1. Introduction to XRP and Ripple

XRP is a digital asset designed by Ripple for its blockchain-based payment network. Ripple was founded in 2012 by Christian Larsen, Jed McCaleb, and others, with the goal of creating a secure and fast cross-border payment system. In September 2012, Larsen and the original initiators of the XRPL ledger project co-founded Ripple and launched the digital currency named XRP. Unlike Bitcoin and other cryptocurrencies, XRP is not mined, but was pre-mined at the ledger’s launch with a total supply of 100 billion tokens. About 58.4 billion are in circulation, and the remainder is held and gradually released by Ripple.

The underlying network of XRP is called XRP Ledger (XRPL), which uses a unique federated consensus mechanism to validate transactions. XRPL does not require traditional miners or proof-of-work, but relies on a group of independent but trusted validator nodes, typically operated by Ripple and its partners, to sort and verify transactions. The network can complete a transaction confirmation in 3–5 seconds and theoretically supports thousands of transactions per second. According to official information, XRPL’s transaction fee is extremely low (about $0.0002 per transaction) and is designed to be carbon-neutral and highly efficient. Therefore, XRPL shows significant advantages in speed, cost, throughput, and green performance compared to traditional public blockchains like Bitcoin.

Initially, Ripple granted itself 80 billion XRP tokens to build the RippleNet network and conduct business operations. RippleNet is a cross-border payment platform provided by Ripple for banks and payment service providers, including solutions such as xCurrent and xRapid (now called ODL). XRP is mainly used as a bridge asset for cross-border liquidity in the xRapid/ODL product.

Overall, XRPL and XRP’s main current application areas include: cross-border payments, asset tokenization, decentralized finance (DeFi), central bank digital currency (CBDC) pilots, and stablecoin issuance. For example, developers can issue stablecoins or security tokens on XRPL and trade them using the built-in decentralized exchange (DEX); banks and remittance companies can use the ODL service to instantly settle between different fiat currencies using XRP; and even some central banks are testing digital currency issuance on XRPL. In short, XRP and XRPL form a high-performance financial infrastructure platform that supports various innovative business scenarios.

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2. Historical Prices and Application Development

Since its launch, XRP has seen highly volatile price movements. During the 2017–2018 bull market, XRP hit an all-time high of around $3.84 on January 4, 2018. Due to the global cryptocurrency market crash in 2018, XRP’s price fell sharply and further declined around 2020. On December 22, 2020, shortly after the SEC filed a lawsuit, XRP’s price dropped more than 50% in a few days, and many exchanges (such as Coinbase) suspended or delisted XRP trading. The SEC’s complaint stated that Ripple raised about $1.3 billion by selling XRP since 2013, allegedly conducting an unregistered securities offering. This news shook market confidence and temporarily drove XRP’s price down to about $0.20.

As the crypto market gradually recovered during 2019–2020, XRP’s price also began a choppy upward trend. The real turning point came in 2023. On July 13, 2023, a federal judge in New York made a landmark partial ruling: XRP itself was not considered a security, and XRP sales on secondary markets like exchanges did not constitute securities offerings either. This was a major positive for Ripple, pushing XRP’s price from around $0.47 to near $0.79. Although the SEC appealed the decision, the appeal was rejected, and the question of whether two Ripple executives would bear personal liability was postponed to 2024. This series of legal developments boosted market sentiment.

In general, XRP’s price history went through a “peak—valley—recovery” trajectory: at the end of 2017, it peaked at about $3.84; from 2018 to 2020, market corrections and regulatory risks pushed it below $0.30; since 2021, with market recovery and legal progress, XRP’s uptrend gradually emerged; and after the July 2023 ruling, the price surged. For example, Binance analysts noted that XRP’s price jumped from around $1.10 in November 2024 to $2.20 in December. In early 2025, optimism about regulatory outcomes pushed XRP close to previous highs. As of April 2025, XRP trades steadily around $2.20–2.30 per token.

In terms of application, the XRP ecosystem continues to expand. In addition to serving as a payment bridge, XRPL’s features are becoming richer. For example, some projects are using XRPL’s decentralized exchange (DEX) to issue and trade stablecoins, financial derivatives, and other assets; XRPL is about to support NFT standards and more DeFi applications. Ripple itself is also increasing technical investment: in June 2024, it announced the launch of a U.S. dollar stablecoin “Ripple USD (RLUSD),” 100% backed by USD assets, and plans to issue it on both XRPL and Ethereum. Ripple executives said RLUSD and XRP will be “complementary” in cross-border payments. Moreover, many institutions including the e-commerce platform Mercari have begun supporting XRP transactions, expanding its usage and circulation. For instance, Japan’s largest second-hand e-commerce platform Mercari’s crypto platform Mercoin has launched XRP trading, providing access to XRP for its 20 million monthly active users.

