XRP was developed by Ripple to streamline cross-border payments, offering near-instant settlements and reduced FX costs for banks across borders. The network was designed to standardize transactions regardless of existing payment rails, enabling almost instant settlements. Ripple’s XRP was introduced to lower currency conversion costs and standardize each transaction. Despite the intended utility, XRP’s real-world use appears to be fading.
Bridge currencies are not meant to be held long-term; banks that receive XRP typically convert it to their domestic currency immediately. Moreover, Ripple Payments can function with fiat currencies, reducing the necessity of holding XRP. Ripple also launched a stablecoin, RLUSD, on the XRP ledger, which avoids volatility and is better suited for payments; XRP, by contrast, can swing in value, creating potential losses.
XRP’s price dynamics reflect speculative demand; it peaked at $3.65 last July and has since fallen 65% to around $1.26. If the current decline continues, the token could drop to about $0.15 per token, echoing declines seen after prior peaks. History shows the possibility of further downside, and some analysts see XRP drifting toward $1 in 2026, though a deeper drop isn’t out of the question.
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