Ripple's Growth Fails to Boost XRP Prices Amid Record-Setting Escrow Releases
Ripple's business is growing rapidly, but its native token XRP remains nearly 72% below its 2025 peak. The company has been expanding its ecosystem, launching new platforms and attracting banks to the XRP Ledger for cross-border payments.
However, despite this growth, XRP prices have not increased significantly. One reason is that banks use the XRP Ledger to settle transactions almost instantly, so they don't need to hold large amounts of XRP for long periods.
Ripple also releases millions of XRP from escrow every month, increasing the available supply. Additionally, spot XRP ETFs have attracted about $1.49 billion in total inflows, but their holdings still account for only 1% to 2% of XRP's circulating supply, limiting their impact on price.
Market data shows that XRP's futures market has cooled sharply, with open interest falling by nearly 87%. This large wave of deleveraging removed much of the speculative buying that previously helped fuel rallies. Meanwhile, large investors have quietly bought more than 600 million XRP during recent price drops, but many small investors have sold their XRP after months of little price movement.
According to analyst Chartnerd, XRP could target around $27 by 2029 or 2030, based on both time-based Fibonacci extensions and previous market cycles. The Bollinger Bands are also tightening, a sign that volatility is falling and XRP could remain range-bound before its next major move.