XRP Has Fallen 54% in Six Months: Is It Now a Bargain Buy?

After being one of the hottest cryptocurrencies throughout much of 2025, XRP (XRP +1.36%) has experienced a sharp correction. As of March 10, it has dropped 54% over the past six months, with every recent price uptick followed quickly by a sell-off.

While such drawdowns can sometimes present buying opportunities, they can also be risky. Let’s examine whether XRP is a good buy at its current price.

Market-wide volatility affects XRP

Both cryptocurrency and stock markets have been volatile recently. Most major cryptocurrencies have also declined over the last six months, with Bitcoin down 39%, Ethereum down 54%, and Dogecoin falling 63%. Meanwhile, stock investors have rotated out of tech stocks into value stocks.

XRP’s decline is not due to any major failures specific to it but reflects the broader downturn in the crypto market. However, while many cryptocurrencies suffer during market downturns, not all recover when conditions improve, so XRP’s future success is not guaranteed.

Challenges facing XRP

XRP’s real-world utility lies in its use within Ripple Payments, a blockchain-based payment network for financial institutions. Ripple Payments enables fast, low-cost cross-border transactions. Banks partnering with Ripple can use XRP as a bridge currency, converting payments from the sender’s currency to XRP, then to the recipient’s currency.

Despite this concept, several issues have emerged since XRP’s launch in 2012. Many financial institutions use Ripple Payments without utilizing XRP. Of the 300+ institutions using Ripple Payments, only a few also use XRP. Even when XRP is involved, it serves only briefly, as tokens are converted to the destination currency within seconds.

Additionally, Ripple launched its own stablecoin, Ripple USD, last year, which now has a market cap of $1.6 billion. Ripple USD could theoretically serve as a better bridge currency than XRP because it lacks XRP’s price volatility, although both could coexist.

The Clarity Act could boost XRP

There is some positive news for XRP. The U.S. Senate Banking Committee is considering the Clarity Act, which would establish a regulatory framework for digital assets. Importantly, it would classify XRP as a digital commodity rather than a security. This classification would allow U.S. banks and asset managers to fully integrate XRP into their operations, including using it as a bridge currency for international payments.

However, even if the Clarity Act passes, there is no guarantee XRP’s price will rise. For example, when Ripple settled its lawsuit with the SEC last August, XRP’s price did not gain significant momentum.

If you are optimistic about XRP, now might be a good time to increase your position. Still, due to the risks involved, it is wise not to make XRP a large part of your portfolio. Consider diversifying by investing in other cryptocurrencies like Bitcoin and Ethereum, as well as cryptocurrency stocks. This approach allows you to benefit from a potential market recovery even if XRP underperforms.