Why Is XRP Price Down Despite Rising Adoption?

The XRP Ledger (XRPL) has entered a very active phase. New partnerships, stablecoin tests, and more on-chain activity show that Ripple’s network is gaining attention from traditional financial institutions. Mastercard’s involvement and the RLUSD testing have made XRPL one of the few blockchains being explored by regulated global players.

Still, XRP’s price keeps falling. The gap between adoption and price raises questions about why this is happening.

Recent Ripple Partnerships

Mastercard recently partnered with Ripple and Gemini to test RLUSD, Ripple’s U.S. dollar-backed stablecoin, on the XRP Ledger. The news quickly boosted network activity, with new XRP wallets reaching record levels and prices rising 12% between November 5 and 6.

For a short time, XRP’s price reflected its growing use. RLUSD showed that the XRP Ledger can handle regulated, high-value financial transactions, which could help bring it into mainstream finance. But the price rise didn’t last. Gains soon disappeared, showing that positive news alone is no longer enough to move the market.

Broader market sentiment may explain the muted response. Investors have been cautious, favoring safer assets amid concerns over global liquidity and interest rates. Even promising projects like XRP feel the impact of these broader trends.

XRPL Evolution and Tokenomics

Ripple’s leadership has been clear about reshaping the public image of the XRP Ledger. It used to be known mainly for fast, cheap cross-border payments. Now, the network is moving toward decentralized finance, tokenized assets, and innovation that follows compliance rules.

This shift puts XRPL closer to platforms like Ethereum and Solana, where DeFi and tokenized real-world assets are popular. The change has sparked discussion about XRP’s tokenomics. Some say the current supply does not match the network’s growing value. Others suggest adding a fee-burning system like Ethereum’s EIP-1559, which could reduce supply and support long-term price growth.

Analysts have made projections for XRP through 2035 if these changes happen. In those models, scarcity would gradually rise, potentially aligning XRP’s value with XRPL’s expanding applications. This way, the token’s underlying fundamentals would finally reflect its growing adoption. But this is not just a technical change. Ripple must balance institutional users, who value stability and compliance, with retail investors hoping the token will increase in value.

Regulatory Risks Impacting XRP

Despite strong development and new partnerships, XRP’s price has faced persistent pressure. Over the past week, it has fallen more than 11%, trading around $2.20 at the time of writing. This highlights how regulations and economic conditions still outweigh progress on the blockchain.

Ripple recently won a partial legal victory confirming that programmatic XRP sales are not securities, but uncertainty remains over other aspects of its dealings with the SEC. This uncertainty keeps big investors from making long-term moves, even as the technology shows promise.

High global interest rates and cautious markets have also pushed speculative money away from altcoins like XRP. Many traders are waiting for clear regulatory guidance or signs of a broader market recovery.

The paradox is that XRP’s fundamentals are stronger than they have been in years, yet market sentiment has not caught up. It shows that in crypto, psychology often drives value more than the technology itself.

What Does It Mean for XRP?

Recent partnerships and higher activity on the XRPL show Ripple is moving forward. Investors, however, are also paying attention to potential risks. The success of RLUSD, a possible fee-burning upgrade, and the final legal outcome are all important. Until these fall into place, XRP’s price may lag behind the network’s growth. Still, if Ripple can turn adoption into real token value, the current weakness could be temporary.