300 Banks Use RippleNet, But XRP Transaction Volume Is Falling: What Gives?

• XRP’s transaction volume continues declining even as RippleNet expands to over 300 banking partners.

• Banks use RippleNet’s infrastructure without requiring XRP because the token remains optional for settlement.

• Three XRP ETFs launched in November with strong inflows but created no on-chain activity increase.

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XRP’s (CRYPTO: XRP) adoption story looks strong on paper. Ripple works with more than 300 banks, its payment network keeps expanding, and regulatory conditions are clearer than they’ve been in years.

XRP ETFs from Canary Capital, Franklin Templeton, and Grayscale launched in November, giving institutions regulated access that didn’t exist before. Yet XRP’s transaction volume keeps slipping, even as RippleNet grows. The network’s getting bigger, but activity on the ledger isn’t matching the headlines.

That gap raises a serious question for traders and institutions: Why is XRP usage falling while RippleNet keeps expanding?

XRP’s last six months show sharp optimism followed by steady cooling. July opened with a strong push toward $3.57 as traders positioned ahead of expected ETF launches. Volume jumped, positioning turned bullish, and XRP held near $3 through late August.

Through September and October, whale selling pushed XRP down to the mid-$2 range. Attempts to reclaim strength faded as liquidity thinned.

November brought three major XRP ETF launches. Canary Capital debuted November 13 with record $59 million first-day volume and $245 million in assets. Franklin Templeton and Grayscale followed November 24, adding credibility but not immediate demand. Inflows moved quietly through adviser channels, and XRP stayed between $2.00 and $2.40. Strong headlines continue appearing, but on-chain activity hasn’t followed.

RippleNet keeps expanding, but that growth hasn’t lifted XRP’s activity. The reason’s simple: banks can use RippleNet’s messaging and settlement tools without touching the token.

Many of the 300 institutions rely solely on the network’s infrastructure layer, treating Ripple like a traditional payments provider instead of using XRP as liquidity. Even in corridors where On-Demand Liquidity runs, XRP moves through the system for only a few seconds before converting to the destination currency. That creates efficiency but not sustained on-chain volume.

Institutional adoption also moves slowly. Banks test small corridors, clear compliance steps, and scale only after months of review. So even with Ripple reporting trillions in ODL throughput, actual XRP usage stays modest.

This is the core disconnect: RippleNet can grow as a network while XRP transaction counts fall, because the token remains optional rather than required.

Ripple built an impressive global network, but rapid infrastructure expansion hasn’t turned into real transaction growth. More than 300 banks sit on RippleNet. ODL corridors span major trade routes. Yet on-chain activity keeps shrinking because the pipes are growing faster than the traffic moving through them.

Banks are testing systems, running pilots, and signing agreements, but production-level settlement remains limited. The biggest barrier remains XRP’s price volatility. Without a stable, regulated asset to settle USD flows, many banks avoided using XRP beyond controlled environments. Price volatility created accounting issues, and corridors couldn’t scale without a reliable dollar-backed option.

RLUSD fixes that problem. It gives banks a regulated, fully backed digital dollar. RLUSD lets institutions test corridors, move real value, and measure savings without riding XRP’s price swings. That builds trust before larger flows arrive.

Japan and Southeast Asia highlight this shift. These regions deal with expensive, slow remittance routes, and RLUSD offers faster settlement and lower costs without currency risk. Once RLUSD proves reliable in these corridors, XRP can step in as the bridge asset for multi-currency transfers. This staged approach slows XRP demand now but creates a stronger foundation.

Three major XRP ETFs launched in November, marking a turning point for institutional access. Canary Capital went first on November 13, posting record-breaking numbers: $59 million in first-day trading volume and $245 million in assets under management. That set the stage for Franklin Templeton and Grayscale, which both launched November 24 on NYSE Arca.

The wave of ETF approvals signals institutional confidence. A $1.5 trillion asset manager like Franklin Templeton backing XRP tells traditional finance the token’s stable enough for mainstream allocation. Canary’s record debut showed real demand—investors poured money in fast, seeking regulated exposure through familiar brokerage accounts.

But here’s the catch: ETF launches don’t create on-chain activity. ETF buyers move through custodians and OTC desks, not public exchanges. XRP allocated for ETFs goes straight into cold storage, where it sits quietly without generating transactions. This stabilizes supply and adds credibility, but it doesn’t lift network usage.

XRP enters 2026 with solid infrastructure. But the question remains: will this translate to actual usage, or will the disconnect persist?

If RLUSD gains traction quickly in Japan and Southeast Asian corridors, banks could move to production-level settlement by Q2 2026. That would finally create sustained XRP demand as institutions use it for multi-currency bridging.

Combined with steady ETF inflows improving market depth, XRP could climb to $3.50–$4.50 as utility catches up to infrastructure. This scenario requires RLUSD proving reliable fast and multiple corridors activating simultaneously—possible but not guaranteed.

A realistic scenario sees measured RLUSD adoption over six to nine months. Japan and a few Southeast Asian corridors move into production, but wider rollout takes longer than optimists expect.

XRP sees modest on-chain improvement tied to ODL growth, though sentiment stays cautious. ETFs add slow inflows without dramatically shifting supply-demand dynamics. Under these conditions, XRP trades between $2.30 and $3.30 for most of 2026, climbing only when broader crypto markets support rotation into utility-focused assets.

The risk case matters too. If RLUSD faces regulatory delays or technical hiccups slowing bank adoption, production volume stays limited. RippleNet continues growing on paper while real settlement remains confined to pilots.

ETF inflows weaken as advisers prioritize Bitcoin and Layer-1 narratives with clearer traction. Liquidity thins, whale selling returns, and XRP drifts toward $1.80–$2.10 as markets wait for proof that enterprise usage is actually happening.

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