XRP News Today: XRP's Legal Battle Ends, But Survival Still Hangs in the Balance

Generated by AI AgentCoin World
Thursday, Sep 4, 2025 6:27 am ET2min read
Aime RobotAime Summary

- SEC ends 5-year legal battle with Ripple, removing regulatory cloud over XRP but analysts remain divided on its long-term viability.

- XRP Ledger's $87.85M TVL lags far behind Ethereum and Solana, with weak derivatives market participation and low DeFi adoption.

- Ripple's EVM sidechain and AMM upgrades show progress, but on-chain activity and enterprise adoption remain insufficient for ecosystem growth.

- XRP trades in $2.81-$2.87 range with 340M accumulation, while ETF approval decision in October could reshape market sentiment.

XRP, the digital asset underpinning Ripple’s cross-border payment network, has been the subject of growing scrutiny from financial analysts and institutional stakeholders. Recent developments, including a protracted legal battle with the U.S. Securities and Exchange Commission (SEC) and ongoing challenges in decentralized finance (DeFi) adoption, have raised concerns about the token’s long-term viability. The SEC recently dropped its appeal against Ripple, ending a five-year legal dispute that had previously cast a shadow over the company and its native asset. Despite this positive development, analysts remain divided on XRP’s future, citing structural weaknesses in its market performance and ecosystem growth [2].

According to DeFiLlama data, the

Ledger (XRPL) has a total value locked (TVL) of just $87.85 million, a stark contrast to Ethereum’s $96.9 billion and Solana’s $11.27 billion. Daily decentralized exchange volume on XRPL remains under $70,000, significantly trailing competitors. TheBlock data further highlights XRP’s struggles in the derivatives market, where futures open interest remains a fraction of Ethereum’s or Solana’s levels. This points to weak institutional participation and a lack of network effects that are typically necessary for attracting developers and large enterprises [1].

Ripple has introduced several upgrades aimed at stimulating XRPL usage, including Automated Market Makers (AMMs) with new liquidity pools, its stablecoin RLUSD, and the launch of a native

on XRPL. Additionally, an Virtual Machine (EVM) sidechain has been introduced to improve compatibility with Ethereum-based applications. However, analysts argue that these developments have not yet translated into meaningful on-chain activity or widespread enterprise adoption. Community figures suggest that growth in the XRPL ecosystem depends more on active project builders than on speculative hype [1].

Technical analysis of XRP’s price movements reveals a mixed picture. The token has been trading in a narrow range between $2.81 and $2.87 over the past 24 hours, with large wallets accumulating roughly 340 million XRP despite significant institutional selling. Total transaction volume on the XRP Ledger more than doubled on September 1, reaching 2.15 billion XRP, signaling increased activity. Analysts remain divided: some point to bullish patterns such as a symmetrical triangle with potential upside toward $7–$13, while others warn of resistance below key trendlines that could signal a continued decline [3].

The regulatory environment remains a critical factor influencing XRP’s trajectory. With the SEC having stepped aside from its legal action against Ripple, speculation is growing about the potential approval of spot XRP ETFs. In July, the SEC approved the ProShares Ultra XRP ETF, which invests in XRP futures. While this has been seen as a positive step, analysts caution that XRP’s lack of decentralization could limit the impact of ETFs compared to

or Ethereum, where institutional adoption has been more robust. A decision on spot ETF approvals is expected in mid-October, and any rejection could further weigh on XRP’s market sentiment [2].

Looking ahead, XRP faces both opportunities and risks. The token’s intrinsic use case in cross-border payments remains strong, but competition from stablecoins and other blockchain networks continues to intensify. Ripple’s ability to attract institutional and enterprise adoption will be critical in determining XRP’s long-term success. In the short term, traders are closely watching key price levels, including $2.82 support and $2.86–$2.88 resistance, with a breakout above $3.00 seen as a potential turning point [3].

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 (Ripple) Plunged Below $3. Buy the Dip, or Run for ... (https://www.nasdaq.com/articles/xrp-ripple-plunged-below-3-buy-dip-or-run-hills)

[3] XRP Symmetrical Triangle Forms Under $3.00, $3.30 ... (https://www.coindesk.com/markets/2025/09/04/xrp-symmetrical-triangle-forms-under-usd3-00-usd3-30-breakout-level-in-focus)