In the ever-evolving world of cryptocurrency, XRP is currently at the center of a heated debate, ignited by a comment from attorney John Deaton. His assertion that XRP is “most hated by institutions, most loved by retail” has sparked lively discussions across social media—especially on X (formerly known as Twitter). But what’s behind this bifurcated sentiment toward XRP?
A Chasm in Sentiment
The duality of XRP’s perception is as striking as it is complex. On one hand, retail investors seem enamored by XRP’s promise and potential. It’s not uncommon to hear them cite its low transaction fees and quick settlement times as reasons for their bullish outlook. According to a recent survey, a significant portion of retail investors see XRP as a sleeping giant, poised to disrupt traditional financial systems.
Conversely, institutional investors appear more skeptical, with many shunning XRP in favor of more established cryptos like Bitcoin and Ethereum. Analysts suggest that regulatory uncertainties and the ongoing legal battles involving Ripple, the company behind XRP, have contributed to this distrust. “Institutions are risk-averse by nature,” says crypto analyst Julia Tran. “The legal clouds hanging over XRP make it a less attractive option for them.”
The Ripple Effect
To understand this divide, one must consider the ongoing litigation between Ripple and the U.S. Securities and Exchange Commission (SEC), a saga that’s been unfolding since December 2020. The SEC alleges that Ripple conducted an unregistered securities offering through the sale of XRP, a claim Ripple staunchly denies. This legal entanglement has cast a long shadow over XRP, potentially scaring off institutional money. As explored in our recent coverage of XRP’s liquidation imbalance, these legal challenges have significant market implications.
Yet, for retail investors, the case presents an opportunity. Many perceive the lawsuit as a temporary hurdle, with the potential for a favorable outcome driving speculative investments. “Retail investors are often more willing to take risks,” notes economic strategist Mark Eldridge. “They’re betting on the possibility that Ripple will win, and XRP’s value will soar.”
A Market in Flux
The XRP saga unfolds against the backdrop of a volatile crypto market. With Bitcoin and Ethereum recently hitting new highs, the wider market sentiment is cautiously optimistic. However, XRP’s performance has been inconsistent. It has experienced dramatic price swings, further fueling the debate over its viability as a long-term investment. This is in line with recent trends seen in Bitcoin, Ethereum, XRP, BNB following Powell’s Fed speech, highlighting the interconnected nature of crypto market movements.
Despite the uncertainty, some industry veterans remain hopeful. “XRP has unique features that differentiate it from other cryptos,” observes blockchain consultant Emma Lin. “Its ability to facilitate cross-border payments efficiently is a game-changer. But it needs clearer regulatory guidelines to thrive.”
Looking Ahead
As we look toward the remainder of 2025, the future of XRP remains uncertain. The outcome of Ripple’s legal battle with the SEC will undoubtedly play a pivotal role in shaping its trajectory. Should Ripple emerge victorious, we might witness a surge in institutional interest. However, a loss could cement XRP’s status as a retail-only darling.
For now, XRP straddles a fine line—loved by the masses, yet largely ignored by the financial elite. The question on everyone’s mind is whether this sentiment split will persist, or if a resolution (legal or otherwise) will finally tip the scales. As the crypto world watches closely, one thing is clear: XRP is far from a forgotten relic. It’s a polarizing force that’s here to stay, at least for now.
Source
This article is based on: XRP Divide: Loved by Retail, Shunned by Institutions – What’s Driving the Sentiment Split?
Further Reading
Deepen your understanding with these related articles:
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- Bitcoiners’ skepticism over institutions isn't going away: Preston Pysh
- BlackRock Sells Bitcoin and Ethereum in Rare Move
Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
