XRP News Today: Institutional Disinterest Puzzles XRP’s Future Amid $2.2 Price Warning

XRP Price May Face Sharp Decline to $2.2, Analyst Warns Based on Technical Trends

Recent analysis suggests that the XRP price could potentially fall to as low as $2.2, driven by broader technical trends and concerns over the token’s market position. This forecast, rooted in a combination of on-chain data and ecosystem developments, highlights growing skepticism about XRP’s ability to maintain relevance in a rapidly evolving crypto landscape. Experts attribute this potential decline to weak institutional interest, limited DeFi activity, and a lack of network effects that could support long-term growth.

One key metric under scrutiny is the total value locked (TVL) in the XRP Ledger (XRPL), which currently sits at approximately $87.85 million, according to DeFiLlama. This figure pales in comparison to leading blockchains such as Ethereum, which has a TVL of $96.9 billion, and Solana, with $11.27 billion in TVL [1]. Additionally, daily decentralized exchange volume on the XRP Ledger is reported to be below $70,000, further underscoring the platform’s struggle to attract meaningful activity. Such data points raise concerns about the token’s utility and appeal to both developers and institutional investors.

In derivatives markets, XRP also lags behind major cryptocurrencies. Open interest in XRP futures remains significantly lower than in Ethereum and Solana, indicating limited participation from institutional players. This dynamic is often seen as a key indicator of a market’s maturity and appeal to larger stakeholders [1]. As a result, the token may find it difficult to attract the kind of network effects that are essential for long-term value creation.

Ripple has attempted to stimulate growth in the XRP Ledger ecosystem through various initiatives, including the introduction of automated market makers (AMMs), liquidity pools, and a stablecoin, RLUSD. The company has also launched an EVM sidechain to improve compatibility with Ethereum-based applications. Despite these efforts, the broader market remains skeptical. A growing number of industry observers, including Swift’s Chief Innovation Officer Tom Zschach, argue that centralized governance models, such as those used by Ripple, are ill-suited to meet the evolving needs of global financial institutions [1]. Instead, many are turning to alternative solutions that offer more neutral, shared governance structures.

Some analysts, however, remain bullish on XRP’s future, citing potential catalysts such as regulatory clarity, banking license approvals, and the introduction of crypto ETFs. Paul Barron, for instance, has suggested that a combination of favorable regulatory developments could drive the price upward to as much as $50 or higher. Others, including XRP holder and digital asset strategist Zach Rector, warn that significant volatility is likely in the near term, with sharp price corrections possible even after strong upward moves. Rector notes that if XRP drops from $3.66 to $2.72, for example, it could be just the beginning of a more turbulent phase [2].

Despite the mixed outlook, the XRP community remains optimistic. Many holders view the token as a long-term investment, particularly due to its role in cross-border payments and Ripple’s ongoing efforts to secure regulatory approvals. Recent developments, such as Ripple’s expanded partnership with Thunes, highlight the company’s commitment to leveraging XRP in global financial infrastructure. By integrating Ripple’s blockchain-powered solutions with Thunes’ global payout network, the partnership aims to improve cross-border payment efficiency and accessibility [3].

As the market continues to evolve, XRP’s ability to compete with faster-growing blockchains will depend on its capacity to attract institutional participation and build a robust ecosystem. For now, however, the technical indicators and broader market sentiment suggest that a significant price correction is not out of the question.

Source:

[1] Now That XRP is Dead, What's Next? Swift Executive Calls ... (https://finance.yahoo.com/news/now-xrp-dead-next-swift-105438346.html)

[2] XRP Price Prediction: Is Triple-Digit Target Incoming? (https://coinpedia.org/news/xrp-price-prediction-is-triple-digit-target-incoming/)

[3] Thunes and Ripple Expand Global Partnership to ... (https://www.thunes.com/news/thunes-and-ripple-expand-global-partnership-to-transform-cross-border-payments/)