XRP Price Risks Slide to $1 Amid Slumping XRPL Metrics and Burn Rate

XRP price continued its strong downward trend this week, reaching a low of $1.500, its lowest level since November 2024. Ripple token has slumped by 57% from its all-time high. This trend may continue amid waning XRP Ledger metrics in the DeFi industry and as the burn rate wanes.

XRP Ledger DeFi Metrics and Burn Rate are Waning

Data compiled by DeFi Llama shows that XRP Ledger is struggling in the decentralized finance industry. The network has just 21 protocols and a total value locked (TVL) of $55 million, down by over 20% in the last 30 days. Additionally, the DEX volume in the last 24 hours was $145,820.

These numbers are tiny compared to other large players in the cryptocurrency industry like Solana, Ethereum, and BNB Chain. For example, Ethereum has over $60 billion in total value locked and handled $3.1 million in volume. 

On the positive side, XRPL is doing well in the stablecoin and real-world asset (RWA) tokenization industry. Its stablecoin supply jumped to over $417 million, led by Ripple USD (RLUSD), which has become one of the top stablecoins in the industry.

Data compiled by RWA shows that XRPL has a represented value of over $1.47 billion, a 271 increase in the last 30 days. This growth accelerated on Tuesday as Ctrl Alt tokenized diamonds worth over $129 million. Other top players in the network are Vert Capital, Guggenheim, and JMWH.

Another positive is that Ripple Labs received a Luxembourg license this week. Before that, it received licenses in the UK and other countries. It also received a banking charter in the United States and a money license in the EU.

Meanwhile, data shows that the XRP burn rate has slumped in the past few months. Just 335 XRP tokens were burned on February 3. This burn rate has stagnated since August last year, which has not had any meaningful impact on the price.

Demand for XRP ETFs has waned in the past few weeks. These funds shed over $404k on Monday after losing another $92 million on Thursday last week.

XRP Price Prediction: Technical Analysis Points to a Drop to $1

The weekly chart shows that the Ripple price has crashed in the past few months. It has recently fallen in the last five consecutive weeks and is now hovering near its lowest level since November 2024.

The coin is at risk of moving below the Major S/R pivot level of the Murrey Math Lines tool. It has also crashed below all moving averages and is at risk of flipping the neckline of the double-top point into a resistance.

Therefore, the most likely XRP price forecast is highly bearish, with the next key level being the psychological level at $1. A drop below that price will point to more downside to $0.7813, the Strong, Pivot, Reverse level of the Murrey Math Lines tool.