Why is XRP seeing increased interest from retail investors? Several factors are fueling this surge. The popular remittance-centric cryptocurrency, XRP has rallied by 42% in the monthly charts, capturing attention. Now, Paris-based firm Kaiko, has revealed that retail investors were the ones driving this initial momentum.
XRP's surge is attributed to a combination of fundamental factors, legal developments, and increasing institutional interest. The ongoing legal battle between Ripple and the SEC has seen positive developments lately, fostering optimism among investors. This optimism, coupled with the desire to diversify beyond Bitcoin and Ethereum, is drawing retail attention towards XRP. As other altcoins have stagnated, XRP's potential for growth appears increasingly attractive.
There is a growing demand from institutions for U.S. spot ETFs, with Bitcoin ETFs recently seeing $282 million in net inflows, according to CNF. The potential for an XRP ETF is a major draw. While the XRP ETF approval date remains uncertain, but regulatory clarity has sparked increased interest from retail investors. An ETF approval could drive institutional adoption and further price appreciation, making it an appealing investment for retail buyers. The anticipation of regulatory clarity is driving speculation and, in turn, retail interest.
Furthermore, According to recent data from Glassnode, a significant portion of XRP’s Realized Cap is now in the hands of investors who have entered the market within the last six months, indicating a fresh wave of retail participation. This demonstrates the growing confidence and renewed interest in XRP as a viable investment option.
From what just appeared to be a hopeful uptick in mid-2025, XRP has almost completely recovered in both its price and in what seems to be an increasingly solidified market position. This recovery, combined with the factors mentioned above, creates a compelling narrative for retail investors looking for alternative investment opportunities in the cryptocurrency space. Institutions showing interest is also drawing retail investors into XRP.