XRP’s biggest threats aren’t just price volatility. The rise of stablecoins since 2020, Ripple’s own launch of Ripple USD (RLUSD) in December 2024, and XRP’s massive circulating supply have combined into a bear case that investors can’t ignore—especially as XR
For XRP investors, the danger isn’t only that the market can fall fast. It’s the specific fear that XRP could slip below $1 this year—and from there, lose value in a way that doesn’t bounce back.
Even with some XRP price targets discussed as high as $100, the bear argument is getting more attention precisely because the downside looks plausible: XRP is trading for just north of $1, and the risk being flagged is a move under that line before the year is out.
A central part of that worry is what has happened to cross-border payments since 2020. Stablecoins—dollar-pegged digital currencies—have surged in use, changing how investors judge where XRP fits.
These stablecoins are now worth upward of $300 billion. U.S. Treasury Secretary Scott Bessent is also looking ahead, expecting the stablecoin market to be worth $3 trillion by 2030. The core issue for XRP is simple: stablecoins can take on many of the same functions. especially making cross-border payments. but stablecoins always trade at $1. while XRP can vary widely in price.
That stability matters when you’re moving a lot of money. It also helps explain why the shift hasn’t gone unnoticed inside Ripple, the company behind XRP.
In December 2024, Ripple launched its own stablecoin called Ripple USD (CRYPTO: RLUSD). The value of Ripple USD is described as $1.7 billion—just 18 months after launch. And once it debuted, some analysts theorized that Ripple USD could cannibalize XRP’s value.
The bear case then widens from competition to XRP’s supply math. The circulating XRP coin supply is listed at 62 billion. For comparison, Bitcoin’s circulating supply is given as 20 million.
The concern goes beyond today’s level. If XRP makes another run at $4—“just as it did last year”—the calculation presented implies a market cap of $250 billion. That would put XRP above Ethereum’s market cap, which is stated as $240 billion.
But that’s exactly where the argument says the rally hits a brick wall. For XRP to go higher, crypto investors would need to view XRP as more valuable than Ethereum. The text says that’s highly unlikely.
Supply is the next pressure point. While the circulating supply is 62 billion. the maximum lifetime supply is described as 100 billion. leaving “plenty more XRP just waiting to flow into the market.” The claim is that Ripple has managed XRP’s coin supply reasonably well—citing that in June 2021 the circulating supply was 46 billion—and that over five years. XRP’s coin supply has grown at an annual rate of 6%.
Still, the bear case asks a difficult “what if.” If institutional adoption takes off, the coin supply might need to increase vastly, which could put a tighter cap on future price.
Put together. the fears form a single storyline: stablecoins offer a more predictable way to move money. Ripple has added its own $1-pegged option through Ripple USD. and XRP’s large supply and potential future issuance become obstacles in an environment where investor expectations are hard to defend.
There’s one more blunt reminder embedded in the same argument: cryptocurrencies can and do collapse in value, “never to recover.”
After the warnings, the source turns to a separate prompt—whether to buy XRP stock right now—by pointing to a stock-picking list that does not include XRP.
The Motley Fool Stock Advisor analyst team is described as having identified what it believes are the 10 best stocks for investors to buy now. and XRP “wasn’t one of them.” The pitch ties that recommendation to past performance of earlier Stock Advisor lists. including a reference to Netflix making the list on December 17. 2004 and Nvidia making the list on April 15. 2005. The figures given are: if a reader invested $1,000 based on the Netflix recommendation, they would have $449,393; and for Nvidia, $1,366,006. The note adds that Stock Advisor returns are as of June 4, 2026.
The disclosure portion is explicit: Dominic Basulto has positions in Bitcoin, Ethereum, and XRP. The Motley Fool has positions in and recommends Bitcoin, Ethereum, and XRP, and it has a disclosure policy.
The Bear Case for XRP That Every Investor Should Understand is stated as originally published by The Motley Fool.
XRP Ripple Ripple USD RLUSD stablecoins cross-border payments Scott Bessent cryptocurrency market cap coin supply