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

• XRP price hit a low of $1.500 this week, marking its lowest point since November 2024, with a 57% drop from its all-time high.

• XRPL’s DeFi metrics show weakness, with only 21 protocols, $55 million TVL down 20% in 30 days, and $145,820 in 24-hour DEX volume.

• Positive developments include $417 million in stablecoin supply led by RLUSD and $1.47 billion in RWA value, up 271% in 30 days.

• XRP burn rate stagnated at 335 tokens on February 3, with no price impact, while ETFs saw outflows of $404k on Monday and $92 million last Thursday.

• Technical analysis signals a bearish outlook, with potential drops to $1 and further to $0.7813 based on Murrey Math Lines.

WEEX Crypto News, 2026-02-04 09:54:14

XRP Ledger DeFi Metrics and Burn Rate Show Clear Weakness

XRP Ledger faces tough times in DeFi, holding just 21 protocols with a TVL of $55 million that’s dropped over 20% in the last 30 days, plus a meager $145,820 in 24-hour DEX volume—numbers that pale against giants like Ethereum’s $60 billion TVL and $3.1 million volume.

We see XRP price action reflecting broader market pressures. This week, the token sank to $1.500, its lowest since November 2024. That represents a brutal 57% plunge from its peak. I survived the 2025 crypto crashes, and patterns like this scream caution. Traders chase alpha, but here, waning XRPL metrics drag everything down. DeFi thrives on liquidity and activity. With only 21 protocols active, XRPL lacks the depth degens crave for high-APY plays.

Compare that to Solana or BNB Chain—they boast massive ecosystems. Ethereum alone crushes with $60 billion locked in. XRPL’s TVL at $55 million? That’s a fraction. It dropped 20% in 30 days, signaling outflows. Users bolt when yields dry up. DEX volume at $145,820 over 24 hours confirms low engagement. No deep order books here, just thin liquidity prone to slippage during trades.

I check these metrics daily as a strategist. TVL measures capital committed to smart contracts—it’s the lifeblood. Low TVL means fewer opportunities for lending, borrowing, or yield farming. XRPL struggles because it hasn’t built the same protocol diversity. Ethereum has thousands of dApps; XRPL sits at 21. That limits innovation. Developers flock where users are, creating a vicious cycle.

Burn rate adds to the pain. Data reveals just 335 XRP tokens burned on February 3. This rate flatlined since August last year. Burns reduce supply, theoretically boosting price through scarcity. But here, it’s negligible—no meaningful impact. I recall burns spiking during high activity periods, but stagnation mirrors low network use.

[Place Image: Chart showing XRP burn rate stagnation from August last year to February 3, with daily burns highlighted.]

ETF demand echoes this slump. Funds lost $404k on Monday, following $92 million outflows last Thursday. Investors pull back when sentiment sours. These products track XRP, so waning interest hits price hard. In 2025, we saw similar ETF drains precede crashes. It’s a red flag.

Yet, not all doom. XRPL shines in stablecoins and RWAs. Stablecoin supply hit $417 million, driven by RLUSD—a top player. This provides stability for cross-border payments, Ripple’s core strength. RWAs tokenized real assets reach $1.47 billion in value, up 271% in 30 days. That’s explosive growth. Ctrl Alt tokenized $129 million in diamonds on Tuesday. Other entities like Vert Capital, Guggenheim, and JMWH contribute.

Ripple Labs scored a Luxembourg license this week, adding to UK approvals, a US banking charter, and an EU money license. These bolster credibility. In Web3, trust comes from regulatory nods—they open doors to institutions wary of wild-west vibes.

Expanding on DeFi struggles: XRPL’s protocol count at 21 limits options. Think about it—users want variety for hedging risks. One protocol fails, and the whole ecosystem wobbles. Ethereum’s diversity spreads risk. XRPL needs more builders. TVL drop of 20% in 30 days? That’s capital flight. Factors include market volatility, better yields elsewhere. Degens chase APY; if XRPL offers low returns, they migrate.

