XRP News Today: XRP Price Falls 16% as Payment Volume Drops Below $1 Billion for First Time in Months

XRP’s market dynamics have shifted as on-chain activity and payment volumes indicate a cooling trend, raising concerns about the token’s near-term trajectory. As of July 28, 2025, daily XRP payment volume fell to approximately $986 million, the first time it has dipped below the $1 billion threshold in months [1]. This decline signals reduced institutional participation and broader user engagement, key drivers of XRP’s recent price surges. Concurrently, XRP’s price retreated from a peak of $3.70 to $3.16, reflecting diminished trading momentum amid a broader slowdown in altcoin markets [1].

The drop in payment volume is closely tied to XRP’s price performance. Payment volume, a metric tracking the value of XRP transfers between accounts, is a critical barometer for network health and liquidity. A sustained decline in this metric often correlates with reduced market confidence and trading activity. According to COINOTAG analysis, the current trend aligns with a broader waning of interest in altcoins, with exceptions like Ethereum and Solana still attracting inflows [1]. This divergence highlights XRP’s vulnerability to macroeconomic shifts and competing narratives in the crypto space.

Market experts caution that without renewed liquidity and user engagement, XRP faces the risk of further price corrections. COINOTAG analysts emphasized that regaining institutional support and network activity is essential to avoid a deeper retracement [1]. The token’s ability to re-enter the “billion-dollar club” remains pivotal for sustaining bullish momentum, as prolonged underperformance could push it further out of favor.

The interplay between payment volume and price trends underscores XRP’s reliance on transactional demand. A 16% price decline from its July high coincides with a 2% drop in daily payment volume, suggesting a direct relationship between network activity and market sentiment [1]. This correlation is amplified by XRP’s role as a cross-border payment solution, where transaction volume often drives demand. However, the current slowdown indicates that institutional investors and high-volume traders are scaling back, potentially accelerating the bearish trend.

Looking ahead, XRP’s path will hinge on its capacity to reverse the liquidity vacuum. Analysts note that a resurgence in adoption—either through new institutional partnerships or renewed retail interest—could stabilize the price. Conversely, a failure to attract significant inflows may solidify XRP’s position as a sidelined asset in a market increasingly dominated by layer-1 blockchains. Traders are advised to monitor payment volume metrics closely, as they may serve as an early warning system for deeper corrections or unexpected rebounds.

[1] Source: [1] XRP Activity Shows Signs of Decline Amid Lower Payment Volumes and Market Slowdown (https://en.coinotag.com/xrp-activity-shows-signs-of-decline-amid-lower-payment-volumes-and-market-slowdown/)