The Crypto Basic

Ripple CTO Emeritus David Schwartz clarified that activities such as RLUSD transactions, RWA tokenization, and bridging on the XRP Ledger do not directly affect XRP’s price.

His remarks sparked a broader discussion about how developments like RWA tokenization and RLUSD activity may influence XRP’s market value. 

The debate over the drivers of XRP’s value has intensified as several initiatives emerge on the XRPL. Supporters often highlight developments such as RLUSD transaction, tokenized real-world assets, and cross-chain bridging as catalysts that could eventually push XRP higher.

However, Schwartz recently addressed a misconception surrounding these developments.

No benefit from their direct impact. But I think those things can sometimes have massive indirect impacts.

— David 'JoelKatz' Schwartz (@JoelKatz) March 13, 2026

Key Points

• Ripple CTO Emeritus Schwartz says token burning does not directly increase the price of a crypto asset.
• He stresses that RLUSD transactions, RWA tokenization, and XRPL bridging do not directly affect XRP’s market value.
• Despite agreeing on the lack of direct impact, he highlighted the potential for major indirect effects.
• Increased network activity could still propel XRP adoption and ultimately support the price over time. 

Token Burns Do Not Impact Price 

The discussion began after a community member suggested that instead of conducting share buybacks, Ripple should burn the XRP held in escrow to support holders.

In response, Schwartz explained that burning tokens does not automatically drive price appreciation. To illustrate his point, he shared a chart comparing XRP and XLM price movements between January 2019 and March 2020. 

During that period, both assets moved in similar directions, even though Stellar burned nearly half of its total supply. According to Schwartz, the chart showed no clear price effect from the burn.

RLUSD, RWA Tokenization, and XRP Bridging Have No Direct Impact on XRP Price 

His comments sparked further discussion within the community. Some observers, like independent blockchain specialist Spade, interpreted his view to mean that token burns do nothing for price performance. 

From this perspective, Spade argued that XRPL-based initiatives, including RLUSD activity, RWA projects, and XRP bridging, should also have no impact on XRP because their only direct effect is the burning of small transaction fees. 

Schwartz largely agreed with the technical premise, emphasizing that these projects do not have a direct impact on XRP’s price. For context, every transaction on XRPL consumes a tiny fee paid in XRP, which the protocol permanently destroys to prevent spam. 

Despite the burn effect from RLUSD, bridging, and RWA tokenization, Schwartz acknowledged that these initiatives do not create direct upward pressure on XRP’s price through the burn mechanism alone. 

They Offer Massive Indirect Impacts

Nonetheless, he stressed that the indirect effects could be substantial. As stablecoin payments, tokenized assets, and bridging services expand on the XRP Ledger, they could attract more users, including developers and institutions, to the network. 

Over time, this growth may increase ecosystem activity and liquidity, potentially strengthening XRP’s role within the broader financial infrastructure. In essence, Schwartz’s view suggests that ecosystem adoption, not fee burning, is the more meaningful factor that could influence XRP’s long-term value. 

A debate has erupted within the XRP community suggesting that XRP may be experiencing deliberate price manipulation.

The claim came from XRP community figure Arthur, who argued that the asset’s recent trading behavior follows a repeated pattern that appears too consistent to be random. Notably, he shared a historical chart to support his argument.

Key Points

• XRP community debates claims of systematic price manipulation by unknown actors.

• Arthur cites repeated surges and drops around U.S. market opens as suspicious.

• Critics argue drops reflect normal liquidity shifts and profit-taking, not manipulation.

• Despite major announcements involving Ripple, XRP remains roughly 44% below its recent highs.

XRP Repeated Pattern Pump and Dump

According to Arthur, XRP repeatedly surges toward key resistance levels before the U.S. trading session opens, only to quickly reverse and drop afterward.

He described the pattern as occurring multiple times in recent market activity since February, and continuing this month. In eight instances, XRP’s price dipped just after the U.S. market opened.

To him, the frequency indicates systematic price control rather than organic trading behavior. He questioned whether this could represent what he called a “new Jane Street playbook.”

