XRP Lags Crypto Rally, Stagnant at $1.08 Amid ETF Disconnect
XRP is missing the broader cryptocurrency recovery as legislative catalysts stall and record institutional inflows fail to support its price.
XRP remains stuck near $1.08, trailing a broader cryptocurrency rebound this month that lifted Bitcoin above $64,000, Ethereum toward $1,850, and Solana to weekly highs. The token is down on the month, cementing its status as one of the worst-performing major digital assets in a year where the overall crypto market is down roughly 30 percent.
The price stagnation is particularly striking given the favorable macroeconomic backdrop. The wider digital asset market caught a bid after a soft inflation report cooled expectations for further interest rate hikes. However, returning capital bypassed XRP in favor of tokens with active catalysts, such as the tokenization narratives driving Ethereum and Solana.
XRP's last significant positive driver was a March commodity ruling, an event that has now fully faded. Institutional investors have shown little interest in buying the dip, even as the token logged its weakest monthly momentum reading in history at the end of June.
This retail and institutional apathy follows a historic disconnect between XRP's price and the success of its spot exchange-traded funds. The ETFs launched in mid-November 2025, pulling in $1.3 billion in their first 50 days. They went more than a month without a single day of outflows, making them the second-fastest crypto ETFs ever to cross a billion dollars.
Despite those record inflows, XRP continued its descent from a July 2025 peak of $3.65. A surprise round of U.S. tariffs on China triggered massive market liquidations, dragging XRP down 45 percent to $2.00 by December. A brief January rally to $2.41—sparked by Ripple securing a conditional national bank charter—proved to be a false bottom, giving way to six straight months of losses.
The most viable catalyst for a reversal is now legislative. The CLARITY Act, which could provide regulatory clarity for the token, is stuck in the Senate over an unrelated ethics dispute. If the bill does not pass before the August 7 recess, it risks slipping into next year's legislative calendar.
