XRP Ledger Overhauls Core Software as Token Plunges to 52-Week Low — ETF Inflows Tell a Different Tale

XRP Ledger rebrands to xrpld as XRP hits 52-week low of $1.11, RSI at record oversold. Institutional inflows and CLARITY Act bill offer contrasting signals.

The XRP Ledger is undergoing one of its most consequential technical upgrades in years, yet the token itself is mired in a sell-off that has pushed it to levels not seen in over twelve months. With version 3.2.0, the network’s core software has been renamed from "rippled" to "xrpld" — a shift that goes beyond mere branding. The move aims to establish a unified reference implementation for all participants, from validators to infrastructure providers.

Those operators will need to update their systems ahead of the mainnet migration, with the XRP Ledger Operations Team preparing a technical handbook to ensure consensus remains uninterrupted during the transition. The update follows the activation of version 3.1.3 in May 2026, which addressed critical components in the credit protocol and vault systems.

The technical overhaul comes as XRP touches a fresh 52-week low of $1.11, after a 7.55% drop on Friday extended the year-to-date decline to roughly 40%. That marks a 68% retreat from the token's 52-week peak of $3.65. The monthly relative strength index fell to 41.62 on June 6 — the lowest reading ever recorded, below even the 43.75 level seen in 2020 when XRP traded at $0.11. On the 14-day timeframe, the RSI now stands at 23.2, while a separate daily gauge has slumped to 19.7, signaling deeply oversold territory on multiple horizons.

Short sellers have seized on the weakness. The ratio of short positions to long positions has widened to nine to one, dominating trading flows. Yet institutional investors appear to be reading the same data differently.

Spot XRP ETFs in the U.S. recorded net outflows of $5.34 million on June 3, only to reverse course the following day with inflows of $3.83 million. Total assets under management across the seven funds now stand at approximately $1.03 billion. For May, those products collectively attracted $131 million in fresh capital, bringing cumulative inflows to $1.6 billion — a stark contrast to the persistent outflows seen in Bitcoin and Ethereum funds over recent weeks.

That institutional appetite extends to the on-chain picture. The number of wallets holding at least 10,000 XRP reached an all-time high of 332,230, suggesting a growing cohort of long-term holders accumulating despite the price slide.

CLARITY Act Clears Path to Senate Vote

The bearish price action is unfolding against a backdrop of major regulatory progress. The CLARITY Act was placed on the U.S. Senate's legislative calendar on June 1, qualifying it for a floor vote. The bill would reclassify certain digital assets as commodities and place them under CFTC oversight — with XRP explicitly named as a digital commodity. Passage requires 60 votes in the Senate, and the White House has set a target of July 4 for the president's signature.

If the legislation slips, a vote could be delayed until autumn. Analysts at Standard Chartered project that passage could unlock an additional $4 billion to $8 billion in institutional inflows into XRP products, driven by the newfound regulatory clarity.

RLUSD Expands Across 40+ Networks

Meanwhile, Ripple's dollar-pegged stablecoin RLUSD went live on more than 40 blockchain networks on June 4, leveraging the Wormhole Native Token Transfers Framework. The token, which has a circulating supply of roughly $1.73 billion, now spans Ethereum layer-2 networks including Base, Optimism, and the XRPL-EVM sidechain. Ripple maintains direct control over minting and burning across all chains, aiming to provide institutional users with faster settlement and deeper liquidity.

Wall Street Tests Real-World Tokenization

Beyond the stablecoin push, the XRP Ledger has already demonstrated its utility in traditional finance. Ondo Finance completed the redemption of a tokenized U.S. Treasury fund on the ledger, processing the transaction near-instantaneously across borders. The operation involved heavyweight participants including J.P. Morgan and Mastercard, with fiat settlement handled through Mastercard's network and token exchange facilitated by Ripple.

Such use cases could gain mainstream traction if the CLARITY Act becomes law. Currently, tokenized assets worth $3.5 billion reside on the XRP Ledger, underscoring its growing role as infrastructure for real-world asset settlement.

The convergence of technical upgrades, institutional accumulation, and regulatory momentum creates an unusual picture. The short-heavy positioning leaves the token exposed to a potential squeeze if the Senate vote delivers a positive surprise. For now, all eyes are on Washington.