XRP is facing renewed criticism over its tokenomics and valuation, even as Ripple pushes the XRP Ledger into the emerging market for AI-agent payments. Crypto trader Moody Hank argued on June 14 that XRP may still be expensive even near the $1 level, citing the token’s large supply, escrow structure and Ripple’s continued holdings. The trader's comments highlight ongoing concerns about the asset's long-term utility and price sustainability despite recent market gains.

Tokenomics and Supply Concerns

Moody Hank pointed to XRP's total supply of 100 billion tokens, with about 58 billion currently circulating and roughly 36 billion still held in escrow. He criticized the pre-mined launch structure and argued that Ripple’s monthly escrow unlocks create a steady source of selling pressure. "Every single month Ripple unlocks up to 1 billion XRP from escrow," the trader said, adding that although much of it is relocked, the remaining amount can still enter the market.

The trader also questioned whether the XRP Ledger requires the XRP token to function, arguing that institutions using Ripple’s payment products can settle in local currencies. "The token is optional infrastructure, not essential utility," the trader said.

Ripple Expands Into AI Payments

The criticism arrives as Ripple expands its focus on artificial intelligence-linked payments. Ripple this week unveiled its XRPL AI Starter Kit, a new developer toolkit aimed at enabling AI agents to send and receive payments through the XRP Ledger. The package includes XRPL documentation access, Claude-powered wallet and payment tools, and support for x402 payments using XRP and RLUSD.

This launch reflects Ripple's push into AI-driven commerce, positioning XRP Ledger as payment infrastructure for autonomous AI agents.

Market Performance and Outlook

Crypto chart analyst Ali Martinez said XRP is trading inside a symmetrical triangle pattern. A breakout from the pattern could trigger a 14% price move. Since February 28, XRP has lost 15.1%, compared to a drop of 12.3% in Ethereum and Bitcoin's 3.1% fall.

Ripple's XRP token continued its strong downward trend last week, hovering at its lowest level since November 2024. The asset has dropped in five consecutive weeks and is down 70% from its highest point last year. This decline persists despite positive developments within the Ripple ecosystem, such as the Ripple USD stablecoin achieving $1.7 billion in assets and a 90% jump in 30-day transfer volume to $4.8 billion.

XRP ETF Inflows Surge

XRP ETFs have added $13 million in assets in June following an addition of $132 million in May, marking the third consecutive month of inflows. The net cumulative figure has jumped to $1.44 billion. The Bitwise XRP ETF leads with $296 million, while Canary's XRPC holds $254 million. These inflows present a sharp contrast to Spot Bitcoin and Ethereum ETFs, which have shed over $3 billion and $1 billion respectively this year.

Ripple Labs Valuation Diverges

A key risk for XRP is the disconnect between the token and Ripple Labs. Ripple Labs grew its valuation to $50 billion in March after implementing a $750 million buyback, having previously achieved a $40 billion valuation after raising cash from Citadel. It remains unclear whether acquisitions like GTreasury and Hidden Road have driven a corresponding surge in network activity.

Technical Indicators Signal Further Downside

Technical analysis suggests XRP has further downside potential. The token is nearing a death cross pattern on the weekly chart as the spread between the 50-week and 200-week moving averages narrows. Additionally, a double-top pattern at $3.3981 with a neckline at $1.5723 implies a potential drop to the psychological level of $1.00. If this support fails, XRP may fall to $0.50, matching its lowest point in November 2024.