Preface

XRP recently experienced a significant increase, surpassing $2, which it hadn't achieved since mid-December. This rise is attributed to constant ETF inflows and an optimistic regulatory environment in the U.S. The departure of SEC Commissioner Caroline Crenshaw has sparked speculation about more crypto-friendly policies from the regulatory body, potentially setting a welcoming stage for the cryptocurrency markets moving forward.

Lazy bag

On January 2, U.S. spot XRP ETFs recorded inflows of $13.59 million, reaching a total of $1.18 billion since their inception. The exit of Caroline Crenshaw from the SEC marks a potential shift to more favorable crypto regulations.

Main Body

XRP's rally to over $2 represents a significant achievement in the cryptocurrency's journey, marking a first since mid-December. According to the data provided by SoSoValue, on January 2, U.S. spot XRP ETFs saw substantial inflows of $13.59 million, pushing the accumulative figure past the $1.18 billion mark since their launch. This consistent demand indicates a change in the short-term supply and demand dynamics in XRP's favor amid broader, stagnant crypto benchmarks.

This upward momentum coincides with a notable shift in the regulatory landscape following the resignation of SEC Commissioner Caroline Crenshaw. Her departure has raised hopes for a more positive regulatory stance toward cryptocurrency, signifying a potential shift in the SEC's, long known for its skepticism towards crypto ETFs. Notably, Crenshaw had been a critical voice against the SEC's decision to drop its appeal in the high-profile Ripple case.

Adding to this positive outlook, anticipation over incoming legislation is also fuelling XRP's ascent higher. Traders are attentive to the potential markup of a Market Structure Bill slated for January 15, driving elevated policy expectations as we enter the first quarter. This blend of factors underscores why XRP's market performance has been robust, especially compared to other major crypto ETFs, which experienced varied demand.

Analyzing the broader crypto scene, KuCoin registered a record-breaking total trading volume of over $1.25 trillion in 2025. This translates to an average monthly trading volume of about $114 billion, exceeding previous performances. Both spot and derivatives trading were evenly matched, each surpassing $500 billion, indicating a diverse usage rather than reliance on a singular product line. While altcoins dominated trading activities, KuCoin continues to play a critical role in liquidity beyond the major players like BTC and ETH.

Meanwhile, meme coins such as Dogecoin and Pepe experienced substantial rallies, with Dogecoin climbing by 11% and Pepe surging by 17% in a day. CoinGecko's GMCI Meme Index reveals that the meme coin market holds a considerable value of $33.8 billion along with a trading volume of $5.9 billion, making it an appealing yet high-risk-high-reward option amidst fluctuating liquidity and vague macroeconomic motivators.

Key Insights Table