After rocketing to highs nearing $3.50 last year, XRP (XRP 1.87%) has fallen below $1.50 as Bitcoin and the broader crypto market slide.
Investors may be wondering if they should jump in and buy the dip. But the current sell-off might not be the real concern for XRP holders; it's possible the dip isn't a dip at all, but a new normal. So, where might XRP be a year from now?
To answer that, we have to look at Ripple, the company behind the token, and its pivot toward stablecoins.
CRYPTO: XRP
Key Data Points
Ripple is all-in on stablecoins
Ripple has spent the past year and change repositioning itself as a stablecoin infrastructure company. Its website now leads with "integrate stablecoin payments into your business." It acquired stablecoin payments company Rail for $200 million. And it launched RLUSD, its own dollar-backed stablecoin, which it's aggressively pushing into the cross-border payments market.
This isn't happening in a vacuum. The Genius Act provided stablecoins with real regulatory clarity, and Ripple is building to capitalize on it. RLUSD can function as a bridge asset within Ripple's cross-border payment products.
That might sound tangential to what we're discussing -- XRP's value -- but it very much is not. It's critically important because XRP has always been the key bridge asset in Ripple's cross-border payment system. RLUSD's adoption cannibalizes XRP's "market share" within its own ecosystem.
Why RLUSD complicates XRP's bull case
XRP's investment thesis has always rested on the idea that growing adoption of Ripple's products would drive demand for the token. That argument was already shaky. Institutions that use XRP for cross-border payments convert in and out of XRP nearly instantly -- every buy order is matched with an immediate sell order, creating little lasting demand pressure.
Image source: Getty Images.
Now layer RLUSD on top of that. It offers institutions a stable, regulated alternative within the same Ripple ecosystem. It combines the best of both worlds for banks that value stability and security above all.
XRP's performance in 2026
Ripple, the company, will probably have a strong year. Its payment infrastructure is proven, and RLUSD is gaining traction. But XRP holders likely won't share in that success.
A year from now, I expect XRP to have underperformed the broader market and have struggled to get back above $1.50. Ironically, it won't be because Ripple failed, but because Ripple succeeded -- just with stablecoins, not XRP.
