Ripple’s XRP Falling Short in DeFi and Retail—What’s the Issue?

• Ripple has bet big on institutions, while others have chased retail investors.
• The XRP Ledger has struggled to compete in the DeFi and meme coin spaces.
• Ripple has doubled down on academic research.

Ripple is making headlines, but not just for its tech. Recently, Ripple CTO David Schwartz made waves with a tweet applauding Elon Musk’s Starlink for improving global internet access. The gesture was more than a nod; it highlighted Ripple’s broader strategy in a turbulent crypto landscape.

Ripple’s game plan is bold: while many blockchain projects scramble for retail adoption, Ripple is laser-focused on institutional giants and government contracts. Business expert Jake Claver puts it bluntly: Ripple isn’t chasing retail investors with XRP. Instead, it’s targeting high-stakes financial transactions and government deals.

Ripple’s ODL Dilemma: Is XRP Losing Its Edge?

Ripple’s new stablecoin, RLUSD, is a prime example of this strategy. Designed exclusively for institutional use, it’s clear Ripple is betting big on banks and corporations rather than the average crypto trader. Schwartz has made it clear: RLUSD will be “only ever available” to these major players, reinforcing Ripple’s commitment to high-level finance.

But Ripple’s journey isn’t all smooth sailing. The ODL service, which uses XRP to streamline cross-border payments, has hit a snag. Court documents suggest Ripple might be shifting from XRP to USDT for these transactions, sparking debate about its liquidity strategy and raising eyebrows about its future direction.

Meanwhile, the XRP Ledger (XRPL) is struggling in the retail and DeFi spaces. The XRPL’s market cap recently nosedived to $80 million, largely due to its inability to attract interest in the DeFi and meme coin arenas. Artur Kirjakulov, CEO of XPMarket, argues that, unlike Ethereum and Solana , XRPL is failing to capture the retail trader’s attention, which has hampered its growth.

Ripple’s Academic Push Amidst U.S. XRP Adoption Slowdown

Despite a legal victory earlier this year, which clarified that XRP sales don’t always violate securities laws, Ripple’s adoption in the U.S. has been slower than expected. Many firms are sticking with established stablecoins like USDT rather than jumping on board with XRP.

On the academic front, Ripple is doubling down with its University Blockchain Research Initiative (UBRI) , now partnering with Yonsei University in South Korea. This new partnership will see Yonsei launch an XRP Ledger validator and engage in cutting-edge blockchain research, expanding Ripple’s global academic network.

On the Flipside

• While Ripple is focused on institutional adoption, it risks alienating the retail market, which often drives significant price appreciation in cryptocurrencies.
• The XRPL’s failure to attract significant interest in the DeFi space could limit its potential for growth and innovation.
• Despite the legal victory, Ripple’s adoption in the U.S. remains relatively slow.

Why This Matters

Ripple’s focus on institutional deals and its launch of the RLUSD stablecoin highlight a shift from retail to high-stakes financial transactions. This could set new standards for institutional blockchain adoption and impact how major financial players interact with crypto technologies.

To learn more about the legal battle between Ripple and US regulators and the accusations of unfair targeting of cryptocurrency, read here: 
Ripple CLO Defends Crypto, Exposes TradFi Money Laundering

Curious to learn more about Ripple’s new stablecoin, RLUSD, and why it might not be available to everyone, read here:
Why Ripple’s RLUSD Stablecoin Could Be Off-Limits for Us Plebs