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![](https://gimg2.gateimg.com/image/article/1741170666ripple.png)
##TL;DR
In the past two days, <a href="/price/xrp-xrp" target="_blank" class="blog_inner_link">XRP</a> briefly surpassed ETH to become the second in FDV rankings.  
Although XRP has long been renowned, few people truly understand the company behind it—Ripple.  
Ripple is showcasing the potential of blockchain technology through its cross-border payment solutions. However, it still faces challenges such as insufficient market penetration, regulatory pressures, and an overreliance on XRP sales for revenue. Ripple's future success will depend on its ability to balance business innovation and capital operations, becoming a true financial disruptor rather than merely a product of market faith.

##Ripple’s Core Business Logic: Reinventing the Forex Market with XRP

Ripple’s core business is providing efficient cross-border payment solutions. Its technological foundation is On-Demand Liquidity (ODL), which uses XRP as a bridge currency to simplify cross-border transaction processes. Traditional cross-border payment systems rely on the SWIFT network and pre-funded accounts, which are time-consuming and involve significant intermediary costs. Ripple offers a faster and cheaper alternative, particularly suited for enterprises and financial institutions requiring real-time settlements.  

Ripple’s model leverages the liquidity mechanism of cryptocurrency exchanges, bypassing the multi-layered clearing processes typical of traditional banks. This technological edge gives Ripple a competitive advantage in emerging markets and high-frequency cross-border payment scenarios.  

![](https://gimg2.gateimg.com/image/article/1741170683screenshot-20250305-153838.png)

However, Ripple’s business expansion is not without challenges. For instance, the global rollout of its network requires extensive cooperation with banks, and regulatory policies in certain regions remain unclear. Ripple's market share within the global cross-border payment sector is also relatively small. In 2023, its total transaction volume was approximately $70 billion, a negligible figure compared to the $190 trillion global cross-border payment market.  

Nevertheless, Ripple has become a significant pioneer in applying blockchain technology to cross-border payments. Its continuous technological optimization and market expansion highlight the potential of blockchain in traditional financial sectors.  

##Market Performance and Capital Logic: The Story Behind Price Volatility

XRP’s price volatility has consistently been a focal point of market attention.  

In early 2025, XRP’s price dropped sharply from a high of $3.40 to below $2.67, demonstrating that its price movements are more influenced by market sentiment and capital logic than by the performance of its underlying business. This has made Ripple <a href="/price-prediction/xrp-xrp" target="_blank" class="blog_inner_link">XRP price prediction</a> a hot topic among investors and analysts.  

From a technical analysis perspective, XRP’s current price trajectory exhibits a classic descending wedge pattern with a critical support level at $2.50. A breach of this level could trigger further downside pressure, with target prices potentially falling to $2.30 or even $1.95. However, if the support holds, XRP could rebound to $2.75, $2.90, or even $3.05.  

![](https://gimg2.gateimg.com/image/article/1741170702screenshot-20250305-153438.png)

Regarding technical indicators, XRP’s RSI shows it is approaching overbought territory, signaling upward momentum may weaken. Additionally, Bollinger Bands and MACD indicators suggest that XRP might face short-term correction pressures. However, XRP’s price volatility is not solely a reflection of technical factors; it is also deeply rooted in Ripple’s capital logic.  

Ripple’s revenue model heavily depends on the sale of XRP rather than income generated from its core cross-border payment business. According to allegations by the SEC, Ripple raised over $1.3 billion through XRP sales to fund its business expansion and market promotions. This reliance on XRP sales has drawn criticism and led to years of legal battles. Although Ripple eventually settled with the SEC, agreeing to pay a $125 million fine, the incident highlighted the risks inherent in Ripple’s business model: an overreliance on XRP’s market performance rather than the actual growth of its core business.  

Despite this, XRP’s price volatility also presents opportunities for short-term traders. By closely monitoring key support and resistance levels, changes in trading volume, and technical indicators, investors can better navigate XRP’s short-term trends. For those interested in Ripple <a href="/price-prediction/xrp-xrp" target="_blank" class="blog_inner_link">XRP price prediction</a>, understanding these technical patterns and market dynamics is essential for making informed decisions.  

##Expanding Business Lines and Future Challenges: Can Innovation Surpass Faith?

To overcome the limitations of its cross-border payment business, Ripple is actively expanding its ecosystem, aiming to establish a presence in broader blockchain-based financial services. Stablecoins and custody services are among its primary areas of focus.  

For example, in 2024, Ripple launched the RLUSD stablecoin, which received approval from the New York Department of Financial Services (NYDFS). This move marked Ripple’s transition from a single cross-border payment business to a broader financial services platform. Ripple also expanded its presence in the asset custody sector by acquiring Swiss custody provider Metaco and U.S.-based Standard Custody.  

These new business lines provide Ripple with additional revenue streams and strengthen its competitiveness within the blockchain financial services ecosystem. For instance, through its custody services, Ripple can offer institutional investors more secure digital asset management solutions, potentially attracting more traditional financial institutions into its ecosystem.  

However, these expanded business lines also bring new challenges. First, Ripple’s revenue model relies heavily on XRP sales, gradually shifting its business logic from product-driven to market-faith-driven. If XRP’s price continues to fluctuate or market demand declines, Ripple’s revenue could be severely impacted. Second, the stablecoin and custody service sectors are becoming increasingly competitive, with Ripple facing challenges from other blockchain projects like <a href="/price/ethereum-eth" target="_blank" class="blog_inner_link">Ethereum</a> and USDC. Furthermore, the regulatory landscape for stablecoins and digital asset custody varies significantly across countries, potentially constraining Ripple’s business growth.  

Ripple’s future success will hinge on its ability to balance technological innovation and capital operations. On one hand, it must enhance its core business competitiveness through innovation in technology and services. On the other hand, it must reduce its reliance on XRP sales to ensure the sustainability of its business model.  

Ripple’s story is, in essence, an experiment in balancing technological innovation with capital operations. It addresses payment inefficiencies through technology, showcasing the potential of blockchain in traditional financial sectors. Simultaneously, it amplifies its value through market narratives and capital maneuvers. The line between Ripple’s value creation and market faith remains blurred in a highly speculative market.  

Whether Ripple can become a genuine financial disruptor depends on its ability to balance business innovation and capital logic. If successful, it could provide valuable insights for the entire crypto industry. If it fails, it may become yet another casualty of market faith.  

For investors, however, it is crucial to carefully consider Ripple’s growth logic before making any decisions. Additionally, for those exploring Ripple XRP <a href="/price-prediction" target="_blank" class="blog_inner_link">price prediction</a>, understanding the interplay between its business fundamentals and market sentiment will be key to evaluating its long-term potential.

<div class="blog-details-info">
<div>Author:** Orisi.T**, Gate.io Researcher
<div>Translator: Orisi.T
<div class="info-tips">\*This article represents only the views of the researcher and does not constitute any investment suggestions. All investments carry inherent risks; prudent decision-making is essential.
<div>\*Gate.io reserves all rights to this article. Reposting of the article will be permitted provided Gate.io is referenced. In all cases, legal action will be taken due to copyright infringement.
</div>

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Ripples success depends on its ability to balance technological innovation and capital operations while reducing reliance on XRP sales.

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Ripple XRP Price Prediction 2025: The Interaction Between Technological Innovation and the Capital Game