XRP Price Falls Below $1 as Emerging Risks Point to More Downside

XRP (CRYPTO: XRP) price dropped below the crucial support level of $1 as the bear market that started in July last year continued. The Ripple-linked token dropped to $0.995, its lowest level since November last year, and 72% below its all-time high. 

XRP Price Drops as ETF Demand and Ripple USD Growth Stalls

The XRP token has dropped sharply this year, underperforming top coins like Bitcoin (CRYPTO: BTC) and Ethereum (CRYPTO: ETH). 

ETF data shows that demand for its funds has continued to wane this year. Funds tracking the token had over $3.27 million this month so far, down from the $27 million they added last month. At their peak, these funds had over $131 million in inflows in May this year.

XRP ETFs have had over $1.51 billion in cumulative inflows, with the current net assets being $933 million. The biggest funds are by companies like BitWise, Franklin, and Canary. 

The fading demand for XRP ETFs is a sign that demand from American institutional and retail investors has faded as the crypto winter has continued. 

Further data shows that demand for the Ripple USD stablecoin has continued to wane this month. The stablecoin, which is crucial to Ripple’s growth, has waned recently, with the market capitalization falling to $1.71 billion from the year-to-date high of $1.81 billion.