XRP's 70% Decline Post-$3.65 Peak: Fundamental Growth vs. Market Correction
Ripple's corporate advancements contrast sharply with XRP's price action, raising questions about token demand drivers.
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Executive summary
One year ago, XRP experienced a significant price surge, peaking at $3.65 on or around July 18, 2023, according to CoinGecko data. This rally followed a period of positive market sentiment and anticipation around Ripple's ecosystem. However, the token's momentum proved unsustainable, leading to a sharp decline. Over the subsequent twelve months, XRP has fallen approximately 70%, trading at $1.08 as of press time.
This price action occurred despite substantial corporate advancements by Ripple Labs. Key developments include the acquisition of Hidden Road for $1.25 billion, the launch of Ripple Prime, initial approval for Ripple National Trust Bank, and securing a MiCA license in Europe for regulated crypto services. Furthermore, the first XRP ETFs were approved in the US in November 2025, indicating growing institutional interest. These fundamental achievements represent one of the most successful years for Ripple from an operational and regulatory perspective.
The stark contrast between Ripple's fundamental growth and XRP's depreciating market value raises critical questions for investors. It suggests that factors beyond corporate development, such as broader market conditions, liquidity, and speculative demand, are heavily influencing XRP's price. The market appears to be pricing in a different narrative than the one presented by Ripple's expanding business operations.
Why it matters
Capital Flows: The primary concern is the disconnect between Ripple's strategic corporate growth and XRP's declining capital inflows. While Ripple's acquisitions and regulatory approvals are designed to enhance its business and potentially increase XRP utility, these actions have not translated into sustained positive price action or significant on-chain capital flows into XRP. The $1.25 billion Hidden Road acquisition, for instance, is a corporate asset, not a direct injection of capital into XRP itself. The approval of XRP ETFs in November 2025 is a positive development for potential institutional capital, but its impact has been overshadowed by broader market sentiment and the token's inherent price volatility.
Liquidity Impact: The 70% price drop from XRP's peak indicates a significant liquidity drain or a lack of commensurate demand to absorb selling pressure. While XRP's trading volume has fluctuated, the sustained price decline suggests that available liquidity has been insufficient to support the asset against prevailing bearish trends or profit-taking. The rebound to $2.60 after the October crash was temporary, and the subsequent loss of the $2 support level points to a weakening liquidity base and increased selling pressure.
Institutional Behaviour: The approval of XRP ETFs in November 2025 is a signal of potential institutional acceptance. However, the subsequent price performance of XRP suggests that institutional capital, if entering, has not been sufficient to counteract broader market forces or has been deployed with caution, focusing on the corporate entity rather than direct token accumulation. Ripple's MiCA license and banking infrastructure initiatives are aimed at attracting institutional clients for its services, which may indirectly benefit XRP, but the direct impact on token price remains speculative.
Market Structure Reaction: XRP's price movement over the past year reflects a market structure heavily influenced by macro trends and speculative sentiment rather than the fundamental utility of the token. The failure to hold key support levels, such as $2, and its struggle to regain momentum, indicates that the market has not fully priced in the positive developments from Ripple Labs. This suggests that XRP's price is more sensitive to general altcoin market sentiment and broader risk-off/risk-on dynamics than to its specific ecosystem growth.
Who Benefits: Ripple Labs, as a company, benefits from its strategic growth and regulatory advancements, enhancing its position in the cross-border payments and digital asset infrastructure space. However, XRP token holders have seen significant value erosion, suggesting that the benefits of Ripple's corporate success are not directly or immediately translating into token appreciation. The narrative of XRP as an institutional asset is challenged by its price performance, indicating that the branding and marketing efforts may be outpacing tangible market demand for the token itself.
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Bottom line
XRP has seen a 70% price decline over the past year despite significant corporate advancements by Ripple Labs, including acquisitions and regulatory approvals. The most likely scenario is continued price volatility with a neutral to slightly bearish bias, as market demand for XRP remains decoupled from its fundamental growth. The primary risk is a further breakdown below the $1.00 support level, which could signal a more pronounced bearish trend. Key indicators to watch include XRP ETF flows and broader market sentiment towards risk assets.
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Evidence & Sources
How we reached this analysis — traceable to verifiable data, not model guesswork.
- Primary source
- CryptoPotato
- Track record
- Graded against the real market move when we still published forecasts. We stopped — see how we work now. .
- AI confidence
- 65/100 — an estimate, not a guarantee.
- Published
- Jul 17, 2026 · accuracy last checked Jul 24, 2026
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