‘Don’t Waste Your Time,’ Says Investor About XRP

When an asset’s price falls, many investors begin to see an opportunity. After all, the old saying “buy low, sell high” may sound like a cliché, but it remains one of the most enduring principles in the market.

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With that in mind, some might be looking at XRP (XRP-USD) right now, thinking such an opportunity awaits, given the cross-border payments-focused crypto sits 60% below last summer’s peak.

However, investor Emma Newbery is not among that group. In fact, Newbery believes XRP might be heading lower still and might not bounce back.

“I think XRP’s unclear use case could drive it below $1. If it does, there are no guarantees it will recover,” she opined.

The thing is, unlike many other cryptos, XRP used to have a clear use case – it distinguished itself by having real-world utility. At its 2012 launch, it aimed to serve as a bridge currency, reducing friction and cutting out intermediaries in international payments and money transfers. However, that advantage has diminished, as stablecoins can now perform the same role without XRP’s price volatility.

Meanwhile, Ripple, XRP’s creator, is growing through acquisitions in stablecoins, custody, and corporate treasury services. These moves aim to position Ripple Payments and its other services to meet growing demand from financial institutions adopting blockchain and stablecoin solutions. However, this corporate growth doesn’t directly translate into demand for XRP. Ripple is a private company, and XRP only benefits if it’s integral to the services offered, which is increasingly not the case.

For instance, Ripple Custody provides bank-level security for storing and managing digital assets, but using XRP is optional. Partnerships with Aviva Investors for tokenized funds and settlement deals with Mastercard and Gemini rely on the XRP Ledger, yet XRP itself isn’t essential. Similarly, Ripple Payments’ recent rollout with nonprofits like Water.org, GiveDirectly, and Mercy Corps uses the company’s U.S. dollar stablecoin, RLUSD, for transactions. XRP is limited to covering blockchain fees, which are declining even as Ripple’s operations scale. Overall, Ripple’s business growth is substantial, but XRP’s role in it is increasingly peripheral.

As such, Newbery believes XRP will struggle from here on in. “XRP does have a loyal community and is part of a growing ecosystem,” she summed up. “However, its questionable utility could drag it down further, particularly as geopolitical turmoil reduces investor appetite for risk. To thrive, the token needs to be at the heart of Ripple’s activities, not an add-on.”

Disclaimer: The opinions expressed in this article are solely those of the featured investor. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.

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