The commentator also highlighted a disconnect between XRP’s price performance and recent developments surrounding Ripple.

Despite major announcements involving Ripple, including billion-dollar acquisitions and continued inflows via ETFs, Arthur noted that XRP remains roughly 44% below its recent highs. Each attempted breakout faces strong selling pressure.

Community Disagrees on Manipulation Claims

However, not everyone in the discussion agreed with the manipulation theory. Another market participant, Robert W, responded that the pattern may simply reflect normal market dynamics rather than coordinated trading activity.

He argued that similar price movements can often occur across multiple assets when liquidity from the United States enters the market.

In his view, the repeated price drops are more likely explained by profit-taking and liquidity shifts rather than a coordinated strategy by institutional trading firms.

Arthur Doubles Down on His Position

Arthur rejected this explanation, insisting that the repeated sequence appears too precise to be coincidental.

He claimed the pattern occurred nine separate times, each following periods of accumulation accompanied by a large number of leveraged long positions. According to him, this consistency suggests something more deliberate could be influencing the market.

Absolutely not agree with you. This pattern happened 9 times exactly after accumulation with high quantity of leverage long positions open. This is not coincidence

— Arthur (@XrpArthur) March 13, 2026

Arthur called on several well-known commentators including Vincent Van Code, Crypto Eri, BankXRP, Digital Perspectives, and Chad Steingraber to examine the chart more closely.

Concerns About Crypto Market Structure

The debate also triggered commentary about the relationship between crypto technology and market prices.

Another participant, Mortoom, argued that the crypto market today is largely speculative, noting that many meme coins rank among the top 100 assets despite having little real-world utility.

Arthur responded that this dynamic may eventually change as clearer regulations emerge for the industry. Notably, efforts are ongoing in the U.S. to establish clear regulation via the Clarity Act.

Once regulation kicks in I think it will change

— Arthur (@XrpArthur) March 13, 2026

Daily XRP payments on the XRPL have now approached the 3 million mark despite the persistent price struggles.

This year has not been favorable to XRP and other altcoins, as the global crypto market cap has lost more than $551 billion year-to-date. XRP contributed $26.39 billion to this figure, representing a 4.78% share, while holding a lower market dominance of 3.576%. This means XRP has declined more than the broader market this year.

Despite the bearish trend, activity on the XRP Ledger has only picked up, especially amid multiple upgrades in the past few months, such as Permissioned Domains. Specifically, daily XRP payments recently crossed 2.5 million, approaching the 3 million mark.

Key Points

• Amid the ongoing downtrend, XRP has suffered a higher decline rate than the broader crypto market, losing $26.39 billion in market value this year.
• Despite the downward price action, activity on the XRP Ledger has only picked up amid multiple upgrades in the past few months, such as Permissioned Domains.
• After successful XRP payments dropped below the 1 million mark in December amid reduced on-chain activity, the metric has only increased this year.
• As this rise persists, daily XRP payments recently hit a 1-year peak of 2.7 million, approaching the pivotal 3 million mark.

XRP Down 24% in 2026

XRP Treasury firm Evernorth spotlighted this bullish momentum in a recent disclosure, as XRP’s attempts at a price recovery continue. When XRP began 2026 on a bullish note, market participants expected a full-blown rebound campaign that could help the token reclaim $2 and $3.

Interestingly, the token successfully recovered above $2, reaching a peak of $2.4 in early January. However, this level faced intense resistance from the bears, as the broader market momentum lost steam. Currently trading for $1.39, XRP has since dropped 42% from the $2.4 peak, still struggling to recover to $2.

XRP Payments See a Resurgence

Evernorth has now pointed out that while the market awaits a price rebound, activity on the XRP Ledger has picked up already. According to Evernorth’s commentary, daily XRP payments have closed in on the 3 million mark as of the current week. The firm stressed that this represents a marked uptick from the 1 million average in mid-2025.

On-chain data provided by XRPScan confirms this disclosure. Notably, at the start of 2025, amid the uptrend that began after Donald Trump’s victory in November 2024, daily XRP payments saw gradual spikes, rising from about 1.1 million to a high of 2.5 million by mid-January 2025. 

