XRP’s price has continued to spiral downward this week, hitting a disheartening low of $1.50, the lowest since November 2024. This plunge accounts for a staggering 57% drop from its all-time high, pushing the cryptocurrency firmly into bear market territory.
Recent data reveals the XRP Ledger is grappling with significant hurdles within the decentralized finance (DeFi) sector. Currently, the network supports 21 protocols, but the total value locked (TVL) has shrunk by over 20% in the last month, settling at a mere $55 million. In stark contrast, Ethereum boasts a TVL exceeding $60 billion, underscoring XRP’s struggles in maintaining relevance in the DeFi landscape.
The decentralized exchange (DEX) volume recorded in the past 24 hours stands at just $145,820, calling into question the competitiveness of XRP against other major networks.
Compounding these issues, XRP’s burn rate has stagnated. On February 3rd, only 335 XRP tokens were burned, marking a flat burn rate that has persisted since August of the previous year. This lack of activity has not provided the necessary support to bolster XRP’s market value.
Resilient Stablecoin Sector Offers Glimmer of Hope
Despite the bleak situation surrounding XRP, there is a silver lining in the stablecoin segment. The supply of stablecoins on the XRP Ledger has climbed to over $417 million, with Ripple USD (RLUSD) emerging as a leading stablecoin within the industry. Such growth represents a positive development, as it showcases the network’s potential to adapt and thrive in certain areas.
Furthermore, the tokenization of real-world assets on the XRP Ledger has seen explosive growth, with the represented value surpassing $1.47 billion—a remarkable 271% uptick over the past month. This surge was propelled recently when the Ctrl Alt project tokenized diamonds valued at over $129 million, with significant contributions from institutions like Vert Capital, Guggenheim, and JMWH.
Ripple Labs has also been proactive in securing its foothold globally, having received a license in Luxembourg and previously in the UK, alongside a banking charter in the United States.
Weak Demand for XRP ETFs
On the investment front, demand for XRP exchange-traded funds (ETFs) has noticeably faltered. On Monday, the funds recorded outflows of $404,000, following a staggering loss of $92 million the previous Thursday. This trend indicates a wane in investor interest in traditional financial products related to XRP.
Technical analysis paints a concerning picture. The token has dropped below all key moving averages on its weekly charts, risking a fall beneath significant support levels. Experts suggest that a slip below the psychological $1 mark could lead to further declines, potentially targeting $0.7813 as the next critical threshold.
New Infrastructure Enhancements Rolled Out
In a bid to revitalize its ecosystem, the XRP Ledger launched its Permissioned Domains feature on February 4, 2026, with overwhelming support from over 91% of validators backing the XLS-80 amendment. This feature introduces controlled environments for participant access, designed to enhance security and efficiency while using shared ledger infrastructure.
The Permissioned Domains framework allows domain owners to dictate user access rules based on credentials, fostering a more manageable participation environment. Though this amendment does not directly alter end-user functionality, it lays the groundwork for future enhancements.
Despite the recent advances in infrastructure, the sentiments surrounding XRP remain tainted by its dwindling price and struggling metrics. As the market faces uncertainty, only time will reveal whether XRP can recover from these setbacks and regain its lost momentum.
