This previous Monday, 22nd of September 2025, was a tumultuous time for cryptocurrencies. Over $1.5 billion was liquidated, triggering a domino effect of sell-offs. This saw the crypto market plunge, with major cryptocurrencies losing large amounts of value. XRP did not go untouched and followed suit with heavy price changes. So what factors fed this downward spiral, and is it a dip investors should consider buying?
A Juxtaposition in Economic Data
Last week started quite positively for cryptocurrencies. Both stocks and crypto rose. Binance noted that Bitcoin managed to reach past the $116,000 mark ($117,858) with Ethereum breaking the $4500 levels. All of this was fueled by U.S. rate cut expectations. However, by Monday, 22nd of September 2025, this had changed drastically. Bitcoin dropped from its $115,779 highs on Saturday to lows of $112,404 by Monday. It was not only the major coins that did so, either. The XRP to INR price dropped from ₹263.58 on Friday, 19th September to about ₹261.95 by Monday, 22nd September. Similar patterns were also seen in Solana and Avalanche.
One factor that contributed heavily has been the continued juxtaposition of economic data. This has caused major uncertainty in markets, with investors unsure if they should be holding onto or buying riskier assets. According to crypto exchange Binance U.S., Producer Prices fell 0.1% while Consumer Prices rose 0.4%. They described this as the sharpest divergence in years during their weekly market commentary. This means that the value of goods sold by producers fell, while in the second instance, the price for buying goods had risen.
Binance also added that the Bureau of Labor Statistics revised employment data and placed it down by 911,000. This implied near-zero payroll growth over four months. All of this put a damper on the much-anticipated rate cuts that people had expected from the FED.
Long-Term Future of XRP
XRP has been one of the best-performing cryptocurrencies this year. It had risen 400% from September 2024 to September 2025. This was partially due to the resolution of an issue between its parent company, Ripple, and the US Securities and Exchange Commission. This was resolved just as cryptocurrencies in general began their upward trajectory. However, after this, it began to stagnate. It has currently faced a 30-day decline where over 7% of its value has been lost, which was made worse by last week’s cryptocurrency lull.
One factor that could push XRP to new heights, and one that could see it buck the downward trend, is its application to charter Ripple National Trust Bank with the Office of the Comptroller of the Currency — the filing is public, but the charter has not been granted. This is a federal license to provide financial services like investment management and, crucially, allows the company to provide payment facilitation. It would allow Ripple to oversee its clients’ money without the use of a traditional bank or financial management. However, as a trust bank, it is not a retail or commercial bank and would not be allowed to accept deposits or provide loan services.
As a financial tool, one factor potential XRP investors should watch is the transition to stablecoins. Ripple themselves have begun to move into this sector. It has RLUSD and has begun to invest in cross-border payments technology. This included collaborations with Chipper Cash and Yellow Card — RLUSD’s market capitalization / issuance has reached roughly US$700 million, supporting its rollout in new markets.
XRP and Stablecoin Usage
However, rising use of these could signal the downfall of XRP itself, rendering its primary use as a cross-border currency dated. Binance Research reports that USDe grew over 43.5% in August to reach US$12.2B in supply, lifting its share of the ~US$280B stablecoin market to over 4% and making it the fastest asset to surpass US$10B (achieving that milestone in 536 days). This makes it a contender for XRP’s growth crown.
With the legal battle over, XRP can also no longer blame stagnation or lack of adoption on those issues. In many ways, this leaves it rather exposed. This means that its growth is largely subject to new developments in its ecosystem and increasing mainstream adoption by financial institutions.
However, not all is doom and gloom. Gold hit a new all-time high, up 2.76% in a week. Safe assets such as this are usually sought out in times of economic turmoil. Binance noted that gold rallies often precede Bitcoin gains by 10 weeks, which could spell potential upcoming crypto strength, not just for Bitcoin but also the major altcoins.
Conclusion
XRP is at a critical juncture. It needs to remain relevant and fulfill its goals as a borderless payment method. However, if its own company is looking to alternatives, they may offer a better chance of short-term gains. If macroeconomic conditions improve, then its price may naturally rise, but until these are resolved, it seems XRP may be held at current levels.