- Ripple document confirms XRP price depends directly on growing demand.
- XRP must offer utility to ensure long-term price appreciation.
- Network security and bridge use drive XRP’s organic token demand.
A recently highlighted excerpt from an official Ripple document has sparked renewed debate around the company’s long-term strategy for XRP. According to crypto analyst SMQKE, who shared the information on social media, the document clearly reveals that Ripple’s business model relies on rising demand to drive XRP’s price upward.
The excerpt, taken from Ripple’s publication “XRP Demand Examined,” directly connects XRP’s future price growth with increasing adoption of the Ripple protocol. The company openly claims that its business is founded on the premise that demand for XRP will increase if its payment technology becomes more popular.
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In the document, Ripple confirms that there is only a fixed supply of 100 billion XRP tokens, which cannot be created. Under this framework, Ripple indicates that token scarcity is not sufficient on its own. Rather, the firm perceives long-term demand, specifically organic demand, to be crucial in the long-term appreciation of the asset.
Notably, this document discourages the use of speculative interest by itself. Ripple notes that to ensure long-term value, XRP has to be of utility to the holders. This would include its use in the network as well as a bridge asset in financial transactions.
Ripple Details How XRP Utility Is Tied to Network Security and Adoption
Ripple outlines two specific functions that support XRP’s utility. The first is its role in securing the network. To prevent spam and denial-of-service attacks, Ripple imposes small XRP-based transaction fees, which are destroyed after use. There is also a minimum reserve of 20 XRP that must be provided per account under the network to remain efficient and stable.
The second role is using XRP as a bridge currency. Since it acts as a connection between the various fiat currencies, it facilitates cross-border transactions faster and cheaper.
This feature is essential to Ripple’s objective of influencing world institutions to build its protocol.
Such utility cases fit within the network design detail and are also considered essential determinants of organic demand. Ripple’s strategy hinges on the belief that adoption of its protocol will naturally lead to more use of XRP, which in turn would raise its value.
The disclosure brought forward by SMQKE highlights Ripple’s internal expectation that XRP’s price growth will follow demand. The document’s direct language affirms that Ripple sees utility and protocol adoption as central to increasing the token’s value over time.
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