As the altcoin reaches new all-time highs in 2025, the major price metric for XRP is up 300%.

The open interest in XRP has risen 300% since January 1st, from $1.92 billion at the start of 2025. It is widely believed that XRP's meteoric surge has been mostly attributed to the futures market. That hasn't been the case, though.

Dom, an on-chain expert, went on to clarify that the surge in XRP is "spot driven." According to Dom, there was an indirect association between spot cumulative volumes delta (CVD) and perpetual CVD. Dom stated,

"On every subsequent pullback, perps have jumped into shorts and faded every single pump."

Futures data analysis was used to further validate the aforementioned claim. As can be seen, the funding rate rose quickly during XRP's first surge in November while staying steady in January.

However, total spot volumes showed an increase, supporting Dom's claim that XRP's surge was driven by spots. Additionally, the futures market has been continuing to bid against an increase in the price of XRP, as indicated by a negative aggregated premium on open interest. This indicates that there is a battle going on right now between bearish perps and bullish spots.

Related: ChatGPT claims that an XRP price of $10 to $50 is "plausible" if a spot ETF is allowed.

An increase in the XRP exchange reserve

It is crucial to remember that the XRP exchange reserve has gradually grown over the last few weeks despite the market frenzy. According to data from CryptoQuant, Binance's XRP reserves have grown by 10% since December 16. The reserves fell sharply earlier in November as the price of XRP was starting to rise.

This suggested that investors are also taking profits, but the exchange reserves are still below the annual average for 2024.

Data analytics platform Santiment, however, noted that XRP whale activity has increased to its greatest level in six weeks. The analytics website stated in an X post,

"The largest jump since December 34th occurred just eight hours ago, with 2,365 $100K+ XRP transactions. Additionally, total holders are rising.

The above content is based on the article by William Suberg from Biraajmaan Tamuly

From the above content, it can be seen that

XRP’s impressive performance in 2025, marked by a 300% increase in key price metrics and new all-time highs, signals a pivotal moment for the altcoin. This surge is indicative of a broader market sentiment shift, with XRP gaining traction not just from speculative futures trading but also from genuine spot market interest. The rise in open interest points to growing institutional and retail participation, suggesting that XRP is maturing beyond its previous volatile swings.

What’s particularly notable is that the rally is fueled by spot market activity, which implies a more stable demand foundation, contrasting with the more speculative nature of futures contracts. However, this does not mean XRP is immune to volatility. The increase in exchange reserves and heightened whale activity may signal potential profit-taking in the near future, which could introduce price fluctuations.

Overall, while XRP appears poised for further growth, this rally should be approached with caution. Investors should be mindful of the risks tied to whale movements and short-term volatility, as the market could experience sudden corrections. Still, the current trend suggests that XRP’s role in the broader crypto market could be solidifying, and its continued growth may be an indicator of greater confidence in both XRP as an asset and its broader utility in the financial ecosystem.