XRP slipped below $1.30 on Tuesday, extending a sharp pullback as Dubai-based investor Royal Kane argued that the token’s roughly $81.68 billion market cap leaves too little room for meaningful upside.
- Price: XRP fell 7.3% and dropped below $1.30
- Valuation: Royal Kane says the market cap is already too large
- Macro pressure: higher rates and sticky inflation are still squeezing risk assets
- Policy drag: the Senate stalled the CLARITY Act, leaving U.S. crypto rules murky
The criticism lands because it hits the awkward truth about large-cap crypto. Size helps until it starts acting like a lid. XRP is still one of the most recognizable assets in the market, but at this scale, nobody should expect easy 10x fantasy fuel. The price takes a lot more capital and a lot more conviction to move.
Royal Kane, described as a Dubai-based crypto investor, was blunt about it.
“I would never invest in Ripple at this stage because its market cap is already too large, ”
He also said investors should “find a coin with a compelling narrative for the coming years.” In crypto, a narrative is the story that pulls in attention and capital. Sometimes that story is real adoption. Sometimes it is just coordinated hype wearing a fake mustache.
XRP’s weakness is not just one investor’s opinion. The token fell 7.3% on Tuesday, slid below $1.30, and is now about 23% below its recent high near $1.68. Since the start of 2026, it has dropped 29.18%. For a large-cap token that has spent years trying to prove it belongs in serious portfolios, that chart is not exactly flattering.
Macro conditions are doing part of the damage. The Federal Reserve raised its benchmark rate by 25 basis points on Sep. 16, lifting the target range to 3.75% to 4%. That was the first U.S. rate increase since 2023. According to the source, 12 of 18 officials expected additional increases during the year.
Inflation is still sticky enough to keep markets uneasy. Annual inflation reached 3.4% in August, while consumer prices rose 0.4% from the previous month. Energy costs climbed 2.1%, gasoline prices increased 3.9%, and core consumer prices rose 0.3% on the month. After that inflation report, prediction-market traders raised the probability of another quarter-point rate increase to 81%.
That matters for crypto because tighter money usually means less appetite for speculation. When borrowing costs rise and liquidity tightens, investors tend to get choosier. Assets that run on momentum and future optimism feel that squeeze first.
Then there is the regulatory mess, which keeps handing out pain to everyone involved. On Sep. 15, the U.S. Senate rejected cloture on the Digital Asset Market CLARITY Act by a vote of 49 in favor and 50 against. Cloture is the procedural vote needed to end debate and move a bill forward. Without 60 votes, the measure could not proceed to formal debate.
The bill was designed to split oversight between the Securities and Exchange Commission and the Commodity Futures Trading Commission, giving the industry a clearer framework for how digital assets are classified. Senate Republicans had circulated a revised 635-page draft before the vote. That draft added language around “ancillary assets, ” described as network tokens whose value depends on the managerial or entrepreneurial work of an originator or related party.
Seven Senate Democrats have since reopened talks and said the rejected cloture motion was “not the end” of the legislative effort. That may be true, but it is still not law, and markets have to price the current reality rather than the promise of a future compromise.
For XRP holders, the policy picture matters because the token has long been caught in the gap between regulatory categories. Ripple is the company. XRP is the native asset of the XRP Ledger. They are linked, but they are not the same thing, and that distinction sits at the center of nearly every XRP debate.
Ripple’s business has also broadened beyond the token itself. The company now mentions Ripple Payments, RLUSD, Ripple Prime, and custody and treasury services. Ripple Prime was formed after the company acquired Hidden Road. That expansion matters because it shows Ripple is building a real business, but it does not automatically mean XRP holders capture all of that value. Some of it may support the token indirectly. Some of it may simply enrich the company behind it. Crypto loves to blur that line until someone asks for receipts.
Still, the bearish case is not the whole picture.
XRP gained 28.5% in August, and U.S. spot XRP exchange-traded funds attracted $153.55 million during the month. According to the source, $150.28 million of that came in during the final two weeks. That is a meaningful signal that some investors still want exposure, even if the recent price action says sentiment has cooled.
Network activity also picked up, though the details matter. XRP Ledger payment volume rose 521% in one week, but the source says that increase was driven by larger transfers rather than a jump in transaction count. That is worth separating clearly: more value moving across the network is not the same thing as more everyday usage. Whale movement is not the same as grassroots adoption.
On the legal front, XRP still has one important anchor. In 2023, U.S. District Judge Analisa Torres found that Ripple’s programmatic XRP sales on public exchanges did not constitute securities transactions, while direct institutional sales did violate securities law. That split ruling is why XRP can still be argued both ways. It reduced one major legal threat, but it did not wipe out all regulatory risk.
So where does that leave XRP right now?
It has a recognizable brand, an established network, a partial legal win, fresh business expansion at Ripple, and evidence that some investors still want exposure. It also has a large market cap, a weak recent chart, macro pressure from higher rates, and unresolved U.S. policy risk. The bull case is still alive, but it is no longer something you can sell on pure vibes.
Kane’s point lands because it reflects a basic market truth: big assets can rise, but they usually do not sprint. At an $81.68 billion market cap, XRP needs real adoption, clearer rules, and sustained demand to keep moving higher. That is a harder lift than hoping for a miracle candle.
For a deeper take on the policy angle, see why XRP price hinges on Clarity Act 2026 and how the token could either unlock billions or stay stuck in limbo. And if the bear case keeps tightening its grip, the downside scenario from XRP price crash looming at $1.13 is the kind of ugly chart nobody wants to marry.
Key questions
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Why did XRP fall below $1.30?
XRP dropped 7.3% on Tuesday as broader risk appetite weakened and investors weighed higher U.S. rates, sticky inflation, and the Senate’s failure to advance the CLARITY Act. -
Does XRP’s market cap limit upside?
Not mathematically, but a large market cap does make huge percentage gains harder because far more capital is needed to move the price. That is Kane’s core argument. -
Is Ripple the same thing as XRP?
No. Ripple is the company; XRP is the native asset of the XRP Ledger. They are connected, but one does not automatically equal the other. -
What happened to the CLARITY Act?
The Senate rejected cloture 49-50, which blocked formal debate because 60 votes were needed to move the bill forward. -
What did Judge Analisa Torres rule in 2023?
She ruled that Ripple’s programmatic XRP sales on public exchanges were not securities transactions, but direct institutional sales violated securities law. -
Are there still signs of demand for XRP?
Yes. XRP gained 28.5% in August, spot XRP ETFs drew $153.55 million, and XRP Ledger payment volume jumped 521% in one week. But that volume spike came from larger transfers, not more transactions. -
Does Ripple’s business growth automatically help XRP?
Not automatically. Ripple’s expansion into payments, RLUSD, custody, treasury services, and Ripple Prime strengthens the company, but the benefits for XRP holders are indirect unless that activity creates sustained token demand.
XRP still matters. The harder question is whether its current size, legal baggage, and macro backdrop leave enough room for the upside traders keep fantasizing about. Right now, the answer looks less like a moonshot and more like a grind.
