In early December, the XRP Ledger recorded its highest velocity reading of the year, showing that XRP coins were moving across the network at a much faster pace than usual.
This jump in activity lined up with a recovery in XRP’s price, signaling that both retail traders and large investors have become more active.
XRP’s network velocity often rises when there’s more spot trading or increased usage of Ripple’s On-Demand Liquidity (ODL) system, which supports cross-border payments. Some analysts say the current network behavior could support a 16% price rally, though crypto market conditions remain unpredictable.
Ripple’s $500M share sale boosts valuation
XRP’s network surge comes shortly after major developments at Ripple, the company connected to the XRP ecosystem.
In November, Ripple raised $500 million through a share sale that brought in big-name Wall Street investors, including Citadel Securities and Fortress Investment Group.
The deal valued Ripple at $40 billion — one of the highest valuations in the crypto industry.
However, the structure of the investment shows that institutional investors are still careful about crypto volatility.
The deal included protections such as:
- A put option letting investors sell shares back to Ripple at a guaranteed return
- Priority rights in the event of a sale, restructuring, or bankruptcy
These terms are not typical for high-growth tech or fintech deals and reflect how traditional finance players are managing crypto-related risk.
Ripple’s valuation still depends heavily on XRP
Despite Ripple’s ambition to expand beyond its token, its corporate value remains closely tied to its XRP holdings.
Bloomberg reports that investors estimate up to 90% of Ripple’s net asset value comes from XRP.
As of July, Ripple held around $124 billion in XRP, much of it locked and released into circulation over time.
Even though XRP has fallen more than 40% since mid-July, Ripple’s valuation remains supported by:
- Its large XRP reserves
- Strong investor backing
- Strategic expansion efforts
One major example is Ripple’s $1.25 billion acquisition of prime broker Hidden Road, signaling that the company aims to play a broader role in global finance, not just in crypto payments.
Over time, as Ripple grows through acquisitions and new services, XRP may play a smaller role in its overall valuation — but today, it remains central.
TradFi is adapting to crypto risk
Ripple’s investment deal highlights a larger trend:
traditional finance is learning how to manage the unpredictable nature of digital assets.
The guaranteed-return option and other protections show that big financial institutions want exposure to crypto — but they want it with safeguards.
At the same time, the spike in XRP network activity and Ripple’s rising valuation show that crypto continues to attract major players, even in a volatile environment.
Bottom line
- XRP Ledger velocity hit a yearly high — a sign of stronger trading and utility.
- Ripple secured a $500M investment at a $40B valuation, with TradFi showing cautious interest.
- Ripple’s value still depends mostly on XRP, though acquisitions may reduce that reliance in the future.
Together, these developments show that XRP and Ripple remain deeply connected, even as the company pushes into new markets. The relationship between the token, the network, and Ripple’s global ambitions will stay at the center of the story going forward.