After fluctuating between 1.3 million and 2.3 million per day from February to April 2025, daily XRP payments collapsed further to the lows around 1 million, even occasionally dropping below the 1 million mark in June and July. While a recovery ensued in Q4 2025, it was largely modest, and daily payments still dropped below 1 million in December 2025.

An observable uptick occurred at the start of this year, with daily average XRP payments ranging from 1.5 to 2 million in January 2026 and recently crossing the 2.7 million level for the first time since December 2024.

A top XRP critic has argued that owning XRP effectively funds the corporate ambitions of Ripple Labs rather than directly benefiting token holders.

The criticism came from Zach Rynes, community liaison at Chainlink. In a post on X, Rynes outlined what he described as a structural conflict between token holders and equity shareholders in projects where both exist.

Key Points

Token Holders vs Equity Investors

According to Rynes, when a company sells both tokens and equity, it creates two stakeholder groups whose economic interests may not always align. Equity investors typically have legally enforceable rights to profits, while token holders often do not.

As a result, when a company generates revenue, the value may ultimately flow to equity holders through mechanisms such as dividends or share buybacks rather than directly benefiting token investors.

Rynes argued that this dynamic applies to Ripple’s relationship with XRP. He noted the company has spent years selling XRP to the market while using the proceeds to fund corporate activities. These include acquisitions and stock buybacks that primarily benefit Ripple shareholders.

In the latest episode, Ripple is orchestrating a $750 million share buyback, elevating its valuation to $50 billion. Interestingly, just days before the announcement, Ripple moved 200 million XRP (about $280.8 million) to another wallet.

The transfer happened after the company unlocked 1 billion XRP from escrow on March 1 and re-locked 700 million XRP two days later.

Notably, in 2025, Ripple bought the prime brokerage platform Hidden Road for $1.25 billion and the treasury management firm GTreasury for $1 billion.

Claims About XRP Economic Role

Rynes also argued that holding XRP does not necessarily give investors full exposure to the ecosystem Ripple is developing. According to him, the company’s equity, rather than the token, represents direct ownership in the firm’s growth.

He further pointed to past court filings in which Ripple stated that the bridge currency use case of XRP is demand neutral. This claim indicates the token’s utility does not necessarily translate into price appreciation.

Chainlink Comparison

The Chainlink representative contrasted this structure with the design of the Chainlink ecosystem, where incentives center around the LINK token rather than company equity.

He also highlighted what he described as Chainlink’s strong position in decentralized finance infrastructure, noting collaborations with major institutions including SWIFT, DTCC, Euroclear, UBS, and JPMorgan Chase.

The remarks add to the ongoing rivalry between supporters of the XRP ecosystem and Chainlink advocates.

While Rynes framed XRP as a token that primarily benefits Ripple’s corporate strategy, supporters of XRP maintain that the token’s role in cross-border payments and liquidity provisioning remains central to its long-term value proposition.

XRP recently fell below the $1.40 level, triggering a wave of liquidations across leveraged markets and wiping out roughly $2 million in long positions. 

Yesterday, XRP investors briefly breathed a sigh of relief after the token overcame the bearish pressure that had weighed on its performance in recent days. As a result, XRP climbed from $1.37 to $1.45, triggering liquidations among traders who had bet against the asset.

However, the relief lasted only briefly. Shortly after the rally, XRP surrendered most of its daily gains and slipped back below the $1.40 level. This time, long-position traders bore the brunt of the pullback. 

Key Points 

• XRP recently slipped below $1.40, triggering major liquidations in the derivatives market. 
• Long positions accounted for 57.12% of the $3.51 million total XRP liquidations recorded during the period.
• Short traders accounted for the remaining $1.51 million, or 42.88% of the liquidations.
• The largest wipeouts occurred on Binance, which recorded $1.6 million in XRP liquidations. 