3. Overview and Progress of the SEC Lawsuit

Since the SEC filed a lawsuit against Ripple in December 2020, the case has become one of the most closely watched topics surrounding XRP. The SEC accused Ripple and its executives of raising $1.3 billion through XRP sales, violating securities laws, and claimed that XRP constituted an investment contract security. After the lawsuit was filed in December 2020, the price of XRP immediately plummeted and it was delisted by many exchanges; Ripple strongly fought back, accusing the SEC of failing to clarify regulatory boundaries for crypto assets.

In the following years, the lawsuit entered the discovery and summary judgment phases. In July 2023, U.S. federal judge Analisa Torres delivered a split ruling: she ruled that XRP itself and XRP sold through programmatic sales on public exchanges did not constitute securities, but that Ripple’s direct sales of XRP to institutional investors with promises of returns did constitute securities issuance. This ruling was a major victory for Ripple, particularly in clarifying that secondary market XRP transactions are not subject to securities regulation, prompting a rise in XRP’s price. The SEC was dissatisfied with the ruling and attempted to stay the decision and appeal, but the court rejected the motion.

Entering 2024, both parties gradually considered a settlement. In March 2025, Ripple reached a principled agreement with the SEC and applied to the court to halt the lawsuit: Ripple agreed to pay a $50 million fine (a significant reduction from the SEC’s original $125 million demand), but did not admit to any wrongdoing; the SEC formally withdrew its appeal and accepted the court’s earlier ruling that secondary market XRP transactions do not constitute securities issuance. Ripple CEO Garlinghouse and Chief Legal Officer Alderoty both stated on social media that the decision brought Ripple “great certainty” and was a milestone. Following the announcement, market sentiment for XRP surged, with prices rising by about 9–10% within the first hour, briefly exceeding $2.40.

In summary, the more than four-year-long “Ripple vs. SEC” lawsuit has essentially come to a close. The latest court documents show that the U.S. Court of Appeals has approved the joint application from both parties, officially halting the SEC’s appeal. Once formal case closure procedures are completed, Ripple and the SEC’s legal dispute will be completely resolved, which will have a profound impact on the future development of XRP.

4. Summary of Major News in Recent Years

• Over the past year, there have been constant headlines around XRP, including product launches, market expansion, and regulatory developments:

• Stablecoin Launch: In December 2024, Ripple launched the USD stablecoin “Ripple USD (RLUSD),” planned to be 1:1 pegged to U.S. dollar assets. The stablecoin has already been tested on XRPL and Ethereum networks and is expected to officially launch on December 4 after approval by the New York financial regulatory authority. Ripple stated that RLUSD will complement XRP in its cross-border payment solutions. The launch of RLUSD marks Ripple’s further expansion into digital currency payments, and some analysts believe that clear stablecoin regulations could further enhance the compliance and market recognition of RLUSD (and XRP).

• Futures Market Expansion: In April 2025, the CME Group (Chicago Mercantile Exchange) announced plans to launch XRP-USD futures contracts on May 19, offering contract sizes of 2,500 or 50,000 XRP. The CME stated that with increasing institutional and retail demand, interest in XRP and its underlying ledger (XRPL) is rising, making it essential to provide futures tools for investors and hedging needs. This decision follows CME’s prior launches of Bitcoin, Ethereum, and Solana futures, indicating that XRP is gradually entering the mainstream financial market’s radar.

• Japanese Market Dynamics: XRP has long enjoyed popularity and adoption in Japan. In April 2025, Mercoin (a crypto exchange under Japanese e-commerce giant Mercari) launched XRP trading services, allowing its 20 million monthly active users to purchase XRP conveniently through existing balances, points, or bank transfers. Meanwhile, data from SBI VC Trade, a crypto platform under Japan’s SBI Group, showed that XRP ranked second in trading volume in March, only behind Bitcoin. Support from domestic financial giants such as Mercari and SBI further consolidates XRP’s position in the Japanese market and reflects its broad application prospects in payments and remittances.

