XRP remains one of the most controversial cryptocurrencies. Its critics insist on the lack of practical value, while supporters predict a role as global settlement infrastructure. As usual, reality lies somewhere in between.
XRP as Settlement Infrastructure
The XRP Ledger was launched in 2012 with a specific goal: to provide fast and cheap cross-border payments. This sets it apart from Bitcoin, which focuses on decentralized value storage, and Ethereum, which is oriented toward programmable smart contracts.
Transactions on the XRP Ledger close in three to five seconds. The fee is a fraction of a cent. This makes XRP an efficient bridge asset. When converting between two currencies, it acts as an intermediary, allowing users to avoid holding large reserves in foreign accounts.
This specialization defines the structure of demand for the asset—and simultaneously limits it. XRP operates in a specific niche. Not in the broad decentralized finance space and not as a universal reserve asset.
Who Actually Holds XRP
XRP Ledger network statistics in real time: price $1.40, more than 2.8 million transactions, confirmation speed — 3.89 seconds
As of early 2026, the XRP Ledger network has between six and seven million active wallets. Adjusted for custodial exchange accounts and users with multiple addresses, the real audience, according to analysts, is about two to three million people.
The largest category is retail investors. They hold XRP mainly as a speculative asset, betting on the expansion of institutional use and a positive outcome in litigation with the SEC. This base formed the phenomenon known as the XRP Army—one of the most organized crypto communities.
The second significant segment is exchanges. Binance, Bitstamp, Kraken, Uphold, and a number of other platforms use XRP for liquidity management and inter-exchange transfers. The speed and low cost of transactions give XRP an advantage over bitcoin and ether in this role.
The third segment is payment providers. SBI Remit in Japan and Tranglo in Southeast Asia use Ripple’s On-Demand Liquidity system, in which XRP acts as a temporary bridge asset. Money is converted to XRP, instantly crosses the border, and is converted back—without pre-reserved foreign accounts.
Banks Use Ripple, but Not Always XRP
It is important here to distinguish between narrative and facts. Santander, Standard Chartered, and Bank of America do work with Ripple infrastructure. However, most of them use messaging and settlement software—without directly using XRP as an asset.
XRP for liquidity is used specifically by payment providers, not large banks in the broad sense. This is a fundamental difference that often disappears in media interpretations.
At the same time, XRP performs a technical function within its own network. Every account in the XRP Ledger is required to hold a certain number of tokens, and all transactions are paid for in XRP. This creates a basic, structural demand that does not depend on speculative interest.
Transaction Volumes as an Activity Indicator
Transaction volume on the network is one way to assess the real use of the asset, as opposed to exchange trading. At the beginning of 2025, daily transaction volume on the XRP network exceeded $7 billion, which analyst Ali Martinez described as one of the highest figures in several preceding weeks.
South Korean exchanges played a significant role in this growth. On Upbit, daily XRP trading volume reached $1.3 billion. The Korean market traditionally forms a significant share of global XRP volume and often precedes periods of increased volatility.
The growth in network activity coincided with a four-day price rally, during which XRP rose to $2.5, then rolled back to $2.4 amid profit-taking.
The Legal Factor and a Regulatory Shift
For several years, the main structural risk for XRP remained the Ripple lawsuit with the SEC. The lawsuit, filed in December 2020, slowed institutional adoption of the token in the US—a number of exchanges delisted the asset, and major managers refused to include XRP in products.
At the end of January 2026, a closed SEC meeting attended by acting chairman Mark Uyeda again drew attention to the case’s status. Uyeda had previously criticized the practice of regulation through lawsuits—his position suggests a potentially more constructive approach to the crypto industry.
Analysts also noted the removal of references to Ripple from the SEC website in the section on ongoing proceedings. By itself, this is not confirmation of a settlement, but combined with the change in regulator leadership, it creates room for a positive scenario.
Seven Factors Shaping XRP’s Dynamics
Analysts highlight several key events that could determine the asset’s trajectory in the coming quarters:
- The launch of the RLUSD stablecoin by Ripple Labs is seen as the most significant catalyst for the ecosystem. A successful release will create additional demand for Ripple infrastructure and potentially increase functional demand for XRP.
- The new administration’s policy on cryptocurrencies is perceived positively by the market. Donald Trump has repeatedly declared his intention to create more favorable conditions for the industry.
- A change in SEC leadership removes key regulatory uncertainty around XRP. The departure of Gary Gensler, known for his tough stance on cryptocurrencies, reduces the risk of further escalation.
- A decline in Bitcoin dominance below 50% is traditionally accompanied by a flow of liquidity into altcoins. XRP, with its liquidity and infrastructure, has historically been among the first beneficiaries.
- The expansion of banking partnerships in cross-border payments remains a key narrative for XRP—unlike DeFi or smart contract platforms, its value proposition is clear to traditional financial institutions.
- Approval of an XRP ETF would open access to institutional investors who currently lack a regulated instrument for exposure to the asset. Ripple has already filed the relevant applications.
- Finally, a positive outcome in the SEC lawsuit will remove the last major legal risk, which could become the most powerful short-term trigger for the price.
Price Dynamics: What the Levels Say
After breaking out of a multi-year consolidation, XRP showed significant growth. In December 2024–January 2025, the asset traded in the $2.3–2.7 range, periodically testing the psychological $3 mark.
The current structure suggests two scenarios. If it holds above $2.5, the next targets are $2.72 and $3. A break above $3 will open the way to $5, which analysts associate with a positive outcome on the SEC case and possible ETF approval.
If the $2.24 level does not hold, the asset will enter a consolidation phase with a potential test of the $2.0–2.1 zone.
Real Value in a Narrow Niche
XRP is not a universal cryptocurrency and not a decentralized finance instrument. Its real use is concentrated in a specific segment—liquidity for cross-border payments and settlement infrastructure between payment providers.
This is enough to support steady functional demand. But it is not enough for the narrative of a “global settlement currency” promoted by part of the community.
If the regulatory climate continues to soften and Ripple maintains its pace of partnerships, XRP has grounds for structural growth in usage. If legal risks return and institutional adoption slows, the speculative component in the asset’s valuation will come under pressure. The market understands this, which is why XRP is so sensitive to regulatory headlines.
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