XRP News Today: XRP ETFs Surge While On-Chain Activity Drops—Will Institutional Interest Take the Lead?

The

market is currently facing a mix of contradictory signals. Institutional enthusiasm for the cryptocurrency is on the rise, as evidenced by the introduction of several spot ETFs, yet its on-chain metrics are showing signs of weakness. Bitwise and 21Shares have both launched XRP ETFs, joining an expanding group of firms providing regulated access to the asset. Among these offerings are the and 21Shares' TOXR ticker , which highlight the growing institutional acceptance of XRP. Despite this, XRP's price has remained subdued, staying under $2 even with the positive sentiment surrounding the ETF launches . This gap between market sentiment and technical indicators illustrates the difficulties XRP faces as it tries to balance regulatory advancements with actual network activity.

On-chain data reveals a significant drop in network engagement, with over the past month. The number of transactions has also sharply decreased, with daily activity dropping to 686,000 on Nov. 24, much lower than the 1.2-1.5 million range seen earlier in the month . These numbers point to a reduced demand for XRP's primary use as a payment medium. The user base appears stagnant, and technical measures like the RSI indicate a fragile price setup. Although the price hasn't yet fully reflected these fundamentals, experts warn that this disconnect could either be a short-term correction or a delayed adjustment to the asset's underlying value .

The introduction of ETFs has nonetheless brought new elements into play. The

saw $22 million in trading volume on its opening day, even as XRP dropped 7% below $2 . Despite this strong initial volume, it hasn't led to sustained price gains, mirroring previous ETF launches like Canary Capital's XRPC, which also failed to ignite a lasting rally . Market participants are coming to terms with the fact that institutional investments, while beneficial, may not immediately counteract the selling pressure from large holders. Notably, whale activity has surged, with after the ETF debut. These liquidity events, along with a shrinking percentage of XRP holders in profit , suggest the market is structurally weak.

Clearer regulations have undoubtedly expanded XRP's accessibility. The SEC's approval of spot XRP ETFs, including those from Franklin Templeton and Grayscale

, represents a major milestone in institutional adoption. These ETFs give U.S. investors a regulated way to gain exposure to XRP without directly owning the token, which could boost liquidity and attract long-term investors such as pension funds and financial advisors . However, immediate effects are limited by broader economic conditions. The recent downturn in the crypto market, triggered by Bitcoin falling below $86,000 and over $220 million in liquidations , has dampened the positive momentum from XRP's ETF launches.

Looking forward, XRP's future depends on how these opposing factors play out. While ETFs lay the groundwork for future investment, a recovery in on-chain fundamentals is essential for a bullish outlook. Experts emphasize that a revival in payment volumes and transaction counts is necessary for any significant price rebound

. For now, the market remains precariously balanced, and XRP's ability to outperform in December will rely on whether institutional demand can overcome ongoing selling pressure and broader market volatility.