XRP Slides Further as Stablecoin Thesis Gains Traction

XRP dropped 3.74% to $1.39 on March 22, sitting 62% below its July 2025 record high of $3.65. The selloff reflects broader market weakness tied to U.S.-Iran geopolitical tensions, rising oil prices, and shrinking expectations for Federal Reserve rate cuts — conditions that have broadly pressured risk assets including cryptocurrencies.

One of the clearest signs of fading momentum is the 75% collapse in XRP open interest from its peak. Binance remains the only exchange sustaining notable derivatives volume, and while leveraged positions continue to unwind, conviction-driven spot buying has yet to fill the gap. This signals a market still searching for direction rather than one building a base.

Despite the price weakness, a compelling structural argument is drawing renewed attention. Financial commentator Jake Claver recently pointed out that each bank launching its own stablecoin effectively creates an isolated liquidity pool. As these proprietary digital currencies multiply, so does the need for a neutral bridge asset to move value between them seamlessly — a role Ripple designed XRP to fill from the start. Rather than threatening XRP, stablecoin proliferation could directly increase demand for the token as a cross-currency settlement layer.

Institutional momentum around XRP continues building quietly behind the scenes. Evernorth Holdings filed an S-4 with the SEC on March 18, pursuing a Nasdaq listing under the ticker XRPN through a SPAC merger. The company holds 473 million XRP worth approximately $685 million, with backing from Ripple, SBI Holdings, and Pantera Capital — signaling that long-term investors remain engaged at the infrastructure level.

The central question heading into Q2 2026 is whether real on-chain demand will validate the stablecoin interoperability thesis. The widening gap between declining price action and expanding institutional infrastructure defines the tension shaping XRP's outlook right now.