XRP Down 10% in 1 Week but Ripple's Institutional Adoption Is Growing
XRP (CRYPTO: XRP) has fallen 10% over the past week as analysts point to historically oversold conditions.
Yet, on-chain data points to a growing divergence between RLUSD (CRYPTO: RLUSD) adoption and the altcoin’s price performance.
Ripple’s recent developments point to growing stablecoin adoption pushing its stablecoin RLUSD to nearly $2.5 billion in market capitalization.
Santiment Intelligence sees the nearly $2.5 billion in market capitalization for RLUSD as a sign of the stablecoin’s expanding use in payments, settlement and growing institutional adoption:
- Standard Chartered launched institutional custody for RLUSD on the XRP Ledger through its Dubai branch, allowing eligible institutional clients to hold the stablecoin within regulated banking infrastructure.
- Ripple, Circle and Standard Chartered’s venture arm, SC Ventures, participated in an OKX investment round valuing the exchange at $25 billion before the investment.
- Ripple’s earlier $150 million financing commitment to LMAX was aimed at expanding RLUSD’s utility across institutional crypto markets.
Will RLUSD Growth Boost XRP’s Value?
RLUSD’s growth does not directly increase XRP’s value, as the two serve different purposes, Santiment cautioned.
Greater institutional adoption of RLUSD on the XRP Ledger could indirectly benefit XRP through increased network activity, deeper liquidity and broader ecosystem adoption.
The stronger long-term bullish case rests on expanding network utility and XRP’s potential role as a bridge asset rather than RLUSD’s market cap growth alone.
Despite its recent decline, XRP continues to hold long-term rising support, potentially setting the stage for a recovery.
Crypto trader Cryptollica highlighted XRP’s monthly RSI hitting a 13-year low, deeply negative realized profits and declining unrealized gains as signs of extreme market stress.
The analyst says oversold conditions and prolonged price compression could fuel a strong rebound, although an immediate recovery is not guaranteed.
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