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Perhaps the most anticipated and significant news for Ripple this year came in March, when its CEO Brad Garlinghouse announced the formal resolution of a protracted legal battle with the U.S. Securities and Exchange Commission.

Although it took a few more months and a number of hurdles to formally conclude the case and remove the final hurdles, the outcome was seen as a victory for Ripple, given the relatively small amount it had to pay, as opposed to the initial $2 billion demand of the regulator.

This event was a turning point for the company, paving the way for larger initiatives. Just a month after Garlinghouse’s triumphant announcement, Ripple announced the takeover of prime broker Hidden Road for $1.25 billion. A short time later, the platform was renamed Ripple Prime and focused on serving institutional clients.

It was also revealed that the company led efforts to raise at least $1 billion through SPAC to form a digital asset treasury (DAT) focused on accumulating its own XRP token. Separately, it announced the purchase of software provider GTreasury for $1 billion to strengthen corporate finance operations.

Another major move this year was the $200 million acquisition of Rail, a platform designed to enable businesses to move funds with speed, predictability and reliability using both stablecoins and fiat.

The resolution of the dispute with the SEC has also led to a significant improvement in the overall regulatory backdrop for Ripple and its tokens. This became even more evident in November, when the first spot XRP ETF with 100 percent exposure to the asset was launched in the U.S.. Canary Capital’s XRPC set a record daily trading volume on the day of its launch.

XRP reserves on Binance hit an all-time low: a positive or negative sign for the value of Ripple?

Moreover, three other XRP ETFs have followed suit, with the combined net inflows into all four products exceeding $660 million in just a couple weeks of their existence.

Why is XRP showing a decline?

All of the above events occurred in less than a year. One would think that this year would be extremely positive for the underlying asset, right? After all, even the acquisition of Hidden Road alone was called a “turning point” for XRP, and analysts predicted a significant price increase after the conclusion of the lawsuit with the SEC and the start of ETF trading.

And it did happen, at least up to a point. In January 2025, the cross-border token hit its all-time high of 2018, then corrected noticeably, but in July it showed a rebound again, broke it and set a new top at $3.65. Thus, if the year ended at this level, it could be considered a success.

However, then the situation turned 180 degrees. XRP entered a multi-month correction, during which its value repeatedly fell below $2. Although the asset managed to recover this mark, it is currently trading at $2.20, which is actually below the entry price of $2.32 in 2025.

So what is the reason? Why doesn’t the price of the underlying asset match the momentum of a company that may have had its best year in recent history? Probably the most obvious explanation lies in the old “buy on rumors, sell on facts” principle. XRP’s massive rise began after last year’s U.S. elections amid hopes for a more loyal regulatory regime in the country.

Promised internal changes at the SEC also spurred a powerful rally, but once the lawsuit was finally dismissed, the expected fireworks did not follow. Moreover, after the launch of the first ETFs, the rally did not take place; instead, XRP fell in price.

Consequently, it’s probably not about the fundamentals of XRP itself. It’s simply that financial arenas, and the world of cryptocurrencies in particular, are highly sensitive mechanisms that remain susceptible to mass market sentiment and expectations.