XRP has been on a downward trajectory lately, mirroring the broader crypto market, which has lost over $1.3 trillion since October. Despite the token’s purpose extending beyond short-term price fluctuations, sentiment remains strained due to a 30% drop in the last three months.

Dr. Camila Stevenson, a health and finance commentator, asserts that discussions around XRP often overlook how major financial institutions assess settlement tools. While everyday traders tend to concentrate on charts and quick exits, banks have a different focus. They prioritize whether a system can handle stress, facilitate large transactions, and maintain functionality under adverse conditions. This perspective is akin to infrastructure testing, where durability and capacity are more important than initial costs.

XRP was designed to function as a bridge for transferring value, rather than just a speculative asset. With a fixed supply, the token cannot increase in quantity to meet rising transaction demands. Thus, price elevation becomes the only mechanism to accommodate larger volumes. Analyst XFinanceBull supports this view, urging market observers to focus on flows instead of daily price changes.

However, market dynamics still play a significant role. XRP trades in open markets, where speculation heavily influences price trends. Although a higher price may enhance efficiency, it doesn’t assure widespread adoption. Stevenson notes that many institutions engage through custodians, OTC desks, and private agreements, often executing transactions quietly. Consequently, these moves may not register as dramatic fluctuations on public charts. She warns that sudden spikes during positioning could indicate instability rather than robust usage.

Stevenson argues that banks dealing with billions would prefer fewer tokens that each hold greater value. This approach simplifies settlement and reduces the risk of slippage during peak times. Large financial systems typically face more significant risks when money movement is hampered or when settlements are delayed, rather than during price declines. In this light, a higher XRP price could facilitate smoother transfers if transaction volumes increase sufficiently to test the system's limits.

Despite these theoretical benefits, tangible evidence of substantial institutional demand remains scarce. Factors such as regulation, liquidity depth, and reliable access continue to influence whether banks will engage in meaningful volume. The recent 33% drop in XRP's price illustrates how rapidly sentiment can change, even as long-term use cases are debated. The notion that banks would prefer a higher XRP price is grounded in future scalability rather than current trading behaviors.