XRP (XRP) has decreased by 8.88% over the past 24 hours.

Gate News Bot Message, February 5th, according to CoinMarketCap data, as of press time, XRP (XRP) is trading at $1.45, down 8.88% in the past 24 hours, with a high of $1.81 and a low of $1.45. The current market capitalization is approximately $88.436 billion, ranking 5th.

The XRP Ledger is a blockchain built for business, led by a global community of commercial and developer stakeholders, dedicated to solving problems and creating value. The network has proven to be reliable, with over ten years of error-free operation. XRP Ledger offers a smooth development experience, low transaction costs, high performance, and sustainability. Its main features include decentralized exchanges, cross-currency payments, payment channels, multi-signature, and token functions. Developers can utilize tools in languages such as Python, Java, Javascript, and HTTP API for development. Additionally, the ecosystem is developing new features like smart contracts (Hooks) and automated market makers, aiming to build green infrastructure and promote blockchain innovation.

Analysis of Recent Key Market Drivers for XRP

1️⃣ Accelerating Institutional-Grade Infrastructure Development and Expansion of Corporate Financial Use Cases

Ripple has launched Ripple Treasury, integrating corporate cash management with digital asset systems, allowing companies to manage traditional funds and digital assets on a unified platform. Cross-border settlement using RLUSD stablecoin typically takes only 3 to 5 seconds, significantly improving efficiency compared to traditional wire transfer systems. The platform also reduces reliance on overseas pre-funding and lowers foreign exchange costs through blockchain payment rails. Ripple plans to connect to repurchase markets in the future, enabling companies to use tokenized assets for short-term liquidity management. This indicates that the application scope of XRP Ledger is expanding from simple cross-border payments to enterprise-level financial management platforms.

2️⃣ Gradual Improvement of Multi-Layered Regulatory Frameworks and Establishment of Investment-Grade Status

In Japan, Ripple plans to reclassify XRP as a “regulated financial product” by Q2 2026, removing it from the crypto asset category under the Payment Services Act and including it under the Financial Instruments and Exchange Act, granting it the same investment-grade status as stocks and bonds. In Europe, Ripple has received preliminary approval for an electronic money institution license from the Luxembourg financial regulator, combined with its existing FCA license in the UK, forming a dual-regulation system across regions. This cross-border, multi-layered regulatory certainty creates conditions for financial institutions to move from pilot projects to commercial-scale deployment.

3️⃣ Upcoming XRPL Permissioned Domain Functionality and Support for Institutional Compliance Needs

The XRPL “Permissioned Domain” amendment has received 88.24% validator consensus and is expected to go live on February 4th. This feature is positioned as a bridge connecting institutional compliance requirements with on-chain liquidity, using credentials and permission mechanisms to address regulatory challenges when using public decentralized exchanges. Community discussions indicate that this infrastructure upgrade will combine XRP Ledger DEX liquidity with Ripple Prime’s institutional-grade ledger settlement capabilities, providing low-risk solutions for financial institutions to trade and settle directly on-chain assets.

4️⃣ Whale Holdings Rebound and Continuous ETF Capital Inflows, Market Confidence Restored

The number of whales holding at least 1 million XRP has increased for the first time since September 2025, with a net increase of 42 wallets this month to a total of 2016, ending a four-month decline. Meanwhile, US spot XRP ETFs recorded approximately $91.72 million in net inflows this month. Historically, related products have accumulated a total net inflow of $1.26 billion, with Franklin XRP ETF XRPZ recording $300 million and Grayscale XRP ETF GXRP recording $234 million. The return of large addresses and ongoing ETF inflows often reflect long-term capital positioning rather than short-term speculation, indicating market accumulation in a low-profile manner.

5️⃣ Executive Strategic Clarifications and Ecosystem Consensus Reinforcement, Reaffirming XRP’s Core Position

Ripple President Monica Long will deliver an important speech at the second XRP Community Day Americas on February 11, emphasizing XRP’s central role in Ripple’s strategy and directly addressing market concerns about whether Ripple is weakening XRP’s position. This aligns with CEO Brad Garlinghouse’s previous statements, clarifying that XRP is a fundamental component of payments, institutional business, and ecosystem development. Meanwhile, intense community discussions around XRP’s real utility are advancing consensus formation. The dual development paths of improved regulation and infrastructure evolution are gradually becoming clearer.

The current short-term correction in XRP price, combined with factors such as whale accumulation, ETF inflows, regulatory improvements, and infrastructure upgrades, presents a contrasting picture, suggesting the market may be in a low-profile accumulation phase. If overall crypto market momentum remains weak, short-term consolidation could persist, but the medium- to long-term foundation is being solidified.

This message is not investment advice; please be aware of market volatility risks.