The outlook for XRP, the native token of the XRP Ledger, appears increasingly bearish. Originally designed as a bridge currency facilitating fiat transactions on Ripple’s blockchain payment platform, XRP now faces heightened competition from Ripple’s newly launched stablecoin, Ripple USD (RLUSD). This stablecoin offers greater stability and reduced volatility, undermining XRP’s original utility.
Another factor contributing to XRP’s challenges is the lack of intrinsic scarcity that characterizes Bitcoin. Unlike Bitcoin, which derives value from its limited supply, XRP’s entire supply of 100 billion tokens was pre-mined, diminishing its appeal as a scarce asset. Additionally, the XRP Ledger lacks native smart contract support, a key feature that allows for the creation of decentralized applications, further distinguishing it from developer-centric platforms like Ethereum.
The recent conclusion of the lengthy SEC lawsuit against Ripple, which spanned from 2020 to 2025, did offer some temporary relief to XRP. The SEC’s case against Ripple for allegedly selling unregistered securities, which resulted in major exchanges delisting XRP and driving its price below $1 for much of 2022 and 2024, initially seemed detrimental. However, when the lawsuit ended with a lighter penalty for Ripple, XRP briefly surged above $3, only to retrace back to around $1 as broader market conditions cooled.
Currently, XRP’s price stands at approximately $1.33 with a market capitalization of around $82 billion, having fluctuated between $1.14 and $3.65 over the past year. Despite its previous downturns, XRP has managed to maintain its position above $1 this year. This resilience may be largely attributed to the belief among investors that major entities such as Tier-1 banks and significant payment networks will eventually adopt XRP for more efficient fiat transaction settlements.
Partnerships in Asia, particularly in Japan, have already shown promising results. A pilot program revealed that transactions using XRP could offer cost savings of approximately 60% compared to traditional SWIFT transfers. SBI Remit, the international transfer branch of Japan’s SBI Holdings, has leveraged Ripple’s On-Demand Liquidity service to successfully settle over $15 billion in transactions. This trend suggests that XRP may still have a valuable role in markets less reliant on the U.S. dollar or dollar-pegged stablecoins.
While XRP investors acknowledge that the rise of stablecoins like Ripple USD could potentially siphon off some of its transaction volumes, many do not view the situation as entirely adversarial. This perspective contributes to the sustained belief in XRP’s long-term viability, indicating that it might continue to play a significant role in the cryptocurrency market in the years to come.
