60% evaporated from its peak… Investors 'shocked' by warning of XRP falling below $1 in 5 years

▲ XRP/ChatGPT generated image ©

Despite major positive news such as the conclusion of its lawsuit and the launch of a spot ETF, XRP (Ripple) has plunged 60% from its peak, deepening investors' concerns. Amidst this, a sober analysis has emerged suggesting that Ripple's business scalability could actually be detrimental to the token's price.

According to investment specialized media The Motley Fool on May 10 (local time), XRP peaked in July 2025, surpassing $3.50, but has now retreated to around $1.40, lower than before the lawsuit was resolved. Even with the launch of seven XRP spot ETFs, including Canary Capital, attracting over $1 billion in capital, the price decline could not be stopped. This is attributed to a disconnect between Ripple's core business structure and token demand.

The media pointed out a serious flaw in the 'bank adoption' hypothesis, which is central to the bullish case for XRP. RippleNet, Ripple's most popular product, is primarily used by large banks but does not directly utilize XRP, thus not creating upward price pressure. In contrast, the On-Demand Liquidity (ODL) service, which uses XRP, has relatively low transaction volumes and is mainly operated by fintech companies, limiting its market impact.

Furthermore, the emergence of RLUSD, a stablecoin issued by Ripple itself, is further narrowing XRP's position. Designed to maintain a value of $1, RLUSD has emerged as an attractive alternative to XRP for institutions seeking to avoid volatility risk. As institutions no longer have a reason to use volatile XRP for cross-border remittances, a paradoxical situation is unfolding where Ripple's infrastructure business thrives, while the XRP token itself is shunned.

The outlook for the next five years is also not bright. While Ripple has a high probability of growing significantly as a payment infrastructure company, its success will not necessarily lead to an increase in XRP's price. The reasoning provided is that the product lines actually used by banks do not align with XRP's utility, and Ripple's own stablecoin is absorbing institutional demand.

In conclusion, the media predicted that XRP would find it difficult to reach the target prices expected by optimists. While the characteristic fluctuations of the virtual asset market will repeat, the media's sober assessment is that XRP's price is likely to trade below $1 in five years.

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