Despite Q1 FUD, 2026 stays fundamentals-driven, continuing the 2025 development-led cycle.
In context, the 2025 cycle diverged from the typical post-halving structure, with a stronger emphasis on development activity and protocol upgrades aimed at improving chain efficiency for the ongoing Web3 transition. 2026 so far appears to be following the same trajectory.
According to Messari’s recent report, XRP’s Q1 performance reflects this momentum in real time.
As the chart below shows, XRPL utility continued to expand alongside ongoing development, particularly around institutional use cases such as RWAs and stablecoins, driving a 124% upside in the RWA market.
Notably, other ecosystem metrics also showed similar strength.
However, the key point is Ripple’s [XRP] price impact, which, despite closing the quarter down 27% amid broader risk-off conditions, showed relative strength in cross-asset terms.
The XRP/ETH ratio ended the quarter up 4.25%, marking XRP’s first outperformance vs. Ethereum [ETH] since Q1 2025.
As the largest altcoin with exposure across stablecoins and TVL, this strength stands out, especially as the market narrative shifts further toward “utility,” making XRP/ETH momentum into Q2 worth watching.
XRP gains traction as RLUSD growth signals early Q2 strength
Liquidity continues to be the key engine of the expanding DeFi market.
XRP’s Q1 performance clearly reflects this shift. According to DeFiLlama, the XRP stablecoin market cap jumped nearly 27%, an impact clearly reflected in on-chain activity, including a 35% rise in daily transactions.
However, this still looks like just the start. XRPL stablecoin market cap has already surged nearly 200% in Q2 so far, pushing total stablecoin market cap to a new all-time high of $750 million.
RLUSD now accounts for 93% of total liquidity, with its monthly supply rising 75%, highlighting how quickly liquidity is consolidating within the ecosystem.
Using Q1 as a base, XRPL’s expanding liquidity is showing early signs of DeFi-led momentum into Q2. Market performance already reflects this, with the XRP/ETH ratio rising over 5% so far this quarter.
And the timing here matters.
With markets pricing in deeper regulatory clarity across digital assets, including the CLARITY Act, this outperformance looks more structural than random. In essence, within the broader DeFi race where Ethereum still dominates, Ripple is gradually catching up.
As a result, XRP’s Q2 outperformance versus ETH may already be priced in.
