XRP has continued to decline alongside a broader downturn in cryptocurrency prices, with the total market losing over $1.3 trillion since October.
Over the past three months, XRP has fallen more than 30%, weighing on market sentiment even as some argue the token’s purpose extends far beyond short-term price movements.
Retail vs. Institutional Perspectives
According to health and finance commentator Dr. Camila Stevenson, much of the discussion around XRP overlooks how large financial institutions evaluate settlement tools. While everyday traders often focus on charts and quick profits, banks do not. They assess whether a system can handle stress, move large sums reliably, and remain operational during difficult conditions. Stevenson compared this to testing infrastructure, where strength and capacity matter more than the initial cost.
XRP Was Designed for Value Transfer
Based on her recent video discussion, XRP was built to act as a bridge for moving value, not as a speculative asset. With a fixed supply, the token cannot be increased to meet higher transaction demand. Stevenson noted that this leaves price as the only variable to support larger volumes. Analyst XFinanceBull shared a similar view, encouraging observers to think in terms of transaction flows rather than daily price changes.
Price Alone Doesn’t Confirm Utility
Nevertheless, market behavior still plays a significant role. XRP trades in open markets, where speculation continues to influence its price direction. While a higher price may improve efficiency, it does not guarantee adoption. Stevenson pointed out that many institutions operate through custodians, over-the-counter desks, and private agreements. These transactions often occur quietly and may not cause sharp movements on public charts. She warned that sudden price spikes during such positioning would signal instability rather than healthy usage.
The Case for a Higher Price
Stevenson argued that banks moving billions would prefer to use fewer tokens, with each representing more value. This can simplify settlement and reduce the risk of slippage during periods of high activity. Large financial systems tend to fail when money cannot move or settlement slows, not simply when prices drop. In this context, a higher XRP price could support smoother transfers if transaction volumes grow enough to test the system’s limits.
Market Reality Remains Uncertain
Despite the theoretical benefits, clear evidence of large-scale institutional demand is still limited. Regulation, liquidity depth, and reliable access continue to influence whether banks commit significant volume. XRP’s 33% decline in recent months shows how quickly sentiment can shift, even as long-term use cases are debated. The notion that banks prefer a higher XRP price depends on future scale, not current trading patterns.
Frequently Asked Questions
FAQs Banks XRP Price Potential
Beginner Questions
1 What is XRP and why is it different from other cryptocurrencies
XRP is a digital asset and the native cryptocurrency of the Ripple network Its designed primarily for fast lowcost international payments and currency exchanges making it different from assets like Bitcoin which is often seen more as digital gold
2 How could banks make XRPs price go up
If banks and financial institutions start using XRP on a large scale for crossborder payments they would need to buy and hold large amounts of it This increased demand from major players could drive the price higher according to experts
3 What does adoption by banks actually mean for XRP
Adoption means banks would use XRP as a bridge currency to settle international transactions instantly instead of using traditional slower systems like SWIFT They might use Ripples software and utilize XRP for liquidity
4 Is XRP the same as Ripple
No Ripple is the company that develops payment solutions and software XRP is the independent digital currency that can be used within some of Ripples products You can own XRP without any direct involvement with Ripple the company
5 Is this just speculation or are banks actually using XRP now
Some banks and payment providers are testing or using Ripples technology but widespread largescale use of the XRP token itself by major banks is still developing and not yet mainstream
Intermediate Advanced Questions
6 What specific banking problem does XRP solve
It solves the problem of prefunded nostrovostro accounts Currently banks must lock up large sums of money in foreign bank accounts to facilitate international payments XRP can be used as instant liquidity freeing up that capital
7 What are the main risks or hurdles to bank adoption of XRP
The biggest hurdles are regulatory uncertainty banks inherent caution with new technology and competition from other settlement systems and central bank digital currencies
8 Could banks use Ripples technology but NOT use XRP
Yes Many institutions currently use RippleNet Ripples messaging and settlement software without touching the XRP token This is