XRP underperforms major cryptocurrencies as supply growth and weak inflows weigh

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XRP underperforms major cryptos

Highlights

XRP trades at $1.33, 62.5% below its January 2018 peak of $3.55, lagging major cryptocurrencies like bitcoin, ether, and BNB, which posted substantial gains.
XRP's circulating supply rose 63% from 38.7 billion in 2017 to 63.1 billion, diluting individual token value despite a market value decline of only 3%.
ETF demand for XRP has stayed muted compared to bitcoin and ether, as weak institution inflows, lower trading activity, and lingering S.E.C. regulatory uncertainty weigh on its performance.

Price lag and market drivers

As reported by CoinDesk, XRP trades around $1.33, about 62.5% below its early January 2018 peak of $3.55, even as other large cryptocurrencies have posted gains versus their previous cycle highs. Bitcoin is up 314% from its December 2017 peak of $19,804, dogecoin has gained 322%, BNB is up about 2,800%, ether has risen 66% and zcash is up 38%, while Tron is slightly below its peak, down about 4%.

The token briefly moved above its old high, reaching $3.66 in July 2025 before falling back. That means investors who bought XRP near the 2018 top remain underwater despite a broader rally across the crypto market.

Analysts cited in the report point to a sharp rise in circulating supply as a central reason for the weaker price performance. Nicolai Sondergaard, senior research analyst at Nansen, says circulating supply grew 63%, from 38.7 billion in 2017 to 63.1 billion, while XRP's total market value fell only about 3%, diluting the value represented by each token.

Some analysts argue XRP looks stronger when assessed by total network value rather than unit price. On that basis, the asset has largely recovered, but the larger token count means the same circulating market capitalization translates into a materially lower price per coin than at the previous peak.

Institutional demand and sector position

Fund flows also remain a constraint. U.S.-listed exchange-traded funds have broadened institutional access to digital assets, but bitcoin- and ether-linked products have attracted billions while XRP-related funds have seen much weaker uptake.

Paul Howard, senior director at market-making firm Wincent, says ETF demand for XRP has been muted relative to bitcoin and ether. Softer trading activity and lower network use have also weighed on demand, alongside Ripple's payments-focused strategy and XRP's limited connection to some of the crypto market's most popular segments.

Years of regulatory uncertainty tied to the S.E.C. case have added another overhang for the token. Together, those factors help explain why XRP, despite remaining one of the largest digital assets by market value, has not generated the same wealth gains for long-term holders as several of its major peers.

In our earlier article on India’s disinvestment drive and the standout IDBI Bank stake sale, we explained that over 90% of proceeds raised since FY2016 have come via market-linked routes such as ETFs, public issues and buybacks, while strategic sales contributed only a small share. We also noted that the government has repeatedly missed annual targets in recent years, with the IDBI deal seen as a potential catalyst that could materially lift the current year’s receipts.

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