Legal Clarity and Ecosystem Growth Fail to Boost XRP's Stagnant Price

Ripple Technologies’ $125 million settlement with the U.S. Securities and Exchange Commission (SEC) has officially concluded a five-year legal battle, yet XRP’s price remains stagnant, according to a prominent crypto lawyer. The settlement, confirmed paid to the U.S. Treasury on August 18, 2025, removes legal uncertainty as a factor for XRP’s underperformance, as emphasized by Bill Morgan, a pro-XRP attorney. “The lawsuit excuse has run its course for any further lack of XRP adoption or flat price action,” Morgan stated, citing the settlement’s completion as a pivotal shift in market dynamicsRipple Settles 5-Year SEC Lawsuit With $125M Payment as XRP…^[1]. Despite regulatory clarity, XRP has failed to recover from a 75% value loss between April 2021 and October 2024, with recent data showing a 4.85% decline in the past 24 hours, trading at $2.85Ripple Settles 5-Year SEC Lawsuit With $125M Payment as XRP…^[1].

The resolution of the SEC case, which imposed restrictions on institutional XRP sales but preserved key legal distinctions between retail and institutional transactions, was expected to catalyze price growth. However, XRP’s market reaction has been muted. The token’s price stagnation coincides with rising trading volumes—spiking to $8.17 billion in a single day—indicating strong selling pressureRipple Settles 5-Year SEC Lawsuit With $125M Payment as XRP…^[1]. Analysts attribute this to broader market sentiment rather than legal risks, as the token has not responded to bullish developments such as the approval of the first U.S. spot XRP ETF or expansion of Ripple’s stablecoin RLUSDRipple’s Legal Ends with $125M Payment, XRP Price Still Stagnant^[3].

Ecosystem growth, however, continues to gain traction. Ripple’s RLUSD stablecoin, launched in December 2024, has expanded to Africa through partnerships with fintech firms like Chipper Cash and Yellow Card, injecting $700 million into cross-border payment systemsRipple Settles 5-Year SEC Lawsuit With $125M Payment as XRP…^[1]. The stablecoin’s market cap now exceeds $729 million, reflecting growing adoption in regions with high stablecoin usage. Meanwhile, Japan’s financial sector is integrating XRP into its infrastructure, with nearly 80% of banks planning to adopt the token by 2025 to streamline cross-border transactions. SBI Holdings, a major Japanese financial conglomerate, has established a 2.5 billion yen ($17 million) XRP treasury, signaling institutional confidenceRipple’s Legal Ends with $125M Payment, XRP Price Still Stagnant^[3].

Innovations in decentralized finance (DeFi) also highlight XRP’s utility. The Flare Network recently launched a stablecoin backed by XRP on its Liquity V2 platform, aiming to enhance on-chain liquidity and DeFi use casesRipple’s Legal Ends with $125M Payment, XRP Price Still Stagnant^[3]. These developments underscore Ripple’s strategic focus on expanding XRP’s real-world applications beyond speculative trading.

While legal risks have been mitigated, XRP’s price trajectory remains uncertain. The token’s failure to capitalize on regulatory clarity and ecosystem advancements has raised questions about market demand and investor sentiment. Whale tracking platforms have noted significant XRP transfers, including a $415 million transaction in September 2025, potentially signaling future market shiftsPro-XRP Lawyer: Ripple-SEC Lawsuit No Longer Excuse for XRP Flat Price^[4]. However, without a clear correlation between these movements and price action, the token’s near-term outlook remains cautious.