XRP Demand Weakens as Institutions Build $4 Billion Tokenized Assets Pipeline

XRP's market position has weakened over the past week, with ETF outflows and declining futures exposure pointing to reduced demand across several parts of the market.

The token's price has fallen about 5% to roughly $1.11, while its open interest in futures has dropped from nearly $3 billion in June to around $2.3 billion by mid-July.

This decline was most evident on Binance, where open interest fell from over $500 million in mid-June to $399 million by July 10, according to CryptoQuant data.

The weakening demand is also reflected in XRPL's user activity, with fewer wallets participating and new wallet creation plummeting to its lowest level since November 2024.

However, other indicators suggest that network activity has become more concentrated among existing users and applications rather than disappearing altogether.

In contrast, institutions are making greater use of XRPL for tokenized assets and settlement, with Evernorth reporting about $4 billion of tokenized real-world assets associated with the network now spanning over 500 products.

This growth gives developers an incentive to make the ledger more suitable for banks, asset managers, and other financial companies, which is why they are focusing on introducing confidential transfers for Multi-Purpose Tokens using encryption and zero-knowledge proofs.