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XRP Faces Dual Test in September Amid Hawkish Monetary Policy and Institutional Adoption

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The digital asset market's recent turmoil has put XRP's resilience to the test. Following Federal Reserve Chair Warsh's emphasis on maintaining a 2% inflation target, rate expectations shifted overnight, sending shockwaves across the sector.

XRP slipped to $1.34, a 4.3% decline from Monday, while Bitcoin dropped below $78,000 and Ethereum and BNB also felt the squeeze. However, despite this near-term noise, XRP's bigger picture remains nuanced: August was its strongest month since July 2025, with gains of around 31% still intact.

Ripple's institutional pivot is gaining momentum, with CEO Brad Garlinghouse projecting a more than doubling of 2026 revenue. The company has secured partnerships with BlackRock and BNY Mellon centered on the RLUSD stablecoin and processed approximately $16 trillion in transaction volume over the past year through its infrastructure.

The US Senate's scheduled vote on the CLARITY Act on September 15 may serve as a catalyst for XRP's next directional move. Additionally, one billion XRP will be unlocked from Ripple's escrow on September 1, potentially leading to a net supply increase of 200-400 million tokens.

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