Even If Ripple Succeeds, XRP May Not Rise? A Warning to Investors

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Contrary to expectations that Ripple’s business expansion would soon lead to a rise in its token price, pessimistic outlooks have emerged suggesting that XRP (XRP, Ripple) may underperform the broader market over the next five years.

According to investment media outlet The Motley Fool on February 17 (local time), XRP is currently trading below $1.50 with a market capitalization of approximately $90 billion. Unlike meme coins, XRP is regarded as a token with real utility, designed to process cross-border payments quickly and inexpensively. Ripple has demonstrated its technological capabilities through partnerships with major banks such as Bank of America and Santander.

However, the outlet pointed out a key issue the market may be overlooking. Even if Ripple’s payment infrastructure expands, it does not necessarily translate into increased demand for XRP. Historically, Ripple has operated two core products: RippleNet and On-Demand Liquidity (ODL). Among them, RippleNet—primarily used by large banks—is a messaging-based settlement system that does not directly utilize XRP.

XRP is actually used within ODL. ODL adopts a “bridge asset” structure in which U.S. dollars are converted into XRP and then exchanged into local currencies such as euros. However, ODL is closer to a niche product targeting relatively small institutions, such as fintech firms and remittance companies facing liquidity constraints. Moreover, because XRP purchases and sales occur almost simultaneously during transactions, it is difficult to generate sustained large-scale demand, critics note.

The rise of stablecoins is also cited as a variable. In traditional finance, stablecoins are rapidly establishing themselves as alternatives that offer both efficiency and price stability. Ripple is reinforcing its strategy of promoting its own stablecoin, RLUSD, including through acquisitions such as RAIL in a $200 deal. The company’s official website also emphasizes stablecoin payment integration, suggesting that RLUSD could eventually replace XRP as the bridge asset within ODL over the long term.

While the outlet assessed that Ripple is likely to grow further as a payment infrastructure company over the next five years, it concluded that such success may not directly benefit XRP holders. Ripple’s business success and the appreciation of its token value may be separate issues, and XRP could underperform the market average—or deliver even weaker returns—over the next five years.

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