XRP use expanded noticeably in the first quarter of 2026. As institutional inflows via spot ETFs continued, tokenised assets and the stablecoin market based on the XRP Ledger (XRPL) also grew rapidly, an analysis showed, driving ecosystem expansion.

On May 30 local time, blockchain outlet The Crypto Basic reported that crypto research firm Messari said in a recent report that U.S. spot XRP ETF holdings rose to 775.4 million XRP. It also said the size of the XRPL-based tokenised real-world asset (RWA) market increased 124 percent from the previous quarter to $2.25 billion.

Messari said XRP’s recent trend should be viewed in terms of rising utility rather than price. Average daily XRP transactions on the XRPL network rose 35.3 percent from the previous quarter to 2.48 million, it said. The report analysed that the expansion of tokenised assets, stablecoins and decentralised finance (DeFi) applications drove the increase in transactions.

As of the end of the first quarter, XRP held fourth place by market value among cryptocurrencies excluding stablecoins. Its market capitalisation was $82.21 billion, down 26.3 percent from the previous quarter, but it maintained a 3.9 percent market share during a broader cryptocurrency market correction.

Institutional investor interest was confirmed through spot ETFs. The report said total holdings of U.S. spot XRP ETFs at the end of the first quarter were tallied at 775.4 million XRP, about 1.26 percent of circulating supply. That was an increase of 1.9 percent from the previous quarter. Holdings also rose to a peak of 810.2 million XRP on March 3.

By issuer, Canary Capital’s XRPC held the largest amount at 197.1 million XRP. That was followed by Bitwise with 194.9 million XRP, Franklin Templeton’s XRPZ with 159.7 million XRP, and 21Shares’ TOXR with 105.8 million XRP.

Messari cited reduced regulatory uncertainty as a factor behind these institutional inflows. The report analysed that concerns over XRP’s status for secondary-market trading were largely eased after legal disputes between Ripple and the U.S. Securities and Exchange Commission (SEC) were wrapped up in August 2025. It said institutional investor access improved and ETF inflows began in earnest afterward.

The fastest-growing area in the XRPL ecosystem was the tokenised RWA market. The market size rose 124 percent from the previous quarter to $2.25 billion, a record high. Messari said this put XRPL among the top blockchain networks supporting tokenised assets, and it assessed XRPL as entering the industry’s fourth rank by RWA market capitalisation.

RLUSD, a stablecoin issued by Ripple, also continued to grow. RLUSD market value on XRPL rose 45 percent during the first quarter to $340.3 million. It is currently the largest stablecoin operating on XRPL.

Messari analysed that recently introduced identity verification features, regulatory compliance frameworks and enhanced privacy functions were having a positive effect on expanding institutional participation. It also said XRP is benefiting from rising network demand as it serves various roles including paying transaction fees, holding reserves, providing liquidity and bridging assets.

Market trading volume, however, showed signs of easing. Average daily XRP spot trading volume fell 32 percent from the previous quarter to $2.69 billion, and average daily perpetual futures volume dropped 28.6 percent to $2.99 billion. This also aligns with the decline in XRP market capitalisation during the first quarter.

Still, XRP spot trading volume on decentralised exchanges (DEXs) rose 9.4 percent to $11.7 million. The report interpreted this as a sign that some trading activity is shifting from centralised exchanges to on-chain infrastructure.

XRPL’s deflationary structure is also being maintained. On XRPL, transaction fees are not paid to validators and are permanently burned. Fees burned during the first quarter totalled 50,750 XRP, down 12 percent from the previous quarter. In dollar terms, that was $80,710. Cumulative burned fees since the network’s launch amount to about 14.3 million XRP.

Messari said the burn pace is limited because fees are very low, but under a maximum supply of 100 billion XRP it provides a gradual deflationary effect over the long term.

Going forward, market focus is turning to expanding XRPL functions. Messari said XRP’s role is gradually expanding beyond a simple payment means, citing the introduction of a native lending protocol as a key example. If implemented, users will be able to borrow and lend XRP directly on XRPL.

The report projected that if lending functions, regulatory compliance frameworks, privacy functions and tokenisation infrastructure are further strengthened during 2026, XRP’s range of uses and institutional adoption could expand further.