XRP Price Lags Utility as Ripple's Infrastructure Gains Momentum
3min read XRP's latest price was $2.19, down 0.56% in the last 24 hours. The cryptocurrency has been a cornerstone of Ripple’s payment infrastructure for years, prized for its speed, scalability, and minimal transaction costs. However, its market value has remained relatively stagnant, leading many investors to question why its utility has not been reflected in its price. The answer lies in the mechanics of how XRP is currently being used by institutions. A significant volume of XRP transactions, particularly those involving banks and large financial institutions, occurs over-the-counter (OTC). This method allows entities to trade large quantities of XRP directly, bypassing public exchanges. As a result, even though XRP facilitates substantial value transfers across borders, that demand does not translate into visible price pressure on the open market. In essence, XRP is being used, but that usage is invisible to everyday traders and investors.
What makes this moment pivotal is what’s on the horizon. Ripple recently acquired prime brokerage platform Hidden Road, a firm responsible for moving over $3 trillion in yearly volume. If even a modest portion of that transactional flow begins to route through the XRP Ledger (XRPL) in a public, exchange-visible manner, the resulting demand could shift the price dynamics dramatically. The broader crypto market is also anticipating a shift in how institutional investors can access XRP. Analysts now estimate there is an 85% chance of an XRP futures ETF being approved in 2025. Should this materialize, major financial players would be able to gain exposure to XRP through regulated investment vehicles. Such developments historically result in massive liquidity increases—an essential ingredient for upward price movement. The role of speculation here cannot be ignored. Traders are well aware of XRP’s growing list of partnerships, CBDC initiatives, and now the possibility of ETF listings. Speculation is the bridge between utility and price. That bridge is being built right now.
A key distinction highlighted is the difference between XRP and other digital assets like Bitcoin. While Bitcoin is primarily viewed as a store of value, XRP is rapidly evolving into a financial infrastructure. Teucrium’s CEO recently asserted that XRP’s real-world utility already surpasses that of Bitcoin. As markets mature and move toward utility-driven value assessments, assets like XRP that serve a tangible function may begin to see their prices better reflect their significance. This is further underscored by the growing belief that liquidity drives network value. As XRP becomes increasingly critical to global payment systems and on-chain liquidity improves, market forces will eventually align price with utility. One of the most commonly cited critiques of XRP is that Ripple could still operate without it. While technically true in today’s OTC-dominated environment, such logic breaks down as more use cases begin to leverage public rails. As institutional demand starts appearing on public markets, XRP’s utility will become more visible, and its price will no longer be insulated from that activity. All indicators suggest that XRP may be nearing a tipping point. With infrastructure, regulatory clarity, institutional momentum, and speculative interest all converging, the disconnect between XRP’s real-world utility and its market price looks increasingly unsustainable. XRP’s price is lagging utility. That gap won’t last forever. The world is slowly starting to value utility. XRP might just be the first to prove: Real use equals real price movement.
Ripple has executed its routine monthly unlock of 1 billion XRP tokens from escrow for May, which could introduce fresh price swings for the cryptocurrency. On-chain data indicates that the unlock, involving XRP worth approximately $2.2 billion, occurred in three separate transactions on May 2. Ripple first unlocked 200 million XRP to its Ripple (26) address. A minute later, it released another 300 million XRP to the same address. At 22:31 UTC, 500 million XRP was unlocked to a separate address, Ripple (27). Despite the large volume, Ripple’s monthly 1 billion XRP unlock is part of a long-standing, scheduled strategy to manage supply with minimal historical market impact. Since 2017, Ripple has placed 55 billion XRP in escrow to ensure transparency and predictability, addressing concerns over market flooding. Monthly, 1 billion XRP is released to support operations, ecosystem growth, and liquidity for ODL (On-Demand Liquidity) services. Typically, 700 to 800 million XRP is re-locked, with the rest used for expenses, institutional sales, or partnerships, maintaining a balance between liquidity and price stability. Past unlocks have not consistently led to significant price drops. For instance, despite the previous unlock, XRP rallied, exiting its extended consolidation below the $2 mark. The price has mainly been influenced by other fundamentals surrounding the token, with the regularity outlook and broader market sentiment playing key roles. With the Ripple and SEC case nearing a conclusion, XRP has failed to make notable gains and is instead relying on general market sentiment and hype.
With the SEC’s legal efforts concluded, Ripple will now focus on resuming normal operations and advocating for clear legislation. The importance of stepping away from litigation and returning to business, while helping to shape the future of crypto regulation in the U.S. This includes working with lawmakers to promote a policy framework that protects consumers and the broader financial system while supporting innovation. Ripple will “clean up the mess” caused by years of legal uncertainty and plans to contribute to crafting smart regulations that protect customers, preserve the market’s integrity, and keep bad actors out. This next phase will emphasize collaboration with Congress to develop regulatory clarity for digital assets. As attention now turns to Congress, the focus will be on enacting legislation that supports innovation while protecting consumers.
