Top CEO Says XRP Price Weakness Is Temporary

TheCryptoBasic
XRP-0,06%

Oliver Michel, CEO of Tokentus Investment AG, recently commented on the ongoing XRP performance on the German finance channel DER AKTIONÄR TV

He discussed the growing disconnect between Ripple’s business progress and XRP’s market price. Michel acknowledged that XRP’s price action has been weak, noting that the token has fallen from its recent peak. However, he stressed that this decline does not reflect what is happening on the operational side at Ripple.

For context, XRP is trading at $1.85, down 10% over the past month.

XRP Price Out of Sync with Business Performance

According to Michel, Ripple Labs continues to execute strongly, expanding through acquisitions, pursuing regulated banking pathways, and rolling out new products such as stablecoins

He described the Ripple ecosystem as comparable to an “Amazon-style” platform for blockchain and crypto services. To him, the company is exceptionally well-positioned in the long term.

Michel explained the situation using a simple analogy: sometimes business fundamentals lead, and price follows later. At other times, price moves ahead of fundamentals. In XRP’s case, he believes the market is currently underestimating the strength of Ripple’s operations.

From his perspective, this mismatch creates frustration for XRP holders, but it is not unusual in financial markets. He stressed that short-term market conditions often drive price movements, while operational progress plays out over a much longer horizon.

Institutional Demand Adds to the Disconnect

Michel also pointed to institutional interest in the recently launched spot XRP exchange-traded products. These products have recorded steady inflows over an extended period. Specifically, five XRP ETFs have gone live since November, bringing in $1.13 billion in inflows. Their total assets now sit at $1.25 billion.

XRP etf recordsXRP ETF recordsHowever, despite this massive investment, XRP’s price has continued to dip. Michel argued that this trend deepens the mystery surrounding XRP’s price weakness as institutional demand moves in the opposite direction of the market price.

He believes this is a timing issue, not a deeper problem. According to Michel, the growth in institutional and business adoption hasn’t yet shown up in XRP’s price, but that gap could close in the future.

Price Weakness is Temporary

The Tokentus CEO concluded that holders should see XRP’s current price behavior as temporary. He expects that, at some point, the market will reconcile Ripple’s operational success with XRP’s valuation, potentially leading to a sharp repricing once the lag is corrected.

While Michel did not offer a specific timeline, he believes XRP’s weakness is not a sign of failure at Ripple, but rather a delay between business execution and market recognition.

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