After months of consolidation and uncertainty in the broader crypto market, a trio of altcoins, XRP, Cardano, and Avalanche, are once again attracting attention.
Their renewed momentum is not solely due to speculation; it is also supported by key ecosystem upgrades, regulatory developments, and strategic partnerships that have brought these projects back into the media spotlight.
XRP’s Regulatory Relief and Global Expansion
- Ripple’s Legal Momentum
In May 2025, Ripple and the US Securities and Exchange Commission (SEC) filed a joint motion to pause their appeal while finalizing a $50 million settlement, indicating progress toward resolution.
Although a federal judge recently flagged procedural issues and temporarily blocked the settlement, both parties remain aligned to refiling and concluding the case.
This legal de-escalation has already had a positive effect: after Ripple’s CEO announced SEC appeals would be dropped in March, XRP surged over 13%, trading around $2.50-$2.60.
The ongoing buy sentiment and whale accumulation boosted market sentiment, even though the case is still pending a June update.
- XRP Relisting and US Confidence
Following the legal clarity, major exchanges have begun to relist XRP, making it more accessible to US investors. The removal of enforcement actions has led to an increase in trading volume, with average daily spot volume reaching $3.2 billion in Q1 2025 and peaking at $16 billion.
This surge reflects renewed institutional and retail confidence, solidifying XRP’s position as a key component in crypto investment portfolios.
Legal relief has revived XRP’s narrative. XRP is firmly back in focus in May, thanks to increased RippleNet adoption, deeper usage in remittance corridors and CBDC trials, and improved token metrics.
Will these drivers make it through the rally? The next court update on June 16 could be the catalyst for amplifying or stalling the momentum.
- Cross-Border Payment Adoption
RippleNet continues to expand across APAC and Latin America. The On-Demand Liquidity (ODL) system now serves over 300 institutions, including Santander, SBI, American Express, Nium, and Tranglo.
Notable cross-border use cases:
- MoneyTap in Japan, powered by SBI, uses XRP for domestic instant settlements.
- Pilots with central banks (CBDCs) in Montenegro and Vietnam highlight XRP’s liquidity role.
These initiatives indicate XRP’s growing utility beyond trading by serving real-world payment corridors.
- Tokenomics and Market Reaction
Despite a decrease in on-chain XRP Ledger activity (transactions down ~37%, wallet creation -40% QoQ), the trading ecosystem is still strong.
Market responders include:
- Whale accumulation and increased long bets during legal milestones.
- A bullish technical pattern is prompting some analysts to forecast a 500% increase to $14 on favorable court resolution.
- Broader forecasts range from $5-$7 by early 2025 (Arthur Azizov) to optimistic long-term projections exceeding $100.
Cardano’s Smart Contract Renaissance
- Hydra Scaling Protocol Goes Live
Cardano’s Hydra, a Layer-2 scaling solution, recently went live on the mainnet and has already shown impressive throughput, peaking above 1 million TPS during the Hydra Doom gaming tournament featuring the classic Doom game.
Hydra operates through “Hydra Heads,” off-chain state channels that significantly reduce latency and fees while preserving Cardano’s on-chain security.
For developers, this means:
- Support for near-instant transactions, making it ideal for micropayments, high-speed gaming, and DeFi/smart contracts.
- An isomorphic architecture, ensuring that off-chain logic translates seamlessly into on-chain settlement.
- Cardano’s Expanding dApp Ecosystem
Cardano’s DeFi space continues to thrive, with total value locked (TVL) increasing by approximately 166% QoQ in Q4 2023 and hovering around $450 million. Leading protocols include:
- Indigo Protocol, a synthetic assets CDP platform, has a TVL of $35M-$450M depending on the source.
- Minswap, a core DEX that provides low-fee liquidity and swaps, driving strong volume and adoption
Additionally, stablecoins like DJED and iUSD, as well as Oracle support, are gaining traction, strengthening ecosystem utility.
- Charles Hoskinson’s Strategic Vision
In early 2025, Charles Hoskinson reaffirmed Hydra’s purpose as a practical application, integrating zero-knowledge enhancements, improved communication, and support for developers like Anastasia and Sundae Labs.
Governance also saw meaningful advancement: according to a Q1 2025 Messari report, Cardano has enabled on-chain voting under CIP-1694, allowing community-driven decisions on network parameters, treasury, and protocol changes.
The 2025 roadmap emphasizes scaling, interoperability, sustainability, and developer-friendly upgrades, laying the foundation for a thriving DeFi and dApp ecosystem.
