, with increasing institutional interest and potential ETF approvals on the horizon, XRP’s volatility may ease as it attracts more stable, long-term capital.
