Ripple has reportedly reached a $40 billion valuation after a new round of funding, underscoring headlines that XRP is “underrated.” XRP traded near $2.06 on Jan. 12 as the news spread, it held its range rather than increasing dramatically. That gap highlights a big theme in crypto right now: strong companies don’t always raise the tokens they’re linked to.
This is important because many retail investors treat Ripple as a public company and XRP as its own stock. Crypto doesn’t work that way. Understanding the difference can save you from buying hype instead of the basics.
We’ve seen this story before across altcoins as infrastructure firms grow faster than the tokens that share their name.
FIND: Top Ethereum Meme coins to buy in 2026
Why Ripple’s Success Doesn’t Automatically Raise XRP
Ripple is a private company that develops payment and settlement software for banks and institutions. XRP is a public crypto token that is freely traded on an exchange. They connect with XRP Ledger, but they are not the same asset.
Think of Ripple as a payments company and XRP as a fuel token that may or may not need to run an engine. Ripple can raise funds, sign banks, and raise money without forcing customers to hold XRP. That separation explains why the price of XRP can freeze even when Ripple seems strong.
This difference is already appearing in the market. XRP is still struggling to push past resistance levels, as seen in recent XRP price struggles, despite positive corporate headlines.
What Really Drives XRP Value Over Time
XRP does not generate cash flow like a stock. Its value depends on the usage. Specifically, even if people have to hold XRP in order to move value to the XRP Ledger.
Another way to think about this is speed versus demand. XRP can move money quickly, but if it stays in wallets for seconds, price pressure remains limited. For XRP to rise in a sustainable way, it must be a necessary bridge currency, not an optional shortcut.
🚨 BOOOOOOOOOOOOOOOM 🚨
BlackRock now uses Ripple’s $RLUSD as collateral.
Bullish for $XRP. Who is right? 👀 pic.twitter.com/2gdb5j5taT
– Amonyx (@ammonyx) January 12, 2026
Ripple’s expansion into stablecoins like RLUSD complicates this picture. Stablecoins improve functionality on the XRP Ledger, but can also replace XRP if institutions prefer price stability. Ripple’s stablecoin push is a key part of its growth strategy.
FIND: Top Ethereum Meme coins to buy in 2026
Where the Bull and Bear Case Diverges
(Source: XRPUSD / TradingView)
The bullish view is that Ripple’s acquisition and institutional route will force XRP into the center of global payments. If banks have to hold XRP to stabilize the scale, demand increases, and the price follows.
The opposing view is simple. Institutions can use the XRP Ledger without touching XRP at all. They can settle for stablecoins or dollar tokens instead. In that case, the network grows while the token remains speculative.
This tension is already reflected in price action. XRP jumps above $3 after 2025 regulatory clearance, but momentum fades as euphoria cools
Practical Checklist for XRP Managers
If you own XRP, track behavior, not headlines. See if the exchange rates really need XRP, not just XRPL. Monitor how much liquidity flows through XRP pairs versus stablecoins.
Also, separate Ripple news from XRP trades. Ripple’s funding round helps the company, not automatically your wallet. That difference explains why even good news like winning Ripple’s UK license didn’t cause an explosion.
XRP remains a bet on creation, not branding. If Ripple proves that XRP cannot be avoided in buying currency, the price pressure will increase. Otherwise, patience is more important than hype.
FIND: Top Solana Meme coins to buy in 2026
Follow 99Bitcoins on X for Latest Market Updates and Subscribe to YouTube for Daily Expert Market Analysis
Why you can trust 99Bitcoins
Founded in 2013, 99Bitcoin team members have been crypto experts since the early days of Bitcoin.
90+ hours
Weekly survey
100k+
Monthly students
50+
Professional contributors
2000+
Crypto projects reviewed
Follow 99Bitcoins in your Google news feed
Get the latest updates, trends, and information delivered right to your fingertips. Register now!
Register now 