$2M XRP Long Bets Wiped Out 

As the price dropped to around $1.39, traders expecting further upside were hit the hardest. Data from CoinGlass shows that roughly $3,820 in long positions were liquidated within the past hour, while short sellers recorded no liquidations during the same period.

Over a broader timeframe, the impact was more significant. In the past 24 hours, approximately $2 million in XRP long leveraged positions were liquidated. 

Notably, long liquidations accounted for 57.12% of the $3.51 million total XRP liquidations recorded over the past day. Meanwhile, short-position traders accounted for the remaining $1.51 million, or 42.88% of total liquidations. According to CoinGlass data, the largest liquidations involving XRP occurred on Binance, the world’s largest crypto exchange. Binance accounted for $1.6 million of the $3.51 million total XRP liquidations.

Meanwhile, other major exchanges also recorded notable liquidations. Bybit followed with $1.05 million, while Bitget and OKX reported $422,440 and $278,740, respectively. 

It is worth noting that XRP’s liquidation imbalance contrasts sharply with the broader crypto market trend, where short traders accounted for the majority of liquidations over the past day. For context, the total market liquidation reached $371 million, with $206 million from short positions and $164 million from long positions.

Potential XRP Liquidations 

Although futures traders, particularly those holding long positions, have already incurred significant losses, further liquidations may still occur if XRP continues to decline.

Data from CoinGlass’ liquidation heatmap indicates that about $39.84 million in XRP long positions could be liquidated if the price falls to $1.35. Moreover, potential losses could climb to $46.43 million if the price drops further to $1.30. 

Conversely, a rebound could trigger liquidations on the opposite side of the market. If XRP rises to $1.42, approximately $18.81 million in short positions could be wiped out. Furthermore, if the price rallies to $1.45, as much as $38.19 million in short bets could face liquidation. 

SBI Holdings has expanded its initiative to reward shareholders with XRP by adding another group company, SBI ARUHI, to the program. 

The initiative, unveiled recently, implies that shareholders of SBI ARUHI can now receive XRP as part of their shareholder benefits. 

Key Points

• SBI Holdings has added SBI ARUHI to its XRP Shareholder Benefit Program.
• Shareholders can receive up to 1,000 yen worth of XRP through the firm’s crypto trading arm.
• SBI ARUHI operates as a major mortgage bank that collaborates with homebuilders and real estate agents who refer individuals seeking mortgage loans.
• The Japanese financial group continues to drive XRP adoption in Japan and recently launched a blockchain-based bond initiative that rewards investors with XRP.

SBI Holdings Adds SBI ARUHI to XRP Shareholders Benefit Program

A well-known XRP community commentator, Crypto Eri, highlighted the development on social media. According to her commentary, SBI Holdings CEO Yoshitaka Kitao has broadened the company’s XRP distribution strategy by adding SBI ARUHI to its shareholder benefit program.

Through this initiative, shareholders of the mortgage lender can now receive XRP as part of their rewards, further integrating the digital asset into SBI’s corporate ecosystem. Notably, the expansion follows the launch of SBI Holdings’ 2026 shareholder benefit program, which allows investors across its subsidiaries to earn XRP as part of their rewards.

According to the official announcement, investors who hold at least 100 shares in the SBI Group as of March 31, 2026, will receive 500 yen worth of XRP. Meanwhile, those who hold 1,000 shares and have maintained the position for more than 1 year will receive 1,000 yen in XRP. The rewards will be distributed through SBI’s crypto trading subsidiary, SBI VC Trade.

With SBI ARUHI now included in the program, its shareholders can also participate in the XRP shareholder reward initiative.

What This Means for XRP

For context, SBI ARUHI is a publicly traded mortgage bank and a key subsidiary of the SBI Group. The firm operates a B2B2C sales model, collaborating with homebuilders and real estate agents who refer individuals seeking mortgage loans. Through this structure, it connects prospective homebuyers with financing solutions.

Additionally, the company maintains a strong nationwide presence in Japan. Its network includes about 100 physical locations, roughly 80 of which are franchise outlets run by partners such as insurance companies, judicial scrivener corporations, mobile phone retailers, and housing-related businesses. 

