Ripple has reportedly been valued at $40 billion after a new round of funding, sparking headlines that XRP is “undervalued.” On January 12, as the news broke, XRP was trading close to $2.06, remaining within its range rather than breaking higher. The gap highlights a larger theme in the cryptocurrency space right now: powerful companies don’t always boost the tokens they’re associated with.
This is important because many retail investors view Ripple as a public company and XRP as its stock. This is not the case with cryptocurrencies. Knowing the difference can keep you from buying into hype instead of fundamentals.
We’ve seen this story before with altcoins, as infrastructure companies grew faster than their namesake coins.
Discover: The Best Ethereum Meme Coins to Buy in 2026
Ripple is a privately held company that builds payments and settlement software for banks and institutions. XRP is a public cryptocurrency that can be freely traded on exchanges. They are connected through the XRP ledger, but they are not the same asset.
Think of Ripple as a payments company and XRP as a fuel token that may or may not be needed to run the engine. Ripple can increase revenue, sign up banks and raise funds without forcing customers to hold XRP. This separation explains why XRP price remains stagnant even when Ripple looks strong.
This difference is already evident in the market. Despite positive corporate headlines, XRP has struggled to break through resistance levels, as shown by the recent struggles of XRP price.
XRP does not generate cash flow like stocks. Its value depends on usage. Specifically, whether one must hold XRP in order to transfer value on the XRP ledger.
One way to think about this is speed versus necessity. XRP can move funds quickly, but if it only stays in a wallet for a few seconds, price pressure is still limited. For XRP to continue rising, it must become a necessary liquidity bridge, not an optional shortcut.
Ripple’s expansion into stablecoins such as RLUSD complicates the situation. Stablecoins facilitate activity on the XRP ledger, but they can also replace XRP if institutions prefer price stability. Ripple’s stablecoin push is a core part of its growth strategy.
Discover: The Best Ethereum Meme Coins to Buy in 2026
(Source: XRPUSD/TradingView)
The bullish view is that Ripple’s acquisition and institutional regulation will force XRP to become the center of global payments. If banks have to hold XRP for large-scale settlements, demand will rise and so will the price.
The objection is simpler. Institutions can use the XRP ledger without touching XRP. They can be settled in stablecoins or tokenized USD. In this case, the network grows while the token remains speculative.
