Ripple’s XRP Attempts Recovery After Plunging 12% on DeepSeek AI Model Fears

XRP plummeted from a Sunday high of $3.14 to a Monday low of $2.75 as tech stocks and crypto collapsed amid fears about the implications of DeepSeek.

Ripple’s XRP is making a comeback following the release of DeepSeek, a low-cost Chinese artificial intelligence (AI) model, which triggered a broad market selloff.

After reaching a Sunday high of $3.14, XRP sharply declined to a Monday low of $2.75 as tech stocks and crypto prices plummeted amid concerns about the implications of DeepSeek's debut.

But XRP is now attempting a recovery.

The third-largest crypto asset by market cap is changing hands for $3.19 at time of writing, according to CoinGecko. This puts XRP just 6.5% below its all-time high of $3.40, which it hit on January 7th, 2018.

The payment token’s surge comes as Ripple chief executive Brad Garlinghouse is calling for a federal crypto reserve to include altcoins like XRP, rather than exclusively holding Bitcoin.

“Some thoughts on [Bitcoin] maximalism. Let me say this as clearly as I can: the crypto industry has a real shot, here and now, to achieve the many goals we have in common – if we work together instead of tearing each other down. This is not, and never will be, a zero-sum game.

On Tuesday, Ondo Finance (ONDO), a decentralized finance (DeFi) protocol that aims to tokenize real-world assets (RWAs), announced that it will soon launch its Short-Term US Government Treasuries (OUSG) fund on the XRP Ledger.

“We are bringing OUSG to the XRP Ledger with Ripple. OUSG, an institutional-grade product backed by tokenized US Treasuries and BlackRock’s BUIDL fund, represents a natural fit for a blockchain purpose-built for institutional adoption.”

ONDO is trading for $1.42 at time of writing, up 9.6% in the last 24 hours.