Cardano’s Hydra Layer-2 is now operational, providing unparalleled throughput and paving the way for advanced DeFi and gaming applications. Meanwhile, its ecosystem, which is built on protocols such as Indigo and Minswap, is growing in terms of TVL and utility.
This May, Cardano will experience a true smart contract renaissance thanks to Hoskinson’s roadmap and strengthened community governance.
Avalanche’s GameFi and Enterprise Push
- Subnets Gaining Popularity
Avalanche’s modular Subnet architecture allows for the creation of custom blockchains with tailored validators, gas tokens, and security, making it ideal for high-performance applications.
Recent subnet launches include the following:
- Henesys Subnet: MapleStory N, the blockchain version of the iconic Nexon game, launched in mid-May and already has nearly 1 million registered wallets and 31 million+ on-chain transactions during testing.
- DeFi Kingdoms and Swimmer Network: Both migrated to Avalanche subnets, to lower costs up to ~85% and boost daily user and transaction volume.
These real-world deployments show how subnets are powering Avalanche’s GameFi renaissance, improving scalability, making user onboarding easier, and, most importantly, generating native AVAX gas fees for network growth.
- Institutional and Gaming Partnerships
Avalanche is not only focusing on GameFi, but also deepening its institutional footprint:
- Spruce (Evergreen) Subnet: Pilot by Citi, T. Rowe Price, WisdomTree, Wellington, and Cumberland to test on-chain trade settlement and tokenized instruments.
- Enterprise Trials: At high-profile summits, Ava Labs representatives, including John Wu, emphasized institutional use cases for subnets such as stablecoins, FX swaps, and tokenized assets.
- TradFi Collaborations: Major players such as BlackRock, JP Morgan, and Visa rely on Avalanche’s low-cost, high-throughput framework for tokenization pilots and enterprise chains.
Avalanche’s partnerships position it as a leader in bridging Web2 → Web3 transformation for global financial firms.
3. DeFi Rebound on Avalanche AVAX Price Surge
- AVAX Price Surge: In May, the MapleStory subnet launcher and positive technical patterns pushed AVAX above the $20 resistance. Analysts predict a potential rally to $30+ as momentum builds.
- Trader Joe Incentives: The flagship DEX has joined Avalanche’s liquidity push through Avalanche Rush, offering up to $20 million in AVAX/JOE rewards to promote TVL, pool growth, and ecosystem development.
- Avalanche BOOST and Meme Coin Rush: Avalanche Foundation’s new incentive tranches, such as BOOST campaigns and the Meme Coin Rush, are injecting $1+ million in AVAX liquidity rewards, particularly within community and meme-coin pools on Trader Joe/SteakHut.
These collaborative efforts are propelling DeFi activity back to 2021 levels, reinforcing AVAX’s position as a thriving ecosystem for yield, innovation, and developer outreach.
Avalanche’s Subnet strategy has led to significant GameFi and institutional engagement, including Web3 gaming rollouts and proof-of-concept trials with global banks.
This May, Avalanche has regained popularity due to strong price action, DeFi incentives, and expanded liquidity programs.
Market Sentiment: Altcoin Rotation Has Begun
As Bitcoin dominance (BTC.D) fell from more than 65% to approximately 63.9% in May 2025, a notable shift occurred: altcoins are gaining renewed attention from both retail and institutional investors.
- Bitcoin Dominance Tapering = Capital Rotation
Bitcoin reclaimed the $100K+ level in early May, but its share of total market capitalization decreased from ~65% to 63.9%, indicating a capital shift towards altcoins.
The Altcoin Season Index jumped from a bearish 24 (early May) to 36, indicating growing, though not yet full-scale, momentum in altcoin markets.
While some analysts caution that Bitcoin remains dominant (reaching ~64.7% again later in June), others are optimistic, citing a “golden cross” in altcoin indicators that echoes early 2021 trends.
- Altcoin Spotlight: XRP, Cardano, and Avalanche
As capital rotates, XRP, Cardano, and Avalanche stand out as concrete catalysts:
XRP and Cardano saw institutional inflows: XRP products pulled in $10.5 million, ADA added $1.2 million, and multi-asset crypto vehicles showed consistent buying in May.
According to BeInCrypto, XRP’s newly launched CME futures and ETF anticipation are attracting institutional interest as firms “move further out on the risk curve”.
Avalanche was also listed as a top-layer-1 crypto on fund providers’ radar, which contributed to increased liquidity and investor interest.
Collectively, these assets benefit not only from macroeconomic flow but also from project-specific upgrades and exposure through investment vehicles.
- Fund Managers and Influencers are Positioning
Leading institutions such as CoinShares and Daily Hodl report highlight multibillion-dollar crypto product inflows, with altcoins playing a significant role as the market shifts risk preferences.