By including the mortgage lender in the XRP shareholder benefit program, SBI Holdings could significantly expand the asset’s visibility among a large base of investors and corporate participants linked to Japan’s housing finance market.

SBI Continues Driving XRP Adoption in Japan

Meanwhile, SBI Holdings continues to gain recognition within the XRP community as it expands access to the digital asset in Japan. The financial group has long supported XRP through its crypto subsidiary, SBI VC Trade, which already uses the token for cross-border remittance services.

Furthermore, the company has taken additional steps to promote adoption. Last month, it launched a $65 million blockchain-based bond offering that provides investors with instant XRP rewards upon subscription. 

Now, with the expansion of its shareholder benefit program, SBI Holdings is distributing XRP directly to investors across its subsidiaries, including the newly added SBI ARUHI. This further strengthens the asset’s presence in the Japanese financial ecosystem. 

Attorney Bill Morgan has weighed in on discussions surrounding the possible classification of cryptocurrencies such as XRP and Bitcoin as financial products.

He believes such a move could create unintended consequences for the technology. His comments came in response to reports that Japan may move toward classifying Bitcoin as a financial product under its regulatory framework.

Morgan said the issue is not limited to Bitcoin but could extend to other major cryptocurrencies, including XRP and Solana. According to him, placing these assets within a traditional securities regulatory framework could undermine some of their core technological strengths.

Key Points

• Attorney Bill Morgan warns that classifying XRP as a financial product could undermine some of the asset’s core technological strengths.

• Morgan says strict financial product rules could limit XRP’s efficiency as a fast, low-cost bridge currency.

• He notes that the definition of “financial product” varies globally, with Japan and Australia taking different regulatory approaches.

• Meanwhile, the SEC and CFTC have agreed to coordinate crypto oversight to reduce regulatory overlap in the U.S.

Concerns Over XRP Utility

Morgan explained that if XRP were integrated into a securities-like regulatory framework by being labeled a financial product, it could create disadvantages for some of its primary use cases.

XRP is a fast and low-cost bridge currency for moving value across different financial systems. If strict financial product regulations were applied directly to the asset itself, Morgan suggested it could affect how efficiently the network functions.

He noted that such classification could reduce some of the flexibility that allows XRP to operate as a rapid settlement tool.

Differences in Global Regulatory Approaches

Morgan also pointed out that the term “financial product” does not necessarily carry the same meaning across different jurisdictions. For example, the interpretation in Japan could differ from the way the concept applies within Australia’s regulatory framework.

He said it would be a negative outcome if cryptocurrencies like Bitcoin or XRP were classified as financial products under Australian law.

However, Morgan added that such a scenario appears unlikely based on his understanding of current legislative developments in Australia.

Australia’s Crypto Legislation Targets Intermediaries

Morgan explained that the crypto legislation recently passed by the Australian Parliament, which is currently under review by a Senate committee, focuses primarily on regulating intermediaries rather than the crypto assets themselves.

The rules aim to determine when companies or service providers must obtain an Australian financial services license. The legislation does not seek to redefine cryptocurrencies like XRP or Bitcoin as financial products.

Morgan recently discussed these regulatory developments during a presentation at the Wave of Innovation XRP 2026conference held in Sydney.

SEC, CFTC Strike Pact to Coordinate Crypto Rules

Meanwhile, in the United States, efforts are underway to define crypto rules through the Clarity Act.

This week, the U.S. SEC and CFTC signed an agreement to coordinate how they regulate financial markets and digital assets. The deal aims to reduce years of overlap between the two regulators by aligning how they create rules, supervise firms, and enforce laws where their responsibilities intersect.

Under the Joint Harmonization Initiative, the agencies will work together to clarify how financial products are classified, update clearing and margin rules, simplify reporting requirements, and strengthen oversight of trading platforms. The effort also includes building a regulatory framework specifically for crypto assets and emerging technologies.

Officials say the goal is to create a more consistent and streamlined regulatory system. The move could reduce uncertainty about which regulator oversees digital assets and make it easier for companies to operate across crypto and traditional financial markets.