Altcoin
Why Is XRP Price Down 8% Today?
XRP price is once again facing strong selling pressure, crashing more than 8% and moving back to $2.50. The Ripple token fall comes as the XRP Ledger halted blockchain production for nearly an hour on Tuesday. However, Ripple CTO David Schwartz has confirmed that the network has recovered and is almost back to normalcy.
XRP Price Drops Amid XRP Ledger Downtime
On Tuesday, the XRP Ledger faced some downtime for an hour before resuming operations. However, the development was enough to send XRP price down by 8% to its crucial support of $2.50.
With the XRP Ledger halting the block production for an hour, the network activity froze at the ledger height of 93927173. The Ledger has once again resumed normal operations without reporting any loss of transactions or assets.
Ripple CTO David Schwartz acknowledged the development stating: “We don’t know exactly what caused the issue yet”. He further noted that although the consensus was running, the validations were not published which caused the network to drift apart. “Validator operators manually intervened to choose a sane starting point and begin publishing validations from there,” he added.
Ripple Community Celebrates Quick Network Recovery
Commenting on the network recovery, the Ripple CTO referred to the Unique Node List (UNL), a core component of the XRPL consensus mechanism. “Very few UNL operators actually made any changes, as far as I can tell, so it’s possible the network spontaneously recovered. I’m not sure yet,” said Schwartz. Other community members have backed Ripple for this quick recovery. Edo Farina, head of XRP Healthcare, the first healthcare platform built on the XRP Ledger said:
“The $XRP Ledger has been operational for over 110,000 hours since its launch in 2012. With today’s halt, the total downtime where validators failed to agree on transactions reached about 2 hours. That’s 99.999% of efficiency. The MOST efficient blockchain in existence!”
He further clarified that the Ripple network halt wasn’t typically the outcome of network congestion but instead related to the consensus mechanism.
Last week, the XRP Ledger implemented the AMMClawback amendment, a significant upgrade aimed at bolstering the regulatory compliance of its Automated Market Maker (AMM) pools.
Will XRP Price Bounce Back Again?
As of press time, XRP price is down 7.3%, trading at $2.51, with daily trading volumes crashing 41% to $13.11 billion. Furthermore, the Coinglass data shows that XRP futures open interest is down 12.2% to $3.65 billion while the 24-hour liquidations have soared to $21 million.
Earlier this week, Ripple unlocked 500 million XRP amid discussion around XRP reserves. Since the beginning of 2025, XRP has seen strong inflows. Coinshares report shows that the Ripple cryptocurrency has solidified its position as the second-best performing altcoin, recording year-to-date (YTD) inflows of $105 million.
Notably, the digital asset attracted $15 million in inflows just last week, underscoring growing investor interest. Additionally, the push for introducing spot XRP ETF by asset managers Grayscale and Canada’s Purpose Investments has further drawn institutional interest.
Bhushan Akolkar
Bhushan is a FinTech enthusiast with a keen understanding of financial markets. His interest in economics and finance has led him to focus on emerging Blockchain technology and cryptocurrency markets. He is committed to continuous learning and stays motivated by sharing the knowledge he acquires. In his free time, Bhushan enjoys reading thriller fiction novels and occasionally explores his culinary skills.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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