XRP News Today: Ripple's $40B Valuation vs. XRP's Stagnant Price – Liquidity Paradox Deepens

Ripple's $40 Billion Valuation and RLUSD Strategy Spark Debate Over XRP's Future

Ripple's recent $500 million funding round at a $40 billion valuation has reignited discussions about the future of XRP, the company's native token. Despite the significant capital infusion and institutional backing from firms like Fortress Investment Group and Citadel Securities, XRP's price has remained stagnant for six months, trading below key moving averages and struggling to gain traction. The disconnect between Ripple's corporate milestones and XRP's market performance has led traders to scrutinize liquidity dynamics, whale activity, and the role of Ripple's expanding stablecoin, RLUSD, in shaping the token's trajectory according to analysis.

The CTO's Bombshell: RLUSD Eliminates XRP Sell-Pressure

David Schwartz, Ripple's chief technology officer, has delivered a pivotal clarification for XRP holders: the company's new revenue streams, including RLUSD, are reducing structural sell-pressure on XRP. Historically, Ripple relied heavily on XRP sales to fund operations, creating a cycle where declining revenue prompted increased token sales, further depressing the price. However, Schwartz emphasized that Ripple's diversified income from enterprise solutions, cross-border payments, and RLUSD now insulates the company from this dynamic according to Schwartz. "Ripple no longer needs to sell XRP to survive," he stated, asserting that the stablecoin and other services strengthen XRP's ecosystem without depleting reserves according to the report.

RLUSD's Rapid Rise and Strategic Integration

Launched in December 2024, Ripple USD (RLUSD) has surged to a $1.02 billion market cap, positioning itself as a regulated, institutional-grade stablecoin. Fully backed by U.S. Treasury bills and FDIC-insured deposits, RLUSD is integrated into Ripple's cross-border payment networks and institutional custody platforms according to analysis. Its adoption by partners like Mastercard, WebBank, and Gemini-where it facilitates credit-card settlements on the XRP Ledger-highlights its role as a bridge between traditional finance and blockchain infrastructure according to the report. Experts argue that RLUSD's growth indirectly benefits XRP by increasing network activity and transaction fees, which burn XRP and reduce supply over time according to experts.

ETF Launches Fail to Ignite Price Action

The launch of the first U.S. XRP ETF by Canary Capital in November 2025 initially seemed like a catalyst for price movement, pulling in $250 million in inflows. However, XRP fell 8–9% within days, underscoring the market's focus on liquidity and macro conditions over ETF-driven demand. A second ETF from Franklin Templeton, set to debut soon, may provide incremental support, but analysts caution that XRP's price remains tied to on-chain volume and whale behavior rather than institutional product launches according to analysis.

Bullish and Bearish Scenarios for 2026

The future of XRP hinges on macroeconomic trends, regulatory clarity, and adoption of Ripple's infrastructure. A bullish case envisions sustained institutional inflows, rising ODL settlement volumes, and regulatory stability driving the token back toward $3.25 and beyond by mid-2026. Conversely, a bearish scenario warns of ETF outflows, macroeconomic stress, and competition from CBDCs pushing XRP below $2. Traders will closely watch monthly settlement data and Ripple's ability to scale RLUSD integrations as key indicators according to market analysis.