XRP

XRP and Dogecoin Likely to Face Challenges in August and Beyond

XRP & Dogecoin Continue to Trade at Around $3.32 and $0.2231 Respectively as Market Indicators Show Positive Signs

Written By : Pardeep Sharma
Reviewed By : Sankha Ghosh

Overview

  • XRP and Dogecoin face regulatory uncertainty and competition from stablecoins.

  • Limited liquidity and supply pressures could impact long-term growth.

  • Real-world adoption is essential for both cryptocurrencies to sustain momentum.

XRP is trading in the low $3 range, while Dogecoin is around $0.2200 range at the time of writing. Both saw strong gains earlier in the year as the broader crypto market recovered, but the pace of growth has slowed. Trading activity has become less steady, with order books sometimes thin and sudden price swings causing rapid gains or losses. 

This kind of unstable environment makes it harder for long-term investors to stay committed. For the current high prices to hold or rise further, these assets need steady demand, deeper liquidity, and more proof of practical use in real-world situations.

Regulation Remains the Main Obstacle

Government rules and regulations have a big impact on digital assets. For both XRP and Dogecoin, the legal situation is still developing. Countries around the world are introducing stricter requirements for exchanges, token issuers, and stablecoin operators. This can lead to higher compliance costs, changes to how tokens are used, and even limits on access in certain markets. 

Regulators are also paying closer attention to how crypto projects advertise themselves, especially if they offer returns or “yield” products. Without a clear, stable, and widely accepted set of rules, both XRP and Dogecoin will have to operate in an uncertain environment where positive developments can be followed by sudden setbacks.

Competition From Stablecoins and Tokenized Assets

The global conversation about payments and money transfers is shifting toward stablecoins and tokenized versions of real-world assets. Stablecoins have the advantage of maintaining a steady value, which makes them easier for payments, accounting, and savings. Businesses and payment processors are increasingly choosing them over volatile cryptocurrencies for day-to-day transactions. 

As more banks and large companies launch tokenized versions of deposits, funds, and other assets, institutional money may flow more toward these stable-value products. For XRP and Dogecoin price to keep up, they must offer unique advantages in speed, cost, or integration that stablecoins cannot match.

Token Supply and its Impact on Prices

The way each token’s supply works affects its long-term price outlook. XRP has a large fixed supply, with some coins released from escrow over time. These scheduled releases can put selling pressure on the market if demand is not strong enough. Dogecoin’s supply is unlimited, with a set number of new coins created every year. 

Over time, the percentage rate of inflation drops, but it never disappears. In a strong bull market, the new supply can be absorbed, but in quieter periods, it can weigh on prices. Unlike Bitcoin, neither XRP nor Dogecoin has a halving event that reduces the rate of new coins entering circulation, so they rely more heavily on increasing demand to keep prices stable or growing.

Progress in Technology and Real Adoption

XRP has seen important upgrades to its network, including a native automated market maker (AMM) that allows users to earn fees by providing liquidity. It has also introduced more tools for developers to create applications. However, for these improvements to matter, there needs to be a steady increase in real usage through stablecoin integration, wallet features, and exchange support

Dogecoin continues to promote its identity as a simple, payment-focused cryptocurrency, but real-world merchant adoption and customer use are still small compared to stablecoins. Without strong and regular demand from actual transactions, both assets risk falling behind competitors that combine strong branding with everyday usefulness.

Liquidity and Market Structure Challenges

Even when daily trading volumes look high, market depth for both XRP and Dogecoin can be shallow. This means that large trades can move prices more than expected. During times of high volatility, this can lead to sharp price changes and increased slippage for traders. 

Derivatives trading, such as futures and perpetual contracts, can make these swings more extreme as positions are liquidated quickly when prices move against traders. The lack of widely available spot exchange-traded funds (ETFs) for either token in key regions also limits easy access for large investors, reducing the range of buyers and sellers in the market.

Also Read - XRP Price Prediction: Double Digits Possible by 2027?

Developer Activity and Funding Needs

Innovation requires both active developers and reliable funding. XRP price benefits thanks to long-standing network and infrastructure, but it must keep improving its wallet interfaces, developer tools, and grant programs to remain competitive with faster-moving blockchain ecosystems. 

Dogecoin’s development is intentionally slow and cautious, which keeps it simple but limits the addition of new features. In a market where users expect advanced capabilities like smart contracts and cross-chain integration, slower upgrades risk losing attention to newer networks that are more flexible and feature-rich.

Community Power and Institutional Needs

XRP and Dogecoin both have strong communities and a high level of brand recognition. Social media activity and fan support can fuel short-term price rallies. However, large-scale investors such as asset managers and financial institutions look for stability, clear regulations, secure custody solutions, and reliable payment systems before committing large amounts of money. Without meeting these requirements, institutional adoption will remain limited, and the assets will depend heavily on community-driven hype for momentum.

Network Security and Operational Stability

Dogecoin operates using proof-of-work mining and is merge-mined with another blockchain, meaning its security partly depends on external miner incentives. If the price falls while electricity costs rise, miners may reduce participation, which could affect network stability. 

XRP uses a consensus protocol without mining, so it avoids energy cost concerns, but it still depends on active and coordinated validators to maintain network reliability. Both systems need ongoing support from their operators to remain secure and functional.

Seasonal and Short-Term Risks in August

August can be a difficult month for markets due to lower trading volumes as many traders and investors take summer breaks. This thinner liquidity can cause larger price swings when news or economic data is released. Global economic factors, such as inflation reports, central bank meetings, or slowing growth, can quickly affect investor appetite for riskier assets like cryptocurrencies. Since neither XRP nor Dogecoin currently has major new institutional investment products launching, they are more exposed to these swings and the flow of funds on exchanges.

What Could Improve the Outlook

For the situation to improve, both assets need better and more convenient on-ramps for buying and selling, stronger stablecoin support on their networks, and wallet applications that make using advanced features simple for everyday users. 

Dogecoin could benefit from real progress in merchant payment adoption, showing that it can serve its original purpose as an easy-to-use currency. XRP could strengthen its position by growing on-ledger liquidity, expanding stablecoin pairs, and attracting institutional-grade settlement services.

Longer-Term View

While challenges remain, both XRP and Dogecoin have strengths that could support their future. XRP’s speed, low transaction costs, and existing payment connections make it a good fit for certain financial services, provided the supporting infrastructure keeps improving. 

Dogecoin’s wide recognition, community support, and straightforward design give it resilience. The main task ahead is turning these advantages into sustained real-world demand rather than relying mainly on speculative interest.

Also Read - Is Dogecoin the Next Big Thing in Global Payments?

Final Thoughts

Heading into August and beyond, XRP and Dogecoin face a mix of high expectations and significant hurdles. Regulatory uncertainty, competition from stablecoins, limited liquidity, and supply pressures will continue to test both tokens. 

Without clearer rules, better technology adoption, and visible real-world use, they are likely to trade cautiously, responding sharply to market news and economic shifts. The next phase will depend less on hype and more on tangible progress in adoption, partnerships, and infrastructure that can support lasting growth.

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