XRP Price Plummets 69% to $1 Amid Regulatory Headwinds

XRP's price has declined significantly, reaching as low as $1 on August 12, marking its lowest daily close since November 2024. This decline represents a roughly 69% drop from its January 2025 peak near $3.30.

Despite the price correction, network activity metrics indicate sustained usage within the ecosystem. Active addresses averaged around 35,700 per day in August, up from around 26,400 in July. However, new-user growth remained stagnant, averaging roughly 2,260 per day in August versus 2,270 in July.

The increase in activity is being driven by existing XRP users rather than an influx of new participants. Network usage is rising, but the user base is not expanding alongside it. Evernorth announced changes to its transaction with Armada II as it advances toward a planned Nasdaq listing. The transaction was originally structured when XRP traded around $2.36.

The SEC delayed its innovation exemption for tokenized securities following pushback from the White House and Wall Street regarding its legal foundation. The SEC also cancelled its planned open meeting on Reg Crypto, the proposed fundraising framework for token projects, with no rescheduled date announced. The Clarity Act remains stalled in the Senate with no vote timeline visible.

Spot ETF flows for XRP have shown significant compression. Weekly inflows recorded $14.86 million, $1.01 million, and $2.25 million across four sessions this week, according to SoSoValue data. The entire current week's inflow originated from Bitwise's XRP product alone, while Franklin, Canary, 21Shares, and Grayscale recorded zero flow.