XRP's 50% price decline over the past year masks a paradox: network activity on XRP Ledger is near record highs, fueled by a $785 million stablecoin ecosystem that may be cannibalizing demand for the token itself.
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XRP falls 50% in a year as $785M stablecoin boom siphons demand
XRP's 50% price decline over the past year masks a paradox: network activity on XRP Ledger is near record highs, fueled by a $785 million stablecoin ecosystem that may be cannibalizing demand for the token itself.
XRP fell 50% to around $1.13 over the past year, even as transaction activity on XRP Ledger climbed toward record highs. The flood of stablecoin minting and transfers on the network has created a structural dynamic where users transact without needing to hold XRP.
Stablecoin supply on XRP Ledger has grown to $785 million, with RLUSD and other dollar-pegged tokens driving the bulk of transaction volume, according to DefiLlama data. The stablecoin ecosystem has diverted demand away from XRP itself, contributing to continued price weakness despite elevated on-chain activity.
Network activity on XRP Ledger dropped 50% over two weeks in June, yet XRP's price remained largely stable, according to on-chain data. The muted price response to a sharp decline in usage suggests the token's utility premium — the value derived from being required for transaction fees and settlement — is eroding as stablecoins increasingly serve as the network's primary medium of exchange.
The divergence between on-chain activity and token price raises questions about XRP's tokenomics. If stablecoin usage continues to grow without translating into demand for the native token, the $1.05-$1.10 support area — tested multiple times over recent weeks with weak volume, according to exchange order book data — becomes the market's key line between consolidation and a deeper correction. A weekly close below $1.05 would mark a fresh 12-month low and potentially trigger further selling from momentum-driven funds.
The structural bearish dynamic mirrors patterns seen on other L1 networks where stablecoin activity has outpaced native token demand. Ethereum faced similar questions during the 2022-2023 period as USDT and USDC supply on the network grew without proportional ETH price appreciation, though ETH's role as the gas token for DeFi provided a floor that XRP currently lacks.
This article is for informational purposes only and does not constitute investment advice.
[1] XRP Is Down 50%, and a $785 Million Stablecoin May Be Part of the Problem[2] XRP drifts toward $1.10 support as traders await break from three-week range[3] Ripple Price Forecast & Predictions for 2026, 2027, 2028–2030 and Beyond[4] XRP price steadies amid falling network activity and mixed market sentiment, eyeing key breakout zone.[5] XRP Price Prediction For July 23
