XRP Slides Below $1.30 as Investor Cites $81 B Market Cap Concerns

XRP slipped below the $1.30 threshold on Tuesday, losing 7.3% to trade near $1.31. The decline follows a 23% drop from the recent peak of about $1.68 and reflects broader market headwinds.

Investor Pushback on Valuation

Dubai‑based crypto investor Royal Kane posted on X that he would not invest in XRP at its current valuation, citing the token’s market capitalization of roughly $81.68 billion as too large to generate meaningful returns. Kane argued that assets with smaller market caps offer more upside potential and pointed to narratives around Solana, Pepe and Zcash as examples of compelling investment stories.

Macroeconomic and Regulatory Factors

The Federal Reserve raised its benchmark rate by 25 basis points on September 16, moving the target range to 3.75%–4.00%. Higher rates increase the appeal of yield‑bearing assets and can dampen demand for riskier crypto investments.

In the United States, the Senate failed to invoke cloture on the Digital Asset Market CLARITY Act, with a 49‑50 vote. The legislation, which would have clarified oversight of network tokens, did not advance, leaving the existing regulatory environment unchanged for XRP.

Recent Market Activity

• 24‑hour trading volume: $4.12 billion.
• Year‑to‑date decline: 29.18%.
• August escrow release: Ripple unlocked 1 billion XRP, valued at about $1.38 billion.
• U.S. spot XRP ETFs attracted $153.55 million in August, with $150.28 million in the final two weeks.
• XRP Ledger payment volume surged 521% in one week, driven by larger transfers.

Ripple’s Business Context

Ripple, the private company behind the XRP Ledger, operates products such as Ripple Payments, the RLUSD stablecoin, Ripple Prime brokerage, and custody services. While the company does not publish public quarterly financials, it continues to develop and market these services. Holding XRP does not confer equity or voting rights in Ripple; investors are exposed only to the token’s market price.