Despite major developments like Ripple Labs’ settlement with the SEC and XRP inclusion in the US Digital Asset Reserve, the cryptocurrency remains sluggish compared to other market trends. The coin has underperformed the broader crypto market, frustrating investors who anticipated a price surge fueled by these recent legal victories. 2025 saw XRP achieve a significant milestone, being shortlisted for inclusion in the United States’ Digital Asset Reserve and Ripple Labs ending its protracted legal battle with the SEC. However, despite this positive momentum, XRP has declined by 6% in the past three months, even as the overall crypto market capitalization rose by 10%. Traders and analysts were expecting a significant price rally, with many setting their sights on reaching $3.50 – but XRP remains largely stagnant. 2025’s events saw increased interest in XRP, evident in a surge in open interest to 923 million XRP, representing a 31% increase over two weeks and a corresponding $2.2 billion in open positions. While this shows growing interest, it doesn’t necessarily indicate bullish sentiment as futures can also be utilized for shorting the asset. Notably, funding rates surged to 19% annualized on May 22nd, nearing their highest point in six months. This positive indicator is still far from the 100% spike witnessed in December 2024 when XRP rallied from $1.33 to $2.90 within a week. Traders believe this rising interest could stem from speculation surrounding a potential spot XRP ETF, with several issuers already filing applications for the same. The SEC is expected to make a decision by October 2025 on this matter. Despite Ripple Labs no longer entangled in legal battles, political uncertainty remains. CEO Brad Garlinghouse recently called on U.S. Senator Cynthia Lummis, chair of the Senate Banking Subcommittee on Digital Assets, to engage with the company. However, Lummis has yet to respond, adding further unpredictability to XRP’s regulatory narrative. Nevertheless, favorable regulation could unlock new strategic opportunities, allowing Ripple to pursue partnerships, acquisitions, and institutional integrations that could catalyze future price appreciation. Why is XRP lagging despite promising developments? Analysts believe a lack of immediate institutional momentum, lingering political resistance, and the overall market’s focus on other cryptocurrencies may be hindering XRP’s breakout.