XRP bouncing back faster than its peers after crypto market downturn

XRP is seeing the strongest relief bounce on Friday among its peers following the broad market downturn in crypto.

XRP hit its lowest mark since 2024 on Thursday, but the price of the cryptocurrency has increased roughly 20% in the last 24 hours, outpacing bitcoin and ethereum, which have seen 6.5% and 5.2% gains, respectively. Dogecoin has climbed 8% and solana is up 5% in the same period, data from CoinGecko shows.

XRP's "price tends to amplify market movements," said Kaiko research analyst Thomas Probst to Sherwood. "Markets are experiencing a phase of liquidity contraction with increasing volatility. Therefore, rebounds can be frequent, even if they are rarely sustained over the long term."

The relief comes amidst increased activity on the XRP Ledger. Crypto analytics firm Santiment flagged that, during the dip, XRP Ledger saw a four-month high of “whale transactions” over $100,000 and a six-month high of unique addresses on the network in one eight-hour candle. “These are both major signals of a price reversal for any asset,” the firm said. 

Ripple, the company closely tied to XRP and its largest holder, said XRP is “at the heart of every institutional use case,” such as stablecoin payments, tokenized collateral, and lending markets, according to a Thursday blog post. 

In an updated roadmap for the XRP Ledger, the firm outlined upcoming features that act as a “building block for composable financial ecosystems.” These features include a lending protocol, confidential transfers using zero-knowledge proofs, and a new layer of programmability to escrow primitives. 

Meanwhile, spot XRP ETFs absorbed $5.9 million worth of inflows on Thursday, helping the week remain in the black at nearly $24 million.