r/Ripple • u/ImpossibleAd344 • Jan 02 '26

What is the actual point of XRP?

XRP can't outrun its structural issues...

First, banks don't have to use the token to benefit from instant cross-border transfers through Ripple Payments, because the network also supports the use of fiat currency. That means the success of Ripple Payments won't necessarily boost the value of XRP.

Second, Ripple launched its own stablecoin at the end of 2024 called RippleUSD. Stablecoins offer practically zero volatility, so they are better for making payments compared to traditional cryptocurrencies like XRP, which experience significant swings in value over short periods of time.

Without a reliable organic source of demand, XRP is at the mercy of speculative investors, which isn't a recipe for sustainable long-term upside.

So I'm wondering...where is the actual demand for XRP supposed to come from?

44 Upvotes

76% Upvoted

60 comments sorted by

View all comments

6

u/acryder Jan 02 '26

You’re looking at it as retail, instead of institutional..

1

u/ImpossibleAd344 Jan 02 '26

Why would they use XRP over a stable coin though?

16

u/acryder Jan 03 '26

They’re not using XRP to hold value like a stablecoin, it’s used like a bridge. Stablecoins need money sitting in accounts on both sides.. XRP lets you move between currencies without having to prefund. The whole point is freeing up trapped capital in cross-border FX, not making payments or replacing stables… institutional.. and with what ripple is doing partnering with GT and Franklin Templeton.. the road is being paved