The global crypto market has faced increased volatility due to rising geopolitical tensions, particularly between Israel and Iran. This uncertainty has driven investors toward more established digital assets, reinforcing Bitcoin’s position as the dominant player. Bitcoin dominance recently climbed to 65.30%, reflecting a strong risk-off sentiment across the market. During this time, many altcoins have struggled to gain traction—except one: XRP.
In a surprising shift, Bybit’s latest report reveals that XRP has emerged as a standout performer among altcoins. Between November and May, XRP holdings on the exchange more than doubled, while its price surged by 338%, jumping from $0.50 to $2.19. This remarkable growth signals a renewed wave of confidence in the asset, especially following developments in Ripple’s long-running legal battle with the U.S. Securities and Exchange Commission (SEC).
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XRP ETF Approval Hopes Drive Market Sentiment
One of the most significant catalysts behind XRP’s resurgence is growing optimism around a potential spot XRP ETF. While no official application has been approved yet, market sentiment is strongly bullish. According to the prediction platform Polymarket, there is an 85% chance of approval within the year. Bloomberg analyst James Seyffart, a respected voice in crypto regulation, estimates the odds even higher—at 95%—citing increasing signs of constructive dialogue between Ripple and the SEC.
Although former President Trump’s suggestion that XRP could be part of a U.S. national crypto reserve did not materialize, the mere mention amplified public interest and speculation. This kind of high-profile attention, combined with regulatory progress, has played a crucial role in reshaping investor perception.
Bybit’s data further underscores this shift: XRP’s holding percentage on the platform rose from 1.29% to 2.42% over just six months. This growth reflects both retail enthusiasm and cautious institutional interest, positioning XRP as one of the few altcoins gaining momentum amid a Bitcoin-dominated market.
Bitcoin Dominance Soars Amid Risk-Averse Trends
Despite XRP’s impressive rally, Bitcoin remains the undisputed leader in the cryptocurrency ecosystem. Bybit’s user asset distribution data shows that 30.95% of all holdings are in BTC. For every dollar invested in Ethereum (ETH), users hold four dollars in Bitcoin, highlighting a clear preference for the original cryptocurrency.
Over the past year, Bitcoin dominance has climbed from 53.2% to 64%, while Ethereum’s share dropped from 18% to 9%. Although the combined concentration of BTC and ETH dipped to 48.2% in early 2025—hinting at potential diversification—the figure rebounded to 58.8% by May, indicating that investor confidence remains anchored in major assets.
This trend reflects broader market behavior during times of uncertainty: capital flows into perceived safe-haven assets within crypto, with Bitcoin serving as “digital gold.” As macroeconomic and geopolitical risks persist, this flight to safety is expected to continue.
Institutional vs. Retail Investment Strategies Diverge
The Bybit report also highlights a growing divergence between institutional and retail investment behaviors.
As of May 2025:
- Institutional investors continue to favor regulated, large-cap assets like Bitcoin and Ethereum.
- Retail traders, on the other hand, are showing increasing interest in mid-cap altcoins like XRP.
Data shows that institutional portfolios hold significantly higher allocations to BTC and ETH compared to retail users. In contrast, retail traders allocated just 11.64% to BTC and 6.8% to ETH, roughly half the institutional average. This gap illustrates institutions’ conservative approach—prioritizing regulatory clarity and market stability—while retail investors are more willing to explore emerging opportunities.
XRP sits at the intersection of these strategies: it offers institutional-grade credibility through Ripple’s compliance efforts while attracting retail traders with its high-growth potential.
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Is Altseason Delayed or Cancelled?
For years, crypto markets have followed a cyclical pattern known as “altseason”—a period when capital rotates from Bitcoin into altcoins, driving broad market gains. However, recent data suggests this cycle may be delayed—or even disrupted.
The Altcoin Season Index has fallen to 12, down from a stabilized level of 17 and marking its lowest point in two years. Interest in smaller cryptocurrencies dropped sharply from 35.2% in November to just 23.5% in May.
While meme coins and DeFi tokens have held up relatively well, sectors like AI tokens, GameFi, and NFTs have seen notable declines. Even as Bitcoin reached a new all-time high in May, most altcoins failed to follow suit—breaking from historical correlation patterns.
This indicates a structural shift: rather than rotating into speculative altcoins, investors—especially institutions—are channeling funds into established assets and regulated financial products like ETFs. The absence of a broad altcoin rally suggests that “altseason” may only return once confidence in regulatory clarity and macroeconomic stability improves.
Frequently Asked Questions (FAQs)
Is XRP a stablecoin?
No, XRP is not a stablecoin. Its value fluctuates based on market supply and demand. However, Ripple has launched RLUSD, a USD-backed stablecoin, which operates separately from XRP.
Why is Bitcoin’s dominance increasing during uncertain times?
During periods of geopolitical tension or economic instability, investors seek safer assets. Bitcoin is widely viewed as “digital gold,” making it a preferred store of value during market turbulence.
What are the chances of a spot XRP ETF being approved?
Market prediction platform Polymarket assigns an 85% probability of approval this year. Bloomberg analyst James Seyffart believes the odds are as high as 95%, citing positive regulatory engagement between Ripple and the SEC.
How has XRP’s user adoption changed recently?
XRP holdings on Bybit more than doubled between November and May, with its user holding percentage rising from 1.29% to 2.42%. This reflects growing confidence among both retail and institutional investors.
Are institutions investing in XRP?
While institutions remain heavily weighted toward Bitcoin and Ethereum, there are early signs of interest in XRP due to its regulatory progress and real-world use cases in cross-border payments.
Could altseason return in 2025?
A broad altseason remains unlikely in the near term unless there is a significant shift in investor sentiment, regulatory clarity for altcoins, or a major macroeconomic easing cycle.
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Final Outlook: XRP’s Path Forward
XRP’s recent performance demonstrates that meaningful growth is still possible within the altcoin space—even during a Bitcoin-dominated cycle. With increasing hopes for a spot ETF, ongoing legal clarity, and strong exchange-level adoption metrics, XRP is carving out a unique position as both a speculative asset and a potential institutional candidate.
While the broader altcoin market faces headwinds, assets like XRP that combine utility, compliance progress, and strong community support may lead the next wave of adoption when conditions improve.
As the crypto landscape evolves, staying informed about regulatory developments, ETF prospects, and investor behavior will be key to identifying future opportunities—especially in an environment where only the most resilient projects thrive.