XRP Drops 2.885% as Whale Activity Shifts, UK Recognizes Utility Token

XRP's latest price was $2.99, down 2.885% in the last 24 hours. This shift comes as price action flirts with a critical support level around $2.96. Data from Santiment shows a noticeable dip in the holdings of wallets with 1M–10M XRP—commonly considered “whale wallets.” Between early July and mid-September 2025, these wallets saw significant accumulation, especially during XRP’s sharp rally in early July. At that time, XRP’s price shot up, peaking in mid-July. Whale accumulation followed this trend, suggesting that whales were either driving or anticipating the rally. Even as prices declined after peak, accumulation continued, indicating long-term bullish expectations. However, from mid-August, the trend began to shift. XRP holdings among whales reached a local peak of 6.74 billion, then accumulation started to taper off. This caused XRP price to consolidate and fail to break higher, early signs of distribution or a cautious stance among large holders.

In a striking development, XRP reserves on Coinbase have plunged 90%, according to recent exchange data. This mass exodus of tokens from the exchange has led some analysts to warn of a potential supply crunch. The long/short ratio remains heavily skewed towards longs on platforms like Binance and OKX. If current momentum holds, and the $2.96 support holds firm, XRP could stage another leg up. Analysts speculate that this dynamic—paired with the declining exchange reserves—could push XRP toward the $10 mark in the long run.

Enosys announced the upcoming launch of a new product called Enosys Loans, described as the first collateralized debt position protocol to leverage XRP as collateral for minting a stablecoin. The platform will operate on Flare, a layer-1 blockchain network that integrates smart contracts and decentralized data oracles. Flare Network has launched an XRP-backed stablecoin via the Enosys protocol, aiming to enhance XRP's utility, marking a new chapter in decentralized finance. The launch of the XRP-backed stablecoin positions XRP prominently in DeFi, potentially driving increased demand and integration within digital economies, with notable industry interest from institutional players. This launch is expected to impact market dynamics, attracting both investors and developers. It enables XRP holders to mint stablecoins without selling their assets, thus preserving cryptocurrency value and expanding its market use cases. Hugo Philion, CEO of Flare Network, stated, "This allows the coin to be used in the digital economy." Financial implications include increasing XRP demand as the primary collateral for minting stablecoins. This could lead to enhanced on-chain activity and liquidity, potentially setting a new precedent in the cryptocurrency sector. This event is likely to have widespread effects on decentralized finance markets, especially where XRP is a predominant player. The use of innovative CDP technology could set a standard for other blockchain projects looking to introduce similar stablecoin initiatives. Potential outcomes encompass increased network interactions, reflecting on Flare's DeFi engagements. Historical trends within the Ethereum ecosystem suggest cross-chain stablecoin issuance could boost XRPL's standing, encouraging further financial product developments.

In a landmark development for the cryptocurrency space, the UK’s Financial Conduct Authority has officially recognized XRP as a utility token. This decision positions XRP in a favorable regulatory light, potentially paving the way for broader adoption and increased market activity. Utility tokens, unlike securities, are designed primarily to provide access to a platform or service rather than serve as an investment vehicle. By classifying XRP as a utility token, the FCA is signaling that the digital asset is not subject to the same stringent regulatory requirements as securities. This distinction is crucial for exchanges, institutional investors, and retail traders, as it reduces compliance hurdles and enhances operational clarity. This regulatory clarity in the UK strengthens investor confidence and opens doors for new partnerships and technological adoption. Therefore, the FCA’s recognition bolsters XRP’s role in shaping the future of digital finance. Ripple, the company behind XRP, has championed a functional, widely accepted digital payment network, and this regulatory acknowledgment aligns with its mission to enable seamless, compliant cross-border payment. Meanwhile, the FCA plans to formally regulate cryptocurrency businesses in 2026, adopting a framework tailored to digital assets rather than traditional markets. The approach will relax certain conventional requirements while strengthening others, aiming to address the unique risks of crypto trading effectively.

Japan’s SBI Shinsei Bank and SBI Securities have announced the launch of “SBI Hyper Deposit,” a new settlement-only deposit service designed to automate fund transfers between banks and securities accounts. The service will enable customers to seamlessly move money between SBI Shinsei Bank and SBI Securities, offering a higher interest rate than existing ordinary deposits at SBI Shinsei Bank. This marks an incremental shift toward deeper integration of traditional banking systems with digital finance solutions. According to the official announcement, SBI Shinsei Bank plans to implement a variety of measures, including giving XRP exchange coupons to customers who set up an SBI Hyper Deposit account. By linking a conventional financial product to a cryptocurrency incentive, SBI adds a new dimension to its long-standing support of XRP and introduces the market to a broad range of new users, potentially increasing its adoption. Automating these functions also reduces friction for clients who invest through SBI Securities. SBI’s decision to reward customers with XRP exchange coupons reflects its ongoing collaboration with Ripple and its commitment to driving real-world utility for XRP within Japan’s financial ecosystem. This approach could help normalize the use of digital assets among customers who primarily interact with traditional bank products. XRP’s adoption is growing rapidly in Japan, and by integrating XRP incentives into a mainstream deposit service, SBI introduces the asset to a larger base of everyday savers and investors, thereby potentially increasing interest and familiarity with the token.

The regulatory environment surrounding XRP has experienced significant positive shifts recently. A major development is the joint regulatory framework established by the U.S. Securities and Exchange Commission and the Commodity Futures Trading Commission. This framework specifically addresses the oversight of digital asset derivatives and provides a clearer pathway for approvals concerning products associated with certain assets. Further bolstering institutional confidence is the prediction made by the CEO of Ripple regarding the approval of a spot exchange-traded fund. Ripple CEO Brad Garlinghouse has publicly stated that such an approval is viewed as an inevitable event expected before the conclusion of the current year, driven largely by increasing demand from institutional investors. This prediction aligns with actual market activity, as the launch of the first U.S. spot ETF saw record-breaking activity on its debut. Reports indicate this new financial instrument achieved the largest natural trading volume for any similar product launched in the year on its first day of operation. Adding to the optimistic outlook are predictions from certain artificial intelligence models regarding XRP's future trajectory. For instance, the model Grok has suggested the potential for significant appreciation by the end of the year, citing key regulatory catalysts and observing patterns in historical year-end market behavior. Simultaneously, other market observers suggest a potentially bullish future based on recurring technical market patterns. Some analysts point to fractal patterns as an indication of potential appreciation, projecting possible targets into the later part of the year if the current technical setup remains favorable. The dismissal of a major lawsuit concerning the classification of XRP is frequently cited alongside these regulatory developments and the joint oversight framework as pivotal events contributing to the improved sentiment and perceived stability around the asset. Beyond regulatory clarity and ETF developments, the potential for wider institutional adoption continues to be a major theme. The inclusion of XRP within existing diversified investment vehicles, like the Grayscale Digital Large Cap Fund, is seen as a step validating its status and broadening its reach to institutional participants.