XRP Stuck at $1 Amid ETF Inflow Plunge and US Regulatory Limbo
XRP's price has been struggling to break above $1 due to a sharp decline in ETF inflows and ongoing uncertainty around US crypto regulation. Institutional interest in XRP has waned, with ETF inflows dropping over 99% since May as investors await clarity on the US 'Clarity Act'. On-chain activity shows mixed signals, with a recent spike in payment volume quickly reversing.
The UK Treasury's involvement of Ripple in its Wholesale Digital Markets Taskforce to explore blockchain infrastructure for tokenizing wholesale financial markets may provide some relief for XRP. However, upcoming catalysts such as potential progress on US legislation and approval of new XRP Ledger protocol amendments will be crucial in influencing XRP's price and adoption.
Grayscale's XRP Trust sold over $180 million worth of XRP in the first half of 2026 to cover investor redemptions, signaling weak demand. This forced sale led to roughly $34 million in realized losses and left the fund smaller as a result.