Top Trader: Can Someone Explain To Me Like I’m 3 Why XRP Isn’t Over $100 Already?

Ripple continues to expand its presence across the financial sector, yet XRP has not reached the valuations some investors expect from that growth.

His question focuses on the relationship between Ripple’s institutional expansion and XRP’s market value. Several responses to the post challenged the idea that new bank partnerships alone can drive XRP toward significantly higher prices.

XRP Usage Could Matter More Than Ripple Partnerships

DM Benders explained that XRP needs actual usage to generate the demand that could support a much higher valuation. He said banks have not yet created enough direct XRP usage to justify the expectations surrounding the asset.

“It’s not being used yet. What’s wrong with you folks? It’s pretty simple. XRP is not going to move when you want it to based on news. It’s going to move based on its usage/utility,” DM Benders wrote.

His comment separates Ripple’s business development from XRP’s market demand. Ripple can add financial institutions to its network without those institutions creating significant demand for XRP.

The distinction matters because a bank can use Ripple’s technology without holding XRP for an extended period. Investors therefore need to look at the level of XRP usage alongside Ripple’s growing institutional relationships.

Commenters Point To XRP Utilization And Supply

Andrew Sandler raised several factors that could explain XRP’s current valuation. He mentioned regulatory clarity and Ripple’s monthly escrow activity, noting that the company’s regular escrow releases could limit XRP’s price growth.

Banks May Not Hold XRP Long Term

Rara also challenged the assumption that more bank partnerships automatically create massive XRP demand.

“Banks using RippleNet’s ODL service doesn’t mean they’re gonna stockpile XRP,” Rara said.

The comment points to XRP’s role during transactions. If institutions acquire XRP to facilitate transfers and then quickly exchange it for another currency, that activity can create transaction volume without creating the same long-term holding demand that some XRP investors expect.

Steph Is Crypto’s question therefore centers on an important distinction. Ripple can continue expanding its banking partnerships while XRP follows its own demand dynamics. The asset’s path toward much higher valuations will depend on how extensively institutions use XRP and how that usage affects sustained market demand.