What is happening with XRP? Why hasn’t you had your great price explosion? What is missing so that, at least, to quote over 3 dollars?
These are some of the questions that arise when analyzing the performance of the cryptocurrency issued by Ripple Labs.
The questions arise after the company led by Brad Garlinghouse will announce the Signature of agreements With Zand Bank and Mamo, two financial institutions based in the United Arab Emirates.
These agreements were specified after Ripple Labs received a license from the Dubai Financial Services Authority (DFSA) in March, which authorizes him to manage comprehensive global payments for cryptocurrency companies and companies.
In this way, Zand Bank and Mamo will start using Ripple Payments, a business solution of end -to -end payments by Ripple. Its technology allows companies to make faster, more economical and efficient cross -border payments safely.
At this point, it is important to clarify that Bitcoin (BTC) already offer these solutions for cross -border payments, but is not specifically designed for financial institutions (although nothing prevents financial institutions from using it, beyond some regulations). The difference is that Ripple Payments offers a business solution that It complies with strict regulations and allows to operate with XRP o Fíat money, integrating with banks and fintechs systems.
From the firm, they indicated that Ripple Payments currently operates in more than 90 markets, including Dubai, the United States, Brazil, Mexico, Australia and Switzerland, and has prosecuted more than 70,000 million dollars.
However, these advances have not translated into a significant impulse for the price of XRP. It should be noted that The use of cryptocurrency in Ripple Payments is not mandatory. That is, the institutions that adopt the solution can operate without using the asset, which reduces direct demand and limits the impact that expansion or alliances ads have on their price.
This shows that the old promise that XRP would become “the cryptocurrency of the banks” may not be realized, and that the asset still fails to decouple from the general behavior of the market.
A sample of this is what is happening with the price of XRP after Moody’s, one of the main credit risk rating agencies globally, reduced the perspective of the sovereign debt of the United States of “stable” to “negative”, as reported cryptootics.
After the qualification was known, there was an increase in the yields of the United States Treasury bonds, where the 30 -year -old rate exceeded 5 % for the first time since April.
This happens because, When the macroeconomic environment does not offer stability signalsinvestors reduce their exposure to risk assets, such as actions and cryptocurrencies. It is then that they usually transfer their holdings to safer instruments, such as treasure bonds, which generate lower yields but are not exposed to market fluctuations.
In this scenario, the price of XRP fell 3.5% in the last 24 hours. At the time of the publication of this note, the price of the most valuable active room in the market is 2.32 dollars, 30% below its historical maximum (ATH) reached in January 2025.
Institutional growth without impact on the price
Ripple continues to advance in projects with strong institutional approach, such as the pilot who is developing in Colombia Next to Mercy Corps Ventures and the Wëia platform, which promises to improve the financial inclusion of small farmers through agricultural traceability in the XRP Ledger. Although the company highlights this announcement as relevant at the institutional level, its impact on the price of XRP is practically null.
The conclusion is clear: while XRP does not achieve an adoption that requires its use, it will be difficult for isolated initiatives to generate sustained price movements Without a favorable macroeconomic context that accompanies them.
Therefore, the community expects important news, such as the possible launch of the funds quoted in the cash (ETF) of XRP in the United States. As cryptootics reported, several companies have submitted their requests to launch these financial products to the market before the stock exchange and values commission. In the event that the Green Light, this could increase the exposure of cryptocurrency among institutional investors, in addition to attracting more liquidity to the Ripple ecosystem.
Although many investors fully trust that the launch of the ETF will boost XRP, it is important to note that they do not guarantee positive results. An example of this is the ETF of Ether (ETH), the native currency of Ethereum, which so far have failed to match the favorable performance of those of Bitcoin.
Part of the hopes of XRP investors are also deposited in the success of the Stablecoin Ripple Usd (RLUSD), which has 1: 1 parity with the US dollar and operates in the Ethereum and XRP Ledger networks.
The latter is relevant because, if Rlusd achieves greater adoption, the activity in XRP Ledger could increase, which in turn would raise XRP’s demand to meet the commissions. Potentially, that will boost the price of the asset.
However, reality shows something else: Ripple’s stable is still far from becoming a weight actor In this market niche. A sample of this is that its market capitalization is 312 million dollars, far from USDT of Tether and USDC of Circle, whose value is 151.3 billion dollars and 60,000 million dollars, respectively.
Thus, it is clear that this positive news is important to XRP, but those that will really make a difference are macroeconomic conditions. If that does not change, it will be difficult for XRP to quote, at least, above 3 dollars.
