XRP Has Fallen More Than 60% -- and Ripple's Success Won't Save It

XRP (XRP +1.94%) is down more than 60% during the past eight months, yet Ripple – the company behind XRP – has been on a tear, inking new deals with some of the largest financial institutions in the world, like Deutsche Bank, which is integrating Ripple’s payment technology to improve efficiency in areas like cross-border payments.

Tokenization – the digitalization of real-world assets – is booming, too; the Ripple’s XRP Ledger now hosts $2.3 billion in tokenized real-world assets, up from under $1 billion at the start of the year.

So why isn’t XRP benefiting? Because most of Ripple’s wins don’t actually involve XRP.

Image source: Getty Images.

The core disconnect

This is the core disconnect that XRP bulls have struggled with for years. Ripple, a closely held company, has genuine enterprise traction, but its most widely adopted product – what was called RippleNet – functions primarily as a messaging layer and doesn’t require banks to touch XRP, and most don’t.

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CRYPTO: XRP

XRP

Today’s Change

(1.94%) $0.03

Current Price

$1.42

Key Data Points

Market Cap

$87B

Day’s Range

$1.39 - $1.42

52wk Range

$1.14 - $3.65

Volume

1.2B

Ripple’s liquidity feature – what was called On-Demand Liquidity (ODL) – is the primary way in which institutions make use of XRP. Except that Ripple’s stablecoin, RLUSD, introduced at the end of 2024, can now be used in its place.

The bottom line

Ripple’s business has never looked stronger. But that strength isn’t flowing to XRP, and that’s likely to continue. I wouldn’t invest in XRP – although I know plenty of people would disagree with me.