Introduction Good morning and welcome to your BitMorpho Daily News & Fundamentals Report for Friday, December 12, 2025. The crypto landscape is showing a distinct divergence today, with institutional adoption signals clashing with underlying network activity concerns for XRP. We are seeing bulls eyeing a rebound, even as institutional flows show recent stagnation after the initial ETF excitement. Key headlines point to a continued tug-of-war: While XRP-spot ETFs saw meager net inflows recently, challenging sentiment after a cautious Federal Reserve outlook, underlying utility expansion remains a strong fundamental counterpoint. On the utility front, major news is breaking regarding the expansion of XRP’s ecosystem reach. Hex Trust announced it will issue and custody Wrapped XRP (wXRP), a 1:1-backed representation to support DeFi activity and cross-chain utility, starting with Solana, Optimism, and Ethereum. This move is intended to broaden XRP’s use case beyond the XRP Ledger (XRPL). Ripple CTO David Schwartz reacted positively to this development, emphasizing that "More XRP ecosystems is a good thing," as it builds utility. However, this positive development is set against on-chain metrics showing that Total Fees Paid per Day on the XRPL have plummeted to levels not seen since December 2020, indicating a sharp drop in organic network usage despite institutional support. Furthermore, on-chain movements continue to draw attention, with Ripple executing a massive transfer of over 152 million worth of XRP to a Binance-linked wallet yesterday, following a substantial treasury reshuffle of over 600 million coins earlier in the week. Traders will be closely watching for continued progress on the Market Structure Bill in Capitol Hill, which remains a critical catalyst for broader market legitimacy. For now, XRP sits testing key support around the 2.00 level, caught between speculative accumulation driven by ETFs and weakening organic demand signals. Stay tuned for our deep dive into the macro backdrop, including Federal Reserve reappointments and global trade figures impacting overall risk sentiment. News Analysis The XRP daily report paints a picture of a divided market, with infrastructural expansion battling declining organic on-chain activity, all while a key $2.00 psychological level is under test. Ecosystem Expansion: wXRP Launch Signals DeFi Ambition The most significant fundamental development for XRP today centers on its burgeoning utility across other chains. Hex Trust announced its plans to issue and custody Wrapped XRP (wXRP), a 1:1-backed token designed to unlock DeFi activity and cross-chain functionality across major platforms including Solana, Optimism, and Ethereum. [cite: context] This strategic move, which aims to broaden XRP's use case beyond the native XRP Ledger (XRPL), garnered a positive endorsement from Ripple CTO David Schwartz, who stated, "More XRP ecosystems is a good thing," emphasizing utility building. [cite: context] This development signals a concerted effort to embed XRP into the broader decentralized finance landscape, potentially increasing demand from new user bases. On-Chain Metrics: Sharp Drop in Network Usage In direct contrast to the optimism surrounding cross-chain adoption, the underlying organic activity on the XRP Ledger (XRPL) shows worrying signs. Total Fees Paid per Day on the XRPL have plummeted to levels not seen since December 2020, suggesting a significant drop-off in routine, organic network transactions. [cite: context] This data point creates a fundamental dichotomy: while institutional interest (such as the recent ETF flows) and cross-chain integration (like wXRP) suggest a future utility narrative, the current, day-to-day transactional throughput of the native chain is decelerating sharply. This weakness in organic demand is a key concern for market stability at the current price point. Whale Activity and Treasury Movements On-chain movements continue to command trader attention following significant treasury activity from Ripple. Yesterday, the company executed a massive transfer of over $152 million worth of XRP to a wallet linked to the Binance exchange, following a substantial reshuffle of over 600 million coins earlier in the week. [cite: context] Such large movements often precede exchange listings, high-volume trading events, or strategic operational reallocations. Traders will be watching to see if this capital is being deployed for market-making activities or if it represents a consolidation/liquidation event. Regulatory Backdrop and Macro Headwinds The broader regulatory environment remains a latent catalyst. Traders are keenly awaiting any progress on the Market Structure Bill in Capitol Hill, which is viewed as a critical step towards broader regulatory legitimacy for digital assets, potentially including XRP. [cite: context] Macro-level news also impacts general risk sentiment, which affects all crypto assets. The Federal Reserve's recent policy actions, including the reappointment of 11 regional bank presidents to new five-year terms, signals continuity in the central bank's leadership structure, despite political scrutiny over the process. Furthermore, Treasury Secretary Scott Bessent has been vocal about overhauling financial oversight bodies like the Financial Stability Oversight Council (FSOC), pushing for looser regulations with a focus on economic growth. This regulatory maneuvering in traditional finance adds a layer of uncertainty. On the trade front, the U.S. September trade deficit narrowed to $52.8 billion, the lowest since mid-2020, driven by soaring exports, which generally suggests improved global demand for U.S. goods, though this is a broad macro factor. Conversely, the UK’s goods and services trade deficit widened significantly in October, indicating mixed global economic health. On the labor market, a surprising surge in initial jobless claims to 236,000 marked the biggest weekly rise since March 2020, signaling potential cracks beneath the surface, despite ongoing low continuing claims. Current Stance: XRP is currently price-testing the critical $2.00 support level. [cite: context] The asset is being pulled by positive news regarding decentralized utility expansion, while simultaneously being weighed down by negative organic on-chain usage data and broader market uncertainty stemming from macro trends and regulatory debates. Outlook Conclusion: A Tug-of-War Between Utility Ambition and Core Network Slump The daily narrative for XRP is decidedly mixed, characterized by a significant divergence between strategic future-proofing and current on-chain health. On the optimistic front, the planned launch of Wrapped XRP (wXRP) by Hex Trust marks a serious commitment to expanding XRP’s utility across major DeFi ecosystems like Solana and Ethereum, a move endorsed by Ripple's CTO. This infrastructure expansion attempts to drive future demand by integrating XRP into a broader cross-chain world. However, this positive fundamental development is heavily undercut by alarming on-chain data. The sharp decline in Total Fees Paid per Day to lows not seen since late 2020 signals a worrying deceleration in organic, day-to-day activity directly on the XRP Ledger. This contrast excitement for external utility versus declining native usage creates market uncertainty as the token tests the critical $2.00 psychological barrier. For the next 24-48 hours, investors must keenly watch which narrative wins out. Specifically, attention should be split between price action relative to the 2.00 level and any immediate community or developer response to the weak organic throughput data. Should the price decisively break support, the organic slump will weigh heavily; conversely, a firm hold above 2.00 could signal that the market is prioritizing the long-term utility narrative over current transaction volumes. *Disclaimer: This report is for informational purposes only and does not constitute financial advice. Always conduct your own research before making investment decisions.*