Broader market weakness triggered by escalating military actions between the US and Iran sent cryptocurrency prices tumbling Thursday, with XRP dropping 3.5% before a partial recovery. Trading volume on XRP surged 42% to $2.44 billion, but the decline came with no local catalyst — instead, the slide tracked a broader sell-off as investors reacted to new hostilities in the Middle East. Separately, Pi Network developers announced that the mainnet is upgrading to Protocol 24, requiring all node operators to upgrade by June 2, 2026, or face disconnection from the canonical chain.
Market reaction to military escalation
The US struck Iranian drones, and Iran retaliated by striking a US base in Kuwait, breaking a ceasefire that had held for weeks. The renewed conflict rattled global markets, and crypto was no exception. XRP fell below $1.27 before recovering ground, but the price remained lower on the day. The 42% jump in trading volume suggests traders scrambled to adjust positions, though there was no specific XRP-related news driving the move. A set of new proposals on the XRP Ledger aimed at improving pool deployment flexibility for developers were not directly linked to the price drop.
US government moves seized Alameda assets
In a separate development, the US government transferred $1.89 million worth of cryptocurrency — tokens including RNDR, UNI, SAND, MASK, and AXS — to Coinbase Prime. The assets were part of a larger $13 million seizure from Binance over three years ago, originally tied to Alameda Research. The move drew attention from traders watching for potential selling pressure, but the amount was relatively small compared to the broader market.
Pi Network's upgrade deadline
Pi Network is upgrading its mainnet to Protocol 24, and node operators must update to version 24 by June 2, 2026. The upgrade is expected to cause less than 15 minutes of downtime, but the risk is clear: nodes that fail to upgrade could be disconnected from the canonical chain. Developers recommended that operators not upgrade all nodes at once and that they divert traffic during the process to minimize disruption. The deadline gives operators roughly two years to prepare, but the warning shows the importance of staying current with protocol changes.
As tensions in the Middle East remain high, traders are watching for further escalation that could push markets lower. Whether the ceasefire breach leads to a sustained conflict or a quick de-escalation remains the unresolved question hanging over the crypto market this week.
