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Banks and various international financial institutions are increasingly showing interest in XRP, the cryptocurrency and digital payment system. Nevertheless, the price of the altcoin remains unchanged, leaving numerous investors and analysts baffled.
Whereas some argue that the utilization of Ripple’s private ledger masks XRP’s true value, others ascribe this phenomenon to challenges related to liquidity and market sentiment.
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Private Ledger May Restrict Price Ascendancy
As per DigitalG, a former fund manager based in London, Ripple’s application of a private ledger for institutional dealings might be the reason behind the price stagnation of XRP.
DigitalG contends that banks could be purchasing XRP in large quantities on a concealed ledger rather than the public XRP Ledger (XRPL), thus keeping these transactions away from the public marketplace. This division might elucidate why an increase in adoption hasn’t resulted in heightened prices.
Why doesn’t XRP increase in price when banks globally are acquiring massive volumes, I hear people asking. This is due to the existence of two ledgers. Some financial regulators might deem it deceptive to hide the genuine price of an asset! I speculate the 2 ledgers will align on July 14 pic.twitter.com/a9mt0n1zdD
— DigitalG (@DigitalG15) March 16, 2025
DigitalG anticipates that a merger between the private ledger and XRPL could occur later this year, potentially boosting the value of XRP.
Ripple’s primary objectives in private records include significant transactions among institutions and central bank digital currencies (CBDCs). This arrangement complicates the visibility for banks on how XRP could be utilized across various scenarios, even as it streamlines processes and enhances security for them. Some assert that the lack of transparency could pose regulatory challenges.
Market Sentiment and Liquidity Issues
Other analysts argue that XRP’s price fluctuations result from the overarching dynamics of the market. Black Swan Capitalist co-founder Vandell Aljarrah points out that the demand for liquidity is insufficient to create a supply disruption, even if institutions are utilizing XRP for transactions.
He observes that from July 2024, when it underwent a corrective phase, XRP’s price has persistently fluctuated between $0.52 and $0.56.
Banks’ Embrace of Blockchain Technology Continues to Surge
In the meantime, it has represented a significant advancement for Ripple to establish collaborations with financial institutions. Reports suggest that some of the 30 largest banks worldwide are gearing up to employ Ripple’s settlement technology by partnering with Bitstamp.
With the establishment of RippleNet and On-Demand Liquidity (ODL), both of which necessitate XRP, transferring money across borders has become swifter and more economical.
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Unclear Price Movement
The trajectory of XRP’s pricing remains uncertain at this juncture. Analysts have pinpointed three crucial levels that require close observation: $0.60, $0.63, and $0.66. Should the price surpass these thresholds, it could potentially rise to $0.86 or possibly beyond.
Conversely, if it dips below $0.50, a short-term rebound may be less likely.
Featured image from Gemini Imagen, chart from TradingView