Ripple, a leading player in the cryptocurrency space, has seen its infrastructure business experience significant growth in 2026. However, this progress has not been reflected in the price of its native token, XRP. In fact, XRP's price has fallen by over 40% from its January peak, raising questions about the disconnect between Ripple's success and the token's performance.
One key factor contributing to this discrepancy is the way institutions are using Ripple's services. While major partnerships with companies like JPMorgan, Mastercard, and Deutsche Bank have been announced, many of these deals do not involve direct interactions with XRP. Instead, institutions are often using alternative assets, such as RLUSD, a dollar-pegged stablecoin issued by Ripple.
The use of RLUSD has significant implications for the demand and supply dynamics of XRP. Since RLUSD is used as a settlement asset in many transactions, it reduces the need for institutions to hold XRP directly. As a result, the token's price remains relatively low. To close this gap, analysts suggest that regulatory clarity, specifically the passage of the CLARITY Act, could play a crucial role. This legislation would classify XRP as a digital commodity, providing greater legal certainty and potentially increasing institutional willingness to use the token directly.