DEX volume at $145,820 is telling. High volume means robust trading, deep liquidity. Low volume invites manipulation, wider spreads. Traders hate slippage—it eats profits. Compare to Ethereum’s $3.1 million— that’s real depth. XRPL must attract more liquidity providers to compete.

Burn rate details: 335 tokens on February 3 is a drop from peaks. Burns happen per transaction to prevent spam. Stagnation since August suggests fewer transactions. No price boost because supply reduction is tiny against 100 billion max supply. Market cap at $97.22 billion, 24-hour volume $3.58 billion—burns barely dent that.

ETF outflows: $404k Monday, $92 million Thursday. This waned demand over weeks signals bearish sentiment. ETFs amplify retail access; when they bleed, price follows.

Positives in depth: Stablecoin supply $417 million. RLUSD leads, offering pegged value for transfers. In DeFi, stablecoins enable lending without volatility. XRPL’s edge here could spark revival if integrated better.

RWA value $1.47 billion, 271% growth. Tokenizing diamonds via Ctrl Alt—$129 million—shows real utility. Vert Capital, Guggenheim, JMWH add prestige. RWAs bridge tradfi and crypto, attracting big money.

Licenses: Luxembourg this week, prior UK, others. US banking charter, EU money license. These enable compliant operations, key post-2025 regulations.

To be honest, XRPL’s DeFi lag hurts XRP price. But RWAs and stablecoins offer hope. Traders watch for turnaround signals.

XRP Price Prediction Points to Bearish Drop Toward $1

Technical analysis on the weekly chart reveals a bearish XRP trend, with five straight weeks of declines hovering near November 2024 lows, risking a break below the Major S/R pivot in Murrey Math Lines and flipping the double-top neckline to resistance, targeting $1 then $0.7813.

XRP price crashed hard lately. Weekly chart shows five consecutive down weeks. Now at lows not seen since November 2024. I analyze these setups often—bear flags like this precede deeper slides.

Key risk: Dropping below Major S/R pivot in Murrey Math Lines. This tool plots support/resistance based on math. Breaking it opens floodgates. Coin already below all moving averages—50, 100, 200-week. That’s death cross territory.

Double-top pattern: Price hit highs twice, failed, now neckline acts as potential resistance. Flipping it confirms reversal. Psychological $1 level next. Breach that, and $0.7813 looms—the Strong Pivot Reverse in Murrey.

[Place Image: Screenshot of XRP weekly chart with Murrey Math Lines, double-top pattern, and moving averages marked.]

Forecast highly bearish. From $1.500 low this week, 57% off ATH. Trend continues amid weak metrics.

Elaborating on technicals: Murrey Math Lines divide ranges into eighths for pivots. Major S/R is critical—often where trends pivot. XRP teeters there.

Moving averages: Below all signals downtrend. Averages smooth price, act as dynamic support. Crashing through means sellers dominate.

Double-top: Classic chart pattern. Two peaks at similar highs, pullback forms neckline. Break below neckline targets drop equal to pattern height. Here, it risks flipping to resistance, pushing price lower.

Next levels: $1 psychological. Round numbers draw attention; breaks amplify moves. Then $0.7813, another Murrey pivot. Strong support historically, but in bear markets, it cracks.

Context from source: Price at $1.500 low, lowest since November 2024. Five down weeks build momentum. Overall slump ties to XRPL woes.

Broader prediction: If metrics don’t rebound, slide persists. But positives like RWAs could halt it. I eye volume—$3.58 billion 24-hour suggests interest, but direction matters.

In 2025 crises, similar patterns led to capitulation. Traders set stops below $1 to avoid bag-holding.

To reach depth: Explain Murrey Math. Developed by T.H. Murrey, based on Gann theory. Divides price into 8/8ths, with levels like 4/8 as major pivot. XRP risks sub-4/8, bearish.

Double-top mechanics: First top forms, retrace, second top fails lower volume—weakness. Neckline break with volume confirms.

Psychological levels: $1 acts as magnet. Traders pile in on breaks.

If drops to $0.7813, that’s pivot reverse—potential bounce or further pain.

Tie to metrics: Weak DeFi drags sentiment, fueling technical breakdown.

