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Ripple Business Model: Demand for XRP Will Increase Its Price

Crypto researcher SMQKE highlighted an internal Ripple document stating that the company’s business model is built on sustained XRP demand, which is fundamentally linked to the asset’s functional use within the network.

The page, titled “XRP Demand Examined,” outlines how Ripple structured its approach on the premise that adoption of its protocol would create sustained demand for XRP, leading to appreciation in its value.

The document specifies that Ripple Labs’ model is based on the belief that “demand for XRP will increase (resulting in price appreciation) if the Ripple protocol becomes widely adopted.”

It further states that for XRP to experience organic demand, rather than speculative interest, the asset must provide genuine utility to its holders. According to the excerpt, XRP’s two core functions are maintaining network security and serving as a bridge currency for cross-ledger transfers.

Focus on Real Usage Over Speculation

The section describes how XRP’s role in securing the network is achieved through mechanisms that impose small costs on spam or denial-of-service attacks.

Each transaction burns a minute amount of XRP, while network reserves and transaction fees act as deterrents against abuse. These measures, the document notes, ensure system reliability and promote efficient processing of legitimate transactions.

In the same segment, Ripple emphasizes that value appreciation is not expected to occur by default or through speculative behavior, but through increasing adoption of the protocol and sustained usage of XRP for its intended functions. This approach underscores that market value is secondary to real-world integration and network participation.

Community Reaction to the Researcher’s Post

In the discussions that followed the researcher’s post, several community members pointed out the significance of Ripple’s wording.

One user stated that real adoption and demand drive the network, not just speculation, while another, Cedric Beau, highlighted that the document proves XRP’s price potential is conditional on actual utility. He noted that Ripple clearly differentiates between speculation and organic demand, stressing that if XRP is not used at scale, appreciation cannot occur.

The resurfaced document reinforces a long-standing position that Ripple’s success is tied to measurable use cases and integration rather than assumptions of price movement. XRP’s demand, according to Ripple’s own materials, must stem from its functions as a security mechanism and a bridge asset.

For observers and market participants, the message remains consistent: network activity and adoption determine demand, and therefore any expectation of long-term appreciation is tied directly to utility.

Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are advised to conduct thorough research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.


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Solomon Odunayo
Solomon Odunayo
Solomon is a trader, crypto enthusiast, and analyst with over seven years of experience in the industry. He strongly believes that crypto assets and the blockchain will continue to gain prominence. At TimesTabloid.com, he focuses on news, articles with deep analysis of blockchain projects, and technical analysis of crypto trading pairs.
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