Banks and other global financial organizations are becoming more interested in XRP, the cryptocurrency and digital payment system. However, the price of the altcoin has not changed, leaving many investors and analysts perplexed.
While some contend that the usage of Ripple’s private ledger conceals XRP’s actual value, others attribute this to issues with liquidity and market sentiment.
Private Ledger May Be Limiting Price Growth
According to DigitalG, a former fund manager in London, Ripple’s usage of a private ledger for institutional transactions may be the reason why the price of XRP has been stagnant.
DigitalG asserts that banks might be acquiring XRP in substantial volumes on a concealed ledger instead of the public XRP Ledger (XRPL), keeping these transactions out of the public market. This separation could explain why increased adoption hasn’t translated into higher prices.
Why doesn’t XRP rise in price if banks around the world are buying huge volumes, I hear people say. It’s because there are two ledgers. Some Financial regulators could suggest it’s dishonest to conceal the true price of an asset! I suspect the 2 ledgers will converge on July 14 pic.twitter.com/a9mt0n1zdD
— DigitalG (@DigitalG15) March 16, 2025
DigitalG believes that later this year a merger between the private ledger and XRPL could take place, which could jack up the value of XRP.
Ripple’s main goals in private record are defined by large-scale transactions between institutions and central bank digital currencies (CBDCs). This configuration makes it more difficult for banks to see how XRP could be used in different situations even if it simplifies things and boosts security for them. Some argue that lack of openness might lead to problems with regulation.
Market Sentiment And Liquidity Challenges
Other observers say XRP’s price oscillations are caused by the general dynamics of the market. Black Swan Capitalist co-founder Vandell Aljarrah says there isn’t enough demand for liquidity to cause a supply disturbance even if institutions are utilizing XRP for transactions.
He notes that from July 2024, when it was in a correction phase, the price of XRP has been continuously ranging between $0.52 and $0.56.
Banks’ Adoption Of Blockchain Technology Continues To Grow
Meanwhile, it has been a big step forward for Ripple to form relationships with financial institutions. Some of the 30 largest banks in the world are apparently planning to use Ripple’s settlement technology by teaming up with Bitstamp, according to reports.
Along with the creation of RippleNet and On-Demand Liquidity (ODL), which both require XRP, it has become easier to send money across borders more quickly and cheaply.
Price Trajectory Unclear
The future of XRP’s pricing is also unclear at this time. The three key levels that analysts have identified as needing close attention are $0.60, $0.63, and $0.66. If the price manages to break above these levels, it could surge to $0.86 or perhaps higher.
If it falls below $0.50, on the other hand, a short-term rebound might be less likely.
Featured image from Gemini Imagen, chart from TradingView
