XRP Ledger Expert Debunks Major Misconception About XRP’s Role in Network Growth

In Brief:

XRP Ledger validator Vet has challenged claims that expanding XRPL adoption offers little benefit to XRP, the network’s native cryptocurrency. According to Vet, such arguments overlook XRP’s established functions across payments, decentralized trading, and asset transfers.

The remarks address complaints that tokenization projects increasingly use XRPL without producing corresponding gains in XRP’s market price. Some community members also question whether institutions adopting the blockchain need its native asset. Vet explained that XRPL has supported multiple assets since 2012, while XRP retains functions that issued tokens cannot replicate.

Also Read: Chainlink Partners With LG CNS to Expand South Korea’s $68 Billion Crypto Market

Vet Explains Why XRP Remains Essential to XRPL Operations

According to Vet, XRP plays a role in auto-bridging, which connects trading pairs through the ledger’s decentralized exchange. This feature allows traders to route exchanges between different assets through XRP when suitable liquidity exists.

The validator also highlighted XRP’s use for transaction fees and account reserves across the network. These requirements distinguish the cryptocurrency from tokens issued by companies or other entities using XRPL.

Significantly, XRP has no issuer responsible for honoring a claim against the asset. Vet emphasized that issuers cannot freeze native XRP, unlike certain tokens carrying issuer-controlled restrictions.

Ripple and Arf Partnership Expands XRPL Settlement Liquidity

Meanwhile, Ripple and Swiss financial institution Arf announced a partnership yesterday to introduce RLUSD-powered settlement liquidity to the XRP Ledger. The agreement brings Arf’s settlement financing services to XRPL, supporting licensed payment companies handling international transfers.

Through the collaboration, Arf will use Ripple’s RLUSD stablecoin to provide short-term working capital for cross-border payment transactions. Arf currently processes approximately $10 billion in annual settlement volumes, connecting its payment operations with Ripple’s blockchain infrastructure.

XRP Price Growth May Follow Broader Network Adoption

The validator also addressed expectations that each new XRPL integration should trigger an immediate XRP price increase. Vet argued that broader network acceptance could eventually support demand for XRP rather than produce instant market appreciation.

“A valuable network is a good place to house money,” Vet stated.

The remarks distinguish XRP’s established network functions from expectations surrounding its market performance as institutional adoption expands.

Also Read: Coinbase Ireland Hit With €3.25 Million Fine Over Customer Fund Safeguarding Failures

The post XRP Ledger Expert Debunks Major Misconception About XRP’s Role in Network Growth appeared first on 36Crypto.