XRP, which powers transactions on Ripple Labs’ digital payments platforms, experienced a brief surge after US President Donald Trump suggested it could be included in a strategic crypto reverse.

According to a report in Barrons, much of the gains made by XRP were erased as investors reacted to the confirmation that US tariffs on Canada and Mexico would take effect.

The ongoing trade tensions have dampened market sentiment. This has led to a shift away from risk-on assets including cryptocurrencies.

FxPRo analyst Alex Kuptsikevich was quoted in Barron's report saying that pressure in the traditional markets have clipped the wings of the crypto market. He additionally noted that many traders have taken the opportunity to lock their profits in as the uncertainty heightens.

The overall cryptocurrency market has been facing challenges due to macroeconomic issues. These issues have led investors to adopt a more cautious stance amid global trade disruptions.

Even though XRP’s recent surge sparked some optimism, analysts have cautioned that lasting growth is improbable until there is greater clarity on trade policies and economic stability.

For the time being, XRP and other digital assets are likely to experience volatility, with price fluctuations primarily influenced by geopolitical events and investor attitudes towards riskier assets.

XRP is a digital asset and cryptocurrency which was created by Ripple Labs Inc for fast and cost-effective cross-border transactions. Unlike Bitcoin and Ethereum, which rely on mining, XRP operates on a unique protocol where a network of validators approves transactions. Its model makes it significantly faster and energy-efficient.

Reportedly, transactions settle in about three-five seconds and it takes minimal fee. This makes XRP a preferred choice for financial institutions and payment providers.

In spite of its advantages, XRP has faced legal challenges. US Securities and Exchange Commission (SEC) reportedly filed a lawsuit accusing Ripple of selling XRP as an unregistered security. Reportedly, court sentences have brought partial clarity but regulatory uncertainty has continued to impact its market value and adoption.

As of 2025, XRP continues to rank among the leading cryptocurrencies by market capitalization, supported by significant institutional investment and an expanding role in global finance. Its prospects are heavily influenced by regulatory changes and the overall adoption of cryptocurrencies.

XRP saw a short price spike right after Donald Trump mentioned it could be part of a strategic crypto reserve. Gains did not hold as concerns over a trade war returned.

Tariffs and trade tensions could lead to greater uncertainty in the economy, which makes investors shy away from risky assets such as cryptocurrencies, leading to price depreciation.

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