Ripple’s XRP continues to be a talking point within crypto circles, as analysts on X (formerly Twitter) question its relevance and core utility in the current financial landscape. While Ripple Labs navigate the evolving regulatory environment and expand their enterprise solutions, the fundamental purpose and value proposition of the XRP token itself are under scrutiny. Is XRP simply a means for Ripple to raise capital, or does it possess genuine utility in the rapidly changing world of digital finance?

The Shifting Sands of XRP Utility

The Critics’ Corner

Concerns about XRP’s usefulness aren’t new, but they’ve intensified as other blockchain solutions gain traction. Scott Melker, host of The Wolf Of All Streets Podcast, ignited a fresh round of debate when he openly questioned XRP’s current pitch, specifically focusing on the token’s utility independent of Ripple the company. He