XRP has failed to make holders rich like bitcoin and ether. Here’s why

XRP, once a top-tier cryptocurrency, has notably underperformed its peers like Bitcoin and Ether, failing to deliver significant returns for long-term holders. While many major digital assets have surged past their 2017-2018 cycle highs, XRP remains considerably below its peak. This divergence is attributed to a confluence of factors, including fundamental supply-side dynamics, a lack of institutional interest, and a protracted legal battle.

Circulating Supply

One primary reason for XRP's lagging performance is the substantial increase in its circulating supply. According to Nicolai Sondergaard, a senior research analyst at Nansen, XRP's circulating supply grew by 63% from 38.7 billion in 2017 to 63.1 billion. This expansion occurred while XRP's total market value only saw a modest 3% decline, meaning each token now represents a smaller share of roughly the same overall value.

Oliver Carding, head of marketing at Tesseract Group, further elaborates that if measured by total value rather than individual token price, XRP's recovery appears more favorable. He notes that with 63% more XRP in circulation, the same circulating market capitalization would naturally result in a price approximately 39% lower than its previous peak, illustrating the dilutive effect of increased supply.

ETF Uptake

Another significant factor contributing to XRP's underperformance is its inability to attract substantial institutional investment, particularly through U.S.-listed exchange-traded funds (ETFs). While Bitcoin and Ether ETFs have garnered billions in investor capital, XRP funds have seen comparatively muted uptake. Data from SoSoValue indicates that XRP funds have only attracted $1.80 billion since their debut, a stark contrast to Bitcoin ETFs, which often pull in over $1 billion in a single day.

Paul Howard, senior director at Wincent, highlights this disparity, noting that ETF uptake for XRP has been weak relative to BTC and ETH. This lack of institutional interest is compounded by declining trading activity, with Nansen's data showing XRP spot volume down 53.5%, perpetual futures volume down 44%, and active addresses down 10.7%, all pointing to a broader weakening of demand.

SEC Case

The prolonged legal dispute between Ripple, the company closely associated with XRP, and the U.S. Securities and Exchange Commission (SEC) has also significantly hampered the token's growth. The SEC sued Ripple in December 2020, alleging unregistered securities sales. This regulatory uncertainty created a chilling effect on the market, particularly during the 2021 crypto bull run, when Coinbase suspended XRP trading.

Although a federal judge ruled in 2023 that XRP sales on public exchanges were not securities offerings, and the case concluded in August 2025 with both sides dropping appeals, the damage was already done. Oliver Carding suggests the SEC case directly explains why XRP failed to revisit its 2018 high during the 2021 rally. Even after the appeals were dropped, XRP's price has fallen about 59%, significantly more than Bitcoin's 32% and Ether's 44% declines in the same period, underscoring the lasting impact of the regulatory cloud.