Researcher Says XRP Volatility Could Drop Sharply Once This Happens

Crypto researcher and XRP community member SMQKE claims XRP’s price volatility will drop significantly over time as demand rises. 

In a recent commentary, he pointed to an unnamed document that mentions how both Ripple and IBM have faced issues with how unpredictable crypto assets can be due to their penchant for higher volatility.

XRP Volatility to Drop as Demand Spikes?

According to the document, Ripple linked XRP’s volatility to the fast growth of its ecosystem and a surge in demand. However, the report claimed Ripple expects this sharp volatility to calm down as XRP use becomes steadier. 

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It also said IBM has taken a different approach by trying to develop stable digital assets. The document described how stablecoin issuers back these assets to currencies like the dollar, euro, or pound, or even gold, so they would boast more price stability. 

It added that IBM wants to support cross-border transactions not only in fiat but also with digital currencies, including those used as bridge assets. Notably, this is something that could widen their practical use.

SMQKE’s latest disclosure built on a previous X post in which he referred to a 2022 paper by Alex Gerch, an Associate Professor at the University of Malta, titled Education and Blockchain. Specifically, the paper looked at how schools could accept tuition payments through blockchain networks. 

‼️XRP AND XLM WILL MOST LIKELY HAVE A SET FIAT VALUE IN THE FUTURE TO ENABLE MONEY TRANSFERS VIA BLOCKCHAINS‼️

See for yourself.😶‍🌫️

“Fixed Value in Terms of Fiat Currencies—> XRP and XLM”✅

Documented.📝👇 pic.twitter.com/KAH7ade5eF

— SMQKE (@SMQKEDQG) July 3, 2025

While most institutions still don’t accept crypto directly, Gerch explained that platforms like Ripple and Stellar could support transfers pegged to fiat values. SMQKE took this as a sign that XRP and Stellar’s XLM might eventually hold fixed values to make blockchain-powered payments easier and more predictable.

Circulating Claims of XRP Being a Stablecoin

Notably, several XRP community pundits have also argued that XRP was built to act as a stable bridge asset. Moreover, a November 2021 report from the World Bank controversially labeled XRP as a stablecoin, mainly because of its low transfer fees and quick settlement times of just a few seconds. 

Also, in a post from November 2024, well-known commentator WrathofKahneman, or WOK, made similar statements when he answered a question about why some individuals doubt XRP could yield substantial gains for investors.

He said XRP hasn’t moved much and trades in a narrow band, which makes it feel like a stablecoin at times. He explained that anyone hoping to profit from XRP needs to either trade it smartly or rely on broader adoption that pushes the price higher. However, he did not consider XRP a stablecoin, only that it sometimes behaves like one because of its slow price changes.

Some Disagree 

Importantly, not everyone in the XRP community agrees with the stablecoin classification. In February 2025, Panos Mekras responded to the debate, firmly stating that XRP could never be a stablecoin. 

1. Ripple is a minority on XRPL, they have no control of it and what can be done to the network or XRP. So it's unrelated what Riipple wants or does, they are just one of the hundreds of projects on XRPL working on their own business model.
2. XRP can never be a stablecoin.

— Panos 🔼{X}🇬🇷 (@panosmek) February 18, 2024

Notably, XRP’s price is up over 300% since November 2024, dispelling the stablecoin claims. However, the price has stayed close to the $2 mark in recent months. 

Despite this, some analysts insist that this range shows natural market trends, as the market has reached a balance between buyers and sellers. Others believe XRP could break out sharply if selling pressure drops and demand keeps rising.