Positive Highlights in XRPL Amid Overall Slump

Despite DeFi struggles, XRPL excels in stablecoins with $417 million supply led by RLUSD and RWAs at $1.47 billion value up 271% in 30 days, boosted by Ctrl Alt’s $129 million diamond tokenization, plus Ripple’s new Luxembourg license alongside prior UK, US, and EU approvals.

Stablecoins provide a bright spot. Supply over $417 million, with RLUSD topping charts. This token maintains dollar peg, ideal for remittances—Ripple’s forte.

RWAs surge to $1.47 billion, 271% growth in 30 days. Ctrl Alt tokenized $129 million diamonds Tuesday. Entities like Vert Capital, Guggenheim, JMWH drive this.

Licenses strengthen: Luxembourg this week, building on UK, other countries, US banking charter, EU money license.

[Place Image: Chart of XRPL RWA value growth over 30 days, highlighting 271% increase.]

Elaborate: Stablecoins reduce volatility in ecosystems. RLUSD’s rise positions XRPL for payments, not just speculation. In DeFi, they enable collateralized loans without crypto swings.

RWAs tokenize physical assets on-chain. Diamonds via Ctrl Alt—$129 million—proves concept. Brings liquidity to illiquid markets. Vert Capital likely focuses finance; Guggenheim investments; JMWH possibly assets. This 271% jump signals adoption.

Licenses: Regulatory wins build trust. Luxembourg for Europe ops; UK for key market; US charter for banking; EU license for transfers. Post-2025, these are gold.

Contrast to negatives: While DeFi TVL drops 20%, RWAs boom. Could offset if integrated.

Twitter buzz: Topics like “XRP RWA growth” trend, users discuss tokenization potential amid price dips.

Google searches: “What is RLUSD?” spikes, seekers want stablecoin details.

This balance shows XRPL’s dual nature—weak in pure DeFi, strong in real-world ties.

Impact of Waning XRP ETF Demand and Burn Rate

XRP ETFs experienced outflows of $404k on Monday and $92 million last Thursday, reflecting waning demand over weeks, while burn rate stagnated with only 335 tokens burned on February 3, unchanged since August last year and offering no price support.

ETFs shed value fast. $404k out Monday, after $92 million Thursday. This over past weeks indicates fading interest.

Burn rate: 335 XRP on February 3, flat since August. No meaningful price effect.

[Place Image: Chart of XRP ETF flows showing recent outflows.]

Detail: ETFs allow indirect exposure. Outflows mean redemptions, increasing selling pressure. $92 million is huge—signals institutional retreat.

Burns: Mechanism destroys fees, reducing supply. Low burns mean low activity. Against 100B max supply, 335 is insignificant.

Implications: Combined, they reinforce bearish price. No scarcity from burns, less capital from ETFs.

Twitter: “XRP ETF outflows” discussions blame market sentiment.

Google: “Why XRP burn rate low?” queries seek explanations.

Broader Market Context for XRP Price Risks

XRP’s market cap stands at $97.22 billion with $3.58 billion in 24-hour volume and a max supply of 100 billion, as price risks further slides amid comparisons to stronger networks like Solana, Ethereum, and BNB Chain in DeFi metrics.

Market stats: Cap $97.22B, volume $3.58B, max supply 100B.

Comparisons: XRPL’s tiny metrics vs. Ethereum’s $60B TVL.

Elaborate: Market cap reflects value; high but down 57% from ATH. Volume shows liquidity, but direction bearish.

Max supply caps inflation. Burns chip away, but slowly.

Vs. others: Solana’s speed, Ethereum’s ecosystem dwarf XRPL.

This context heightens slide risks to $1.

To expand: In 2026, trust metrics like these matter. XRPL needs to catch up.

Related articles hint broader predictions, like post-government shutdown outlooks.

Twitter: “XRP vs Ethereum TVL” debates.

Google: “XRP max supply impact?”

Frequently Asked Questions (FAQs)

What is the most likely XRP price prediction?

The most likely forecast is highly bearish, with XRP risking a drop to the $1 psychological level, followed by potential further downside to $0.7813 based on Murrey Math Lines, amid ongoing five