• Regulation and ETF Developments: In terms of regulation, although the SEC has softened its stance on XRP, the overall policy direction for the crypto market remains a focal point. Bloomberg analysts predict that 2025 will see a widespread launch of cryptocurrency ETFs, but ETFs related to XRP may be postponed due to the legal status not being fully resolved. This indicates that until the new SEC leadership fully clarifies its stance, XRP still faces some uncertainties. In addition, the upcoming U.S. stablecoin regulation bill (such as the “GENIUS Act”) brings standardization to the crypto industry and is also believed to help enhance market trust in Ripple’s stablecoin and XRP. In conclusion, recent news suggests that XRP is gradually gaining more attention from institutions and retail investors, but its long-term impact still depends on the evolution of global regulatory frameworks and the expansion of real-world use cases.

5. Current Market Status of XRP

As of the end of April 2025, XRP has become the fourth largest cryptocurrency globally. According to market data, XRP is currently trading at approximately $2.33; with a cumulative gain of over 360% in the past year; and a 24-hour trading volume of about $4.77 billion. XRP has a total supply of 100 billion tokens, with about 58.4 billion currently in circulation. With a market capitalization of approximately $136 billion, XRP ranks fourth in the global cryptocurrency list, only behind Bitcoin, Ethereum, and BSC (Binance Smart Chain’s native token). It can be said that after years of development, XRP has fallen from its previous “top three” market cap position, but its recent strong price rise has brought it back into the global top five.

In addition, user and transaction activity in the XRP ecosystem are also on the rise. XRPL infrastructure is stable, and on-chain transaction peaks continue to be broken. Ripple’s partnership network with financial institutions and enterprises is expanding, with more than a hundred financial institutions now connected to RippleNet. On the exchange level, XRP is widely listed on major global platforms, and new markets such as futures and options have been added. These data and trends collectively indicate that XRP is currently in a long-term bull market cycle.

6. Outlook and Challenges for Future Development

Looking ahead, XRP faces both opportunities and challenges. On the one hand, XRP has a unique position as a “global bridge asset”: it can provide instant liquidity between different fiat currencies. Driven by institutions such as Ripple, XRP is expected to revolutionize the traditional cross-border payment system (e.g., SWIFT), and one international investment bank has listed Ripple as a key competitor to SWIFT. As the demand for digital payments increases globally, XRP’s penetration in emerging markets and financial systems is expected to rise. Furthermore, XRP’s technology is continuously improving, such as XRPL enhancing usability through features like Escrow locking and Hooks; Ripple’s RLUSD and other future financial products may broaden XRP’s use cases.

On the other hand, XRP faces severe challenges. First, regulatory uncertainty remains the biggest risk. Although the SEC lawsuit ended favorably, regulatory attitudes differ across countries, and XRP may still be considered a security in some jurisdictions. Additionally, Bloomberg analysts point out that financial products related to XRP (such as ETFs) may still be delayed due to regulatory barriers. Second, XRPL’s level of decentralization is criticized. Since Ripple controls most validator nodes, the XRP network exhibits a strong degree of centralization in actual operation. This may affect institutional confidence and security assessments. Third, market competition is intensifying. With the advancement of stablecoins and central bank digital currencies (CBDCs), as well as the development of other emerging blockchain technologies (e.g., Ethereum 2.0, DeFi ecosystems), XRP’s absolute advantage may be impacted. Moreover, global economic and monetary policy fluctuations can indirectly affect crypto market demand.

In summary, XRP’s future is full of opportunities and uncertainties. Most analysts believe that if Ripple can continue strengthening cooperation with the financial industry and promote XRPL technology under a more transparent regulatory environment, XRP may gain broader acceptance and use. However, achieving this goal still requires solving issues such as technological scalability, liquidity assurance, and ongoing compliance. As Ripple executives have said, the SEC’s withdrawal of its appeal brings “great certainty” to Ripple, but the entire industry is still awaiting clearer regulatory frameworks. Whether XRP can truly become the mainstream “bridge currency” for cross-border payments remains to be seen.

Conclusion

In conclusion, since its inception, XRP has gone through ups and downs and recently regained vitality due to legal and market factors. Through this comprehensive introduction, it is clear that XRP has innovative technological advantages and broad application potential, but also faces multiple challenges such as regulation, competition, and centralization. For cryptocurrency enthusiasts, keeping a close eye on Ripple and the SEC’s developments, changes in the global regulatory environment, and progress in XRPL technology will help more accurately grasp the future prospects of XRP.