On social media, analysts using platforms such as X (formerly Twitter) note parallels between May 2025 and the early stages of the 2021 altcoin run. Merlijn, an influencer, said:
“Every altcoin 10x’d after that… Now look at 2025… Same fakeout. Same structure. This isn’t a coincidence. It’s a setup. Altseason 2025 is loading.”
This combined interest, which is backed by technical setups, inflows, and social sentiment, strengthens the case that a targeted altcoin rally is underway.
With Bitcoin’s dominance easing and capital rotating to altcoins, XRP, Cardano, and Avalanche are regaining traction.
Their recent inflows, institutional endorsements, and community buzz indicate that May could be the start of an altcoin-focused cycle, though analysts caution that Bitcoin may regain control without additional catalysts.
Risks and Realities: What Could Derail the Momentum?
While XRP, Cardano (ADA), and Avalanche (AVAX) have resurfaced in the spotlight, several key risks could halt or reverse their recent progress. Here’s a comparison and what investors should look out for in the second and third quarters.
1. Regulatory Setbacks
XRP: While regulatory progress is strong, a final SEC judgment could reverse gains. On-chain profit-taking and supply overhang have already pushed prices near resistance levels, with realized gains exceeding $68 million in mid-June, inducing distribution.
Cardano: Cardano remains under regulatory scrutiny following SEC actions targeting PoS tokens. While the Plomin upgrade improves governance, pending global regulations (such as Basel crypto standards) could classify ADA as a high-risk asset, increasing capital and compliance costs.
Avalanche: Altcoin ETFs have a 90% chance of SEC approval, but regulatory reforms such as the CLARITY Act may lead to stricter classifications and oversight, potentially reducing institutional interest.
2. Security and Ecosystem Vulnerabilities
Avalanche: The history of DeFi hacks, including the $4.8 million DeltaPrime exploit, highlights security gaps in Subnet DeFi builds.
A $3.9 million AVAX outflow and looming bearish technical signs indicate a potential price drop to $14-20 if safeguards are not strengthened.
Cardano: Despite progress made during the Plomin and Voltaire eras, critics warn of scalability and decentralization issues. Limited TPS (~18/sec on L1) and slow adoption of high-tier developer support may cause ADA to fall behind faster chains.
XRP: XRP’s on-chain metrics show a drop in wallet creation and transactions (~-37% QoQ), indicating slower adoption despite regulatory optimism.
3. Liquidity and Technical Risks
Avalanche: Despite high liquidity, price technicals remain weak. A breakdown of support at $35 could result in a 20% drop.
XRP: Testing resistance near $2.20-$2.50, XRP may experience a brief pullback if profit-taking continues.
Cardano: Without increased developer adoption, liquidity may stagnate relative to emerging L1 ecosystems, limiting ADA’s ability to ride macro altcoin cycles.
What Investors Should Watch (June–Q3)
| Watchpoint | Implications |
| XRP SEC Settlement (June 16) | Faster dApp and developer growth validates the smart contract thesis. |
| Avalanche Subnet Security | No major exploits = confidence; otherwise, price dented. |
| Cardano Development Pace | Faster dApp and developer growth validate the smart contract thesis. |
| Global Regulatory Frameworks | U.S. and Basel standards could reshape crypto risk treatments. |
| Technical Price Levels | XRP holding $2.20+, AVAX above $35, ADA launching new dApps. |
Overview of Comparative Risk
XRP: Tail-risk centered on legal resolution; strong adoption allows for post-judgment upside, but profit-taking may cap gains.
Cardano: Execution risk, though governance reforms are in place, achieving true decentralization, scalability, and developer adoption remains critical.
Avalanche: Mixed risk profile, security, and liquidity are improving, but technical failures or Uniswap-style exploits could derail progress.
Investors should expect short-term volatility in XRP, ADA, and AVAX, despite their strong momentum. The next few weeks, particularly regulatory milestones, security audits, and dev ecosystem growth, will determine whether the spotlight remains on or dims into Q3.
Conclusion
This May, XRP, Cardano, and Avalanche are back in the spotlight but for fundamental reasons rather than fleeting hype.
However, this spotlight comes with a caveat: sustainability is dependent on execution. Regulatory headwinds, liquidity shifts, and ecosystem risks persist. Short-term price spikes are beneficial, but they do not ensure long-term success.
If you’re investing or building in this space, keep track of ongoing ecosystem updates, join project communities, and, most importantly, DYOR (Do Your Own Research).
Long-term Web3 winners will not simply ride momentum; they will provide real utility, overcome scaling challenges, and survive market cycles.
