The decentralized exchange (DEX) sector is rapidly changing, and one foundational blockchain is emerging as a dominant player here: the XRP Ledger (XRPL).
In the overall DEX landscape, XRPL’s native DEX is leading the charge, accounting for an astounding 99% of the total DEX trading volume in this segment. This trend prompted us to take a closer look at not only what is going on with XRP and the XRPL but also to assess the extent to which trading on the XRPL DEX leads to volume that is truly decentralized tokens vs. volume that may be “washed.”
The XRPL DEX Surge
The DEX on the XRP Ledger has become a real powerhouse, achieving an impressive trading volume in recent weeks. Data reveals that the week ending February 9 saw the highest weekly volume to date, with combined DEX volume across both Ethereum and the XRP Ledger approaching $35 million. This recent surge in activity is reflective of a broader trend within the cryptocurrency market, where decentralized exchanges are becoming more common due to their perceived virtues of security, transparency, and user control.
Despite still being in the lead on token supply, Ethereum seems to have lost some traction to the XRPL DEX in terms of trading activity. With the token supply of Ethereum dwarfing that of the XRPL, it’s remarkable to see the XRPL DEX pulling in so many traders. These traders are lured by the DEX’s unique selling proposition: Compared to the Ethereum DEX, the XRPL DEX is less expensive and quicker.
At present, the total DEX trading volume on both Ethereum and the XRPL has exceeded $120 million, demonstrating impressive growth in this sector. This is an early indication that decentralized exchanges may become a larger, more stable part of the crypto ecosystem — as long, of course, as they avoid the regulatory scrutiny that has sometimes afflicted their centralized cousins. For now, traders appear to be moving to both Ethereum and the XRPL for more secure trading on these increasingly decentralized platforms.
Although more $RLUSD supply exists on Ethereum, XRPL’s native decentralized exchange (DEX) accounts for 99% of DEX-based trading volume.
The highest weekly volume so far occurred during the week ending Feb. 9, with combined DEX volume on Ethereum and XRPL approaching $35M.… pic.twitter.com/Wj4ye7ZKvP
— Spencer Noon
(@spencernoon) February 25, 2025
Whale Activity and Market Movements
Although the success of the XRPL DEX has received much praise, significant recent movements in the broader market merit attention. Large holders of cryptocurrency, known as whales, have been particularly active. In the last 96 hours alone, they’ve sold over 370 million XRP. To say this has the potential to affect not just the price but also the supply dynamics of the asset is putting it mildly.
The selling has activity has raised raised eyebrows among some in the market, because it could put pressure on the price of XRP, especially if other big holders mimic the moves of this apparent whale. The sales come at a time when the overall cryptocurrency market is seeing increased volatility, and such big moves are often interpreted as precursors to price drops. The fact that such a significant portion of the XRP supply has been resold in a short amount of time also shows a change in sentiment among big holders of the cryptocurrency.
Even so, whale sales don’t appear to be seriously impeding what looks to be a pretty popular platform. Trading on the DEX built into the XRP Ledger just keeps getting better. And it seems that DEX trading on the XRP Ledger might just keep getting better, too.
Whales have sold over 370 million $XRP in the last 96 hours! pic.twitter.com/1g6FEI3yRG
— Ali (@ali_charts) February 25, 2025
Ethereum’s Struggle to Maintain DEX Dominance
Although Ethereum remains the primary source for decentralized tokens, it seems evident that the blockchain enjoys growing competition from other networks, such as XRPL. Ethereum’s share of the DEX trading market has been consistently pressured by the emergence of alternative blockchains that offer superior transaction speeds and lower fees. The fact that 99% of the DEX trading volume is now being handled on XRPL, despite Ethereum having the larger supply of $RLUSD, suggests that users are increasingly favoring these upstart blockchains for their efficiency and cost-effectiveness, rather than sticking with the relatively familiar environment of the Ethereum blockchain.
User preference may be shifting to other blockchain ecosystems for several reasons, including Ethereum’s current iterative scalability problems, high gas fees, and plodding transaction speeds. Meanwhile, Ethereum is in the midst of its transition to a new proof-of-stake (PoS) consensus mechanism. Some users have taken this opportunity to investigate other decentralized exchanges built on alternative blockchain ecosystems, such as XRPL, which offer far lower costs and much quicker settlement times for users looking to trade.
Moreover, the ongoing progress of DEX platforms on networks such as XRPL has fueled the upsurge in trading volumes we’ve seen of late. Today, DEXs are usually seen as earning their keep because of a combination of three factors—lower fees, faster speeds, and the burgeoning adoption of DeFi applications. This means that they’re doing quite well, in contrast to the DEXs we used to know.
Looking Ahead: Will XRPL Maintain its DEX Dominance?
The XRPL’s DEX dominance is a subject of considerable interest among crypto fans and market analysts. The recent surge in trading volumes, though, speaks to the nascent XRPL DEX ecosystem trying to emerge as a reliable decentralized trading platform. A question moving forward into this year is whether Ethereum will continue to hold sway over decentralized trading, given its sustained pump into DeFi infrastructure, or if this emerging ecosystem will start to reorder the crypto trading landscape.
Will the ascent of alternative blockchains such as XRPL mean the end of Ethereum’s supremacy in the decentralized exchange (DEX) sector, or will upcoming updates enable Ethereum to return to the top? This remains a partially unanswered question, with some in the industry expressing confidence in Ethereum’s ability to maintain its edge. But, the outcome, at least in part, will certainly depend on how well each of these networks develops DEX infrastructure and scales.
At this point, the XRPL is still a big player in the DEX market, and the growing activity on its platform suggests that it’s becoming more popular with traders. Whales continue to make impressive moves, and $XRP’s role in decentralized finance is being set in stone, so we have to look towards the future. And the future of the XRP Ledger’s DEX? With volatility and unpredictability still dominating the market, we have to say it looks pretty darn good.
Conclusion: The Shift Toward Decentralized Exchanges
To conclude, DEX on the XRPL is a decentralized trading powerhouse. The DEX has 99% market share in DEX trading volume and is the DEX of choice for trading tokens on the XRPL. The DEX’s performance has usurped that of DEXes on Ethereum, a not-so-secret stronghold of decentralized trading. The whale activity on the DEX isn’t apparently how colossal DEX trading volume has become in such a short span of time.
As the number of traders moving to decentralized exchanges in search of lower fees, faster transactions, and more control keeps growing, XRPL is working hard to give them what they want. At the same time—sorry, Ethereum!—XRPL has pulled off some unexpected moves lately and remains, at this moment, the decentralized exchange market leader. Still, how long can it hold off the competition? Until the DEX challenge is resolved, the future of decentralized finance remains broadly undefined.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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