In Q1 2025, the latest report from Messari indicated a remarkable growth in XRP's (XRP) market capitalization compared to Bitcoin (BTC), Ethereum (ETH), and Solana (SOL), which experienced a decline during the same period.
Notably, all metrics related to the XRPL network exhibited growth for the second consecutive quarter. The most significant increase was seen in the average daily active addresses, which surged by 142%, underscoring the ongoing expansion and acceptance of the XRP Ledger.
During Q1 2025, XRP's market capitalization increased by 1.9% from the previous quarter, reaching $121.6 billion. In contrast, the combined market capitalization of BTC, ETH, and SOL dropped by 22%. XRP's circulating market cap also saw a 252% year-over-year increase. Despite the rise in market cap, the price of XRP only grew by 0.5%, mainly due to a 1.4% rise in its circulating supply.
Moreover, all network metrics of XRP experienced significant enhancement. The report emphasized that in Q1, various measured network metrics expanded for the second consecutive quarter, a rare occurrence since Messari began covering the XRPL back in Q1 2023.
The rise in average daily active addresses to 134,600, a 142% surge, indicated heightened engagement from both new and existing users. Additionally, the total new addresses increased by 210% compared to Q1 2024, reaching 568,300.
Furthermore, the report highlighted that active receiver addresses consistently exceeded senders for four consecutive quarters. Daily receivers spiked by 168% to 127,800, outpacing the 14.5% increase in daily senders, which reached 34,300. This trend suggests increased token distribution to formerly inactive wallets, a dynamic that could result from airdrops.
Overall, the XRPL network displayed a positive performance in Q1 2025, with notable increases in active nodes, daily transactions, and payment transactions. Additionally, the network witnessed the launch of the XRPL EVM Sidechain testnet on March 31, aiming to introduce Ethereum Virtual Machine compatibility to the XRP Ledger, with plans for a mainnet launch in Q2 2025.
Ripple, the company behind XRP, continued to expand its reach through strategic initiatives. Notably, the acquisition of Hidden Road for $1.25 billion on April 8 positioned Ripple as the first crypto firm to own a prime brokerage platform. This move further pushes the adoption of XRPL and Ripple USD (RLUSD). Hidden Road's integration of XRPL for post-trade operations and adoption of Ripple's stablecoin, RLUSD, as collateral, underscores the company's growth prospects.