How XRP’s ‘Incredible Year’ Became A 48% Crash Despite Everything Going Right

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XRP (CRYPTO: XRP) has crashed 48% from its $3.65 July peak despite winning the SEC lawsuit, landing $1 billion in ETF inflows, and Ripple deploying $2.7 billion in acquisitions—proving regulatory wins don’t guarantee price gains.

The SEC lawsuit against Ripple concluded in August when both sides dropped their appeals, reinforcing a 2023 ruling that separated institutional XRP sales from retail activity.

Former SEC Chair Gary Gensler filed a last-minute appeal just five days before Donald Trump fired him, mirroring the lawsuit’s initial filing in 2020.

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Following the settlement announcement on Aug. 8, XRP rallied 8% in a single day with trading volume spiking 146.3%.

However, Ripple CEO Brad Garlinghouse accused the SEC of engaging in a “war of legal terror,” arguing the lawsuit caused $15 billion in losses to XRP investors.

Ripple deployed $2.7 billion in 2025 to transform into a comprehensive financial services platform.

The company spent $1.25 billion in April to acquire Hidden Road, rebranded as Ripple Prime, making it the first crypto firm to own a global multi-asset prime broker.

Since acquisition, Ripple Prime’s business reportedly grew 3x, now handling 60+ million daily transactions.

In October, Ripple added GTreasury for $1 billion, gaining enterprise access to Fortune 500 clients including American Airlines Group Inc., Goodyear Tire & Rubber Co. and Volvo AB, along with exposure to more than $12.5 trillion in annual payment flows.

Smaller deals included Rail for $200 million in August and wallet provider Palisade.

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XRP spot ETFs launched in November 2025, with the Canary XRP ETF posting $58 million in first-day volume—the highest among 2025’s ETF debuts.

By mid-December, XRP funds attracted $883 million in net inflows and built $1.25 billion in assets after a record 30-day inflow streak without a single outflow day.

Despite this institutional demand, XRP is down 48% from its July peak, trading around $1.88 as of late December.

Ripple’s dollar-backed stablecoin RLUSD, launched in December 2024, reached a $1.3 billion market cap by year-end, ranking as the 11th largest stablecoin.

Key partnerships include Mastercard Inc. for credit card settlements and regulatory approval in Singapore.

In July, BNY Mellon became the primary custodian for RLUSD reserves.

However, nearly three months after launch, RLUSD captured less than 0.7% of the stablecoin market, falling short of expectations.

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Three delays killed the rally XRP holders anticipated:

• Legal Delays: The SEC lawsuit didn’t conclude until August 22, keeping institutions and ETF issuers sidelined.

• ETF Timing: XRP spot ETFs didn’t go live until November, delayed by both the lawsuit and government shutdown.

• CLARITY Act Stalled: The bill remained stuck in Congress, delaying the regulatory clarity banks need to step in.

Garlinghouse predicts the CLARITY Act will pass in the first half of 2026, but crypto analyst Zach Rector warns it will be a buy-the-rumor, sell-the-news event.

Looking ahead, Ripple plans to roll out native lending on the XRP Ledger in 2026 through XRPL Version 3.0.0, shifting the network beyond payments into institutional-grade DeFi.

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