A new discussion has emerged within the XRP community, questioning Ripple's long-term strategic direction and whether its primary ambitions are indeed centered on the market performance of XRP.
This conversation was sparked by developer Vincent Van Code, who posited that Ripple's core objective has consistently been focused on the XRP Ledger (XRPL) and its native token, rather than on ancillary ventures like stablecoins or cross-border payment solutions.
When will everyone just accept that Ripple endgame has ALWAYS been XRPL and XRP. Not stablecoins, not cross border, just establishing a global liquidity on chain, using XRP, #TheLiquidityTokenXRP
Analysts Suggest Ripple's Strategy Hinges on XRP Growth
According to Van Code's perspective, the company's overarching vision is to establish global on-chain liquidity, powered by the XRPL, with XRP serving as the foundational asset for significant financial transactions. His remarks have revitalized a persistent belief among some investors that Ripple's business model is directly contingent on XRP's valuation.
XRP advocate Digital Asset Investor echoed this sentiment, asserting that the company's success is intrinsically linked to the eventual appreciation of XRP. Although Ripple has consistently refrained from making public price projections for the token, he argued that the company's financial structure strongly indicates the importance of a robust XRP market.
Ripple's cautious approach to price-related discussions is widely perceived as a regulatory safeguard, particularly in light of its history of legal challenges with the U.S. Securities and Exchange Commission (SEC).
However, the company's substantial holdings of XRP, approximately 35 billion in escrow and an additional 5.01 billion readily available, clearly connect its financial well-being to the token's value. At the current trading price of roughly $2.40, each $1 increase in XRP's price would theoretically add approximately $40 billion to Ripple's balance sheet.
Community Divided on Ripple's Strategic Direction
Despite these viewpoints, there is not universal agreement within the XRP ecosystem that Ripple's strategy is primarily driven by XRP's price. Some critics contend that recent corporate decisions appear to contradict the company's stated commitment to its proprietary blockchain.
For example, a prominent community figure, Fishy Catfish, raised questions about why Ripple issued nearly 90% of its RLUSD stablecoin supply on Ethereum instead of the XRPL.
Data from CryptoQuant corroborates this observation, indicating that only 92.5 million RLUSD are currently held on the XRPL, while the total supply approaches 900 million. This decision has led some to interpret Ripple's strategy as a lack of confidence in its native network. Catfish remarked, "Not even Ripple wants to use XRP or XRPL," characterizing the chain as outdated and underutilized.
Conversely, other users maintain that XRP was always intended to function as a bridge asset for cross-border liquidity solutions, a mission that Ripple has promoted since its inception. They are questioning whether the company's new initiatives signal a deviation from that original focus.
Ripple's Underlying Objective Appears to Remain Focused on XRP
Notwithstanding internal divergences, market observers point to Ripple's ongoing efforts to integrate XRP into institutional financial systems. The company's continuing partnerships with entities such as GTreasury, Evenorth, and Japan's SBI Holdings demonstrate Ripple's persistent expansion of practical use cases for the token.
Furthermore, Ripple is reportedly backing initiatives aimed at establishing a significant public XRP treasury. This represents a long-term accumulation strategy designed to mirror how other companies have historically driven value appreciation through controlled supply growth.
While Ripple avoids making explicit connections between its success and XRP's price movements, the majority of analysts concur that the two remain closely intertwined. As the company solidifies its presence in institutional finance and continues to develop liquidity infrastructure around the XRPL, community members perceive increasing evidence that Ripple's ultimate objective is inseparable from the value of XRP itself.