Decline in XRP Value by 70% Suggests Lack of Demand in Payment Usage: Is It Simply Unwanted?

In the world of cryptocurrency, XRP is currently at a critical juncture. The digital asset, known for its fast and inexpensive account-to-account transactions, has been experiencing a significant decline in its payments activity.

Over the past month, XRP's payments activity has dropped by more than 70%, with daily transactions between XRP accounts dropping from over 750,000 in early August to just 221,000 on Sept. 8, 2025. This decline seriously calls into question the fundamental usefulness of the token.

The decline in payments activity could potentially compromise XRP's bullish momentum. The 70% decline in XRP's payments activity is primarily due to reduced adoption by financial institutions and regulatory uncertainties surrounding Ripple Labs, the company behind XRP.

However, the short-term setup for XRP appears favourable to traders. Technical indicators suggest a potential breakout above $3 for XRP, with the support at $2.77 remaining strong. The 50-day moving average stands as resistance for XRP, but bulls are regaining ground from a technical perspective.

Despite these technical signs, the sustainability of XRP's bullish momentum is questionable given the current state of the network. The lack of steady on-chain utility could lead to XRP's price increases being short-lived. XRP runs the risk of becoming a purely speculative asset without improvements in utility metrics.

On a positive note, market sentiment is beginning to change in a more positive direction for XRP. If buying volume continues, the price of XRP may move closer to the $3.00-$3.08 range.

In conclusion, XRP is at a turning point in its history. The decline in payments activity is a significant concern, but the short-term technical outlook remains favourable. The long-term success of XRP will depend on its ability to regain its utility and address the regulatory uncertainties surrounding Ripple Labs.