The XRP community remains split over what continues to suppress the price of the digital asset, even after last year’s pivotal court ruling. While many have pointed fingers at the Ripple vs. SEC lawsuit, a new analysis suggests the real reason for XRP’s sluggish performance lies elsewhere.
Legal Clarity Already Achieved in 2023
Vincent Van Code, a prominent market analyst, argues that regulatory uncertainty is no longer the central hurdle for XRP. He points out that Judge Analisa Torres’ July 2023 ruling, which determined XRP is not a security in secondary markets, effectively settled the legal debate that had clouded XRP’s future.
“This decision gave Ripple and its partners the green light,” Van Code explained, emphasizing that any lingering legal concerns are now secondary.
Indeed, following that decision, Ripple expanded partnerships globally, including high-profile collaborations in Latin America and Asia. However, XRP’s price has barely moved despite these advances.
Markets Priced in the Legal Outcome Early
Van Code notes that institutional investors had largely positioned themselves for a favorable ruling before the decision was issued. “Smart money anticipated the outcome,” he said, adding that the market had effectively priced in the expected legal resolution well before the official judgment.
This dynamic, he argues, explains why XRP saw only modest price movements after the court victory. Investors betting on a sudden surge post-ruling were left disappointed, as the legal clarity narrative had already been absorbed by the market.
Demand Infrastructure Emerges as the True Bottleneck
The more pressing problem, Van Code asserts, is the incomplete state of demand infrastructure among Ripple’s institutional partners.
He highlighted that while many banks and financial institutions signed on to RippleNet, their systems require lengthy periods of compliance reviews, internal approvals, and integration testing before going live. These processes often take 12 to 24 months.
According to Van Code, “The biggest bottleneck right now isn’t law, it’s the demand infrastructure. The rails for large-scale payments are not yet fully operational, and that is delaying real adoption.”
His view aligns with recent data from Ripple’s own reports, which show a sharp uptick in On-Demand Liquidity (ODL) corridors going live in emerging markets, but slower-than-expected progress in developed markets due to stringent compliance requirements.
A Ticking Clock for Institutional Adoption
With the legal uncertainties mostly resolved, many banks likely began ramping up the integration of Ripple technology in late 2023, following the court decision.
As these rollouts progress, Van Code predicts the final phase of onboarding will reach completion in the next few months, setting the stage for genuine utility-driven demand for XRP.
He also noted that while some banks have gone live with Ripple solutions, many large institutions are still finalizing technical and regulatory preparations. As corridors for ODL transactions become fully active, he expects XRP to break out of its stagnant price range.
Outlook for XRP in the Coming Months
Van Code concluded that the key to XRP’s price movement lies in the deployment of Ripple’s payment infrastructure, not courtroom drama. He projects that the next two to three months could prove pivotal, as the final wave of integrations unlocks new sources of on-chain demand.
As institutional usage of Ripple’s technology ramps up, the resulting increase in transaction volumes could finally provide the long-awaited boost to XRP’s price, shifting the conversation from legal battles to real-world utility.
