XRP Up 89% in One Year While Bitcoin Gains Just 3.6%: What’s Driving the Gap?

XRP-USD -7.22% BTC-USD -6.48%

Quick Read

• XRP gained 89% over the past year while Bitcoin returned 3.6%, driven by SEC lawsuit settlement, RLUSD stablecoin hitting $1B, and $250M Canary ETF launch.

• Bitcoin fell 26% from October highs above $126K to $90K amid risk-off sentiment, profit-taking from long-term holders, and thin post-crash liquidity

• XRP’s 91% annualized volatility is more than double Bitcoin’s 44%, meaning bigger gains in rallies but sharper drops in sell-offs

• If you’re thinking about retiring or know someone who is, there are three quick questions causing many Americans to realize they can retire earlier than expected. take 5 minutes to learn more here

As of mid-November 2025, XRP (CRYPTO: XRP) is one of the only large-cap digital assets still showing strong gains over the last year. According to CoinGecko's market data, XRP has gained about 89% over the past 365 days, while Bitcoin (CRYPTO: BTC) has returned roughly 3.6%.

The gap is striking, and it's not random. The answer lies in a combination of legal clarity, new products and partnerships around XRP, and macro headwinds that have been weighing on Bitcoin.

Here's what's been driving the divergence.

Why XRP Has Outperformed Bitcoin

Several factors contributed to XRP outperforming Bitcoin over the last 365 days. The legal settlement was the biggest catalyst, but technical upgrades and institutional adoption played major roles as well.

Legal Clarity Removes a Major Overhang

For years, the SEC's lawsuit against Ripple Labs hung over XRP's adoption. In August 2025, that changed. Ripple settled for $125 million, and a judge affirmed that XRP sales on exchanges aren't securities.

The resolution removed a significant legal overhang and boosted confidence for banks, payment firms, and regulated institutions to engage with the token without fear of enforcement action.

XRPL Upgrades and a New Stablecoin

Technical innovation also played a role. Ripple launched an Ethereum-compatible sidechain for the XRP Ledger, allowing smart contracts and decentralized finance applications to run alongside native XRP transfers. At the same time, Ripple issued RLUSD, a U.S. dollar-backed stablecoin.

RLUSD reached a $1 billion market cap within a year. These products increased liquidity, enabled borrowing and lending on the XRPL, and created new ways for companies to settle payments.

Partnerships and Bank Ambitions

Ripple has pursued high-profile partnerships over the past year. It applied for a U.S. banking license and has worked with legacy payment networks to pilot on-chain settlements. These efforts signal that Ripple aims to build a regulated payments and custodial platform rather than just operate a speculative token.

The network also launched an institutional prime brokerage after acquiring Hidden Road, giving professional investors access to XRP and RLUSD while bridging on-chain and off-chain liquidity. Each step reinforces XRP's utility as part of a cross-border payment network.

ETF Catalyst and Institutional Buying

Late 2025 brought a significant development for XRP. Canary Capital's spot XRP ETF debuted with roughly $250 million in first-day flows, logging the highest day-one volume among over 900 ETF launches in 2025. Shortly after, Franklin Templeton launched its own XRP ETF, bringing the credibility of a $1.5 trillion asset manager to the space.

Franklin Templeton's entry changed the institutional landscape. The firm's network spans over 13,000 advisory firms managing trillions in client assets. When a conservative giant like Franklin launches an XRP product, it signals to traditional finance that XRP is stable enough for mainstream allocation. This opened doors that crypto-native issuers couldn't access on their own.

Bitwise Asset Management CEO Hunter Horsley told CoinDesk that many asset allocators have been awaiting regulated vehicles to gain exposure to the crypto market. ETFs lower barriers for pensions and wealth managers, and early buying suggests some investors see value in a token that now has legal clarity and expanding utility.

Market Positioning and High Beta

Another reason XRP surged is its high volatility. XRP's one-year volatility hit 91%, more than double Bitcoin's 44%. High beta works both ways. XRP often overperforms in rallies and underperforms in sell-offs.

Recent months brought risk-on flows into smaller tokens as traders rotated from majors into assets with catalysts. XRP benefited from that rotation, especially after a lagging period in 2024 and early 2025.

Why Bitcoin Has Barely Moved

Bitcoin's weak performance reflects different dynamics. While XRP benefited from specific catalysts, Bitcoin has been pulled by broader macro forces.

Macro Headwinds and Risk-Off Sentiment

A CNN report notes that Bitcoin fell more than 26% from its October high above $126,000, trading around $93,000 by mid-November. Investors became more risk-averse due to uncertainty about Federal Reserve rate cuts and high equity valuations.

Bitcoin is considered a high-beta asset but it often sells off when investors flee risk exposure. The report quotes OKX executive Haider Rafique saying Bitcoin's pullback is part of a broader shift in risk sentiment.

Profit-Taking and Thin Liquidity

Long-term holders have also been taking profits after Bitcoin's multi-year rally. Analysts believe that selling pressure from older holders, combined with uncertainty about the liquidity environment and Federal Reserve policy, has weighed on the price.

Another factor is thin order books following a flash crash on October 10. Fewer orders amplify price swings. With fewer market makers after the crash, small sell orders can lead to outsized moves, making Bitcoin more sensitive to bad news.

Competing Narratives and Investment Rotation

Nasdaq surged 21.86% in 2025, while Bitcoin's gain is around 2.96%. That has made investors rotate toward equities and artificial intelligence plays, leaving Bitcoin as a high-beta reflection of macro risk rather than a unique growth story.

Bitcoin's relative weakness might signal a bottoming process rather than a structural flaw. Nevertheless, the rotation into AI and high-growth stocks has drawn capital away from Bitcoin just as XRP has become a new speculative focus.

Lack of Fresh Catalysts

Bitcoin's core narrative, digital gold, has been mature for years. After the 2024 halving and the introduction of multiple spot Bitcoin ETFs, there have been few new catalysts. The GENIUS Act, passed in July, eased regulations for stablecoins, but it didn't directly enhance Bitcoin's utility.

Meanwhile, XRP has benefited from new products like the EVM sidechain and RLUSD, plus renewed regulatory clarity. Without a comparable development, Bitcoin has responded primarily to macro and liquidity conditions rather than internal upgrades.

Comparing Volatility and Risk

High returns often come with high risk. XRP's annualized volatility of 91% is more than double Bitcoin's 44%. That means the token can swing wildly, rewarding investors during rallies but punishing them during downturns.

Bitcoin's lower volatility reflects its larger market capitalization and deeper liquidity. It behaves more like a macro asset influenced by interest rates and economic news. Investors considering XRP must be comfortable with bigger price swings and the possibility of quick reversals.

XRP And Bitcoin Outlook: Will the Gap Persist?

XRP's strong performance over the past year doesn't guarantee continued outperformance. Prices have already pulled back from July highs, and the token remains highly sensitive to market sentiment.

Still, several factors could support further gains. Institutional adoption might grow if more spot ETFs launch and if banks integrate RLUSD and the EVM sidechain into payment rails. Ripple's pursuit of a U.S. banking license and its prime brokerage arm could broaden XRP's use cases.

For Bitcoin, upside might depend on macro conditions. A shift back to risk-on sentiment, a rally in stocks, or a new narrative, perhaps around improvements to scaling or privacy, could attract capital. Some analysts see the current weakness as a healthy consolidation ahead of the next cycle.

Others warn that without fresh catalysts, Bitcoin could continue to lag as investors explore higher-beta tokens like XRP.

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