XRP Shows Strong Potential in 2025 with Surging DeFi Growth and ETF Speculation

• XRP has started 2025 on a bullish note, positioning itself as a leading asset in the decentralized finance (DeFi) landscape with significant traction.

• The asset’s rapid growth in Total Value Locked (TVL) highlights its increasing relevance and investor confidence in the DeFi sector.

• According to a recent report by COINOTAG, XRP’s remarkable ascent in the DeFi space has made it a focal point for investors looking for promising digital assets.

XRP’s early 2025 momentum highlights its rapid growth in DeFi, boosted by rising TVL and network activity, positioning it as a must-watch crypto asset.

XRP’s Total Value Locked (TVL) surges above $80 million

Ripple has witnessed an explosive rise in its Total Value Locked (TVL) this month, positioning itself among the fastest-growing assets in the decentralized finance (DeFi) ecosystem.

According to DeFiLlama, XRP’s TVL surged past $80 million, a remarkable increase from its levels below $20 million just a few months ago.

This significant growth signals rising confidence in the XRP Ledger’s DeFi applications and liquidity expansion.

Source: DefiLlama

A closer look at the TVL chart indicates that it experienced its first major spike in November 2024, crossing the $60 million mark.

While the metric showed intermittent fluctuations in December, XRP began 2025 with a renewed uptrend, now stabilizing above $80 million.

This trajectory underscores XRP’s expanding footprint in DeFi and the broader blockchain ecosystem.

Network growth and active addresses fuel on-chain strength

Beyond the TVL surge, XRP’s network activity has also displayed remarkable strength.

Data from Santiment reveals a notable spike in network growth, reflecting an increasing number of new wallet addresses interacting with the blockchain.

This is a strong indicator of growing adoption, suggesting that more users are engaging with XRP’s ecosystem. Although, there has been a notable decline recently.

Similarly, CryptoQuant’s data on active addresses confirms this trend. Its active addresses have consistently risen, peaking at over 110,000 in late January 2025 before slightly retracing.

This surge in network participation suggests heightened trading activity and growing on-chain utility, factors that typically support price appreciation.

Source: CryptoQuant

XRP maintains bullish structure amidst market fluctuations

Ripple’s price has mirrored its network expansion, maintaining an overall bullish structure despite minor corrections.

XRP was trading at $2.97 at press time, reflecting a 1.94% intraday decline. However, its long-term trend looked intact, with XRP significantly up from its 2024 lows.

Source: TradingView

The 50-day moving average sits at $2.61, well above the 200-day moving average at $1.26, signaling a bullish crossover and sustained upward momentum.

XRP reached a high of $3.07 before experiencing mild resistance, indicating potential consolidation before another upward leg.

Strong support lies around $2.50, a level where increased buying activity could prevent further downside.

The rising TVL, network expansion, and favorable technical setup suggest it could maintain its strong performance in the coming weeks.

ETF speculation adds fuel to XRP’s growth trajectory

One of the driving factors behind Ripple’s recent growth is speculation surrounding a potential ETF approval.

While Bitcoin ETFs have already made waves in traditional markets, analysts believe that regulatory clarity for altcoins like XRP could pave the way for a spot XRP ETF.

This would significantly boost institutional interest if approved, further fueling its liquidity and adoption potential.

With a rapidly increasing TVL, strong network growth, and solid price action, XRP stands out as one of the most promising assets in 2025.

The possibility of an ETF approval adds another layer of bullish potential, making it a crypto asset to watch in the months ahead.

Conclusion

XRP’s impressive start to 2025 reflects its strong positioning within the DeFi space, supported by rising TVL and network activity. The asset’s robust market structure and potential market catalysts, such as ETF speculation, underscore XRP’s relevance in future discussions about prominent cryptocurrencies. Investors are advised to keep a close eye on XRP as it could play a pivotal role in the evolving landscape of digital assets.