Ripple's XRP Faces Structural Issues Amid Market Volatility

XRP is a bridge currency designed for the Ripple Payments network, which enables banks to execute fast and low-cost international transactions. Despite its use case, XRP faces challenges that may hinder its growth potential.

The token's value has dropped by 61% since its record high in July last year. Historically, XRP has struggled to maintain its value after setting a new record, with the exception of 2024 when it reached $3.65 per token. However, this may not be indicative of future performance.

XRP's volatility and lack of consistent demand from Ripple Payments are contributing factors to its potential downfall. The cryptocurrency market's uncertainty also plays a role in its decline during sell-offs.