XRP continues to trade below $1.60, despite Ripple’s ongoing efforts to expand its network of partnerships with financial institutions worldwide. Crypto analyst Steph Is Crypto recently questioned why these new relationships have yet to drive a significant price increase for the digital asset.
Ripple partnerships and impact on XRP demand
Steph Is Crypto pointed out that after years of deals between Ripple and banks, XRP is still struggling to surpass the $1.60 mark. This observation has reignited a longstanding debate among XRP supporters regarding the connection between Ripple’s business activities and the demand for XRP tokens.
While many investors expect that more banking partnerships should increase interest in XRP, industry participants caution that the relationship is not straightforward. Blockchain enthusiast Rock Daddy emphasized that Ripple’s development as a fintech company is distinct from XRP as a cryptocurrency. He urged users to research the difference before assuming that every Ripple announcement immediately benefits the price of its digital asset.
Some analysts have highlighted that financial institutions can leverage Ripple’s infrastructure — such as Ripple Payments — without being required to purchase or hold substantial amounts of XRP, making the direct link between institutional adoption and token demand more complex than it may initially appear.
A parallel can be drawn to companies providing railway technology: rail operators might adopt the system without needing to buy the company’s own trains. Similarly, banks may use Ripple’s payment solutions for global financial transfers without generating significant demand for XRP itself.
The role of RLUSD and market structure
In recent months, Ripple’s launch of the RLUSD stablecoin has added another dimension to these discussions. For institutional clients transferring large sums, predictability often matters more than exposure to volatile assets. As a result, a dollar-pegged stablecoin like RLUSD may attract greater institutional use for settlement than XRP, further helping Ripple grow its network without necessarily increasing XRP demand.
XRP continues to be used for covering transaction fees within the XRP Ledger. However, these fees are typically extremely low, and even high transaction volumes do not remove a meaningful amount of XRP from circulation.
Meanwhile, tracking broader market movements remains essential for digital asset investors. In the meme token sector, a trending topic can spark millions of dollars in trading activity in just days. For instance, Fomo App reported that a $99 investment in “Niu Lai” transformed into roughly $370,000, illustrating how market timing and token selection can be key. Fomo App integrates token discovery, trading tools, social feeds, and investor rankings, allowing users to monitor both price action and investor sentiment in real time.
Supply and wider market influences
Concerns around XRP’s substantial supply remain another significant factor. Commenter David Stokes noted there are 100 billion XRP units in total, with over 63 billion already circulating and more still subject to periodic releases from escrow. The volume of tokens consumed through transaction fees, he explained, is too marginal to trigger an aggressive supply squeeze.
Broader market influences also continue to play a major role. Analyst LouNovak2 suggested that XRP price trends are heavily correlated with Bitcoin and general sentiment about digital assets, especially as global regulatory and adoption uncertainties persist.
The potential for XRP to break above $1.60 may depend not only on Ripple’s business expansion but also on factors such as increased direct demand for the token, sustained investor interest, and favorable conditions in the broader cryptocurrency market.
