XRP Trades Near 52-Week Low as RLUSD Gains Popularity

The cryptocurrency XRP is trading at a 52-week low near $1, despite its parent company Ripple's success in winning regulatory battles and gaining commodity classification. Standard Chartered predicts that XRP will reach $28 by 2030, but this forecast relies on the token capturing a significant share of cross-border payment volume, which is currently flowing into Ripple's RLUSD stablecoin instead.

The XRP price has been steadily declining since the start of the year, and its value is now down over 50% from last year's high. While some analysts predict that institutions will eventually drive up demand for XRP, others warn that the token may continue to fade into the background as RLUSD takes on more importance.

The $28 forecast by Standard Chartered relies on several assumptions, including the passage of the CLARITY Act, which would classify XRP as a commodity and give institutions legal cover to invest in it. Additionally, XRP ETFs have pulled in over $1.47 billion since launching, and continued inflows could drive up demand for the token.

However, the growth of RLUSD has been a major drag on XRP's price, as institutions are increasingly opting for the stablecoin instead of holding XRP. Ripple still holds around 33 billion XRP in escrow, which is released at a fixed rate every month, and this could continue to put downward pressure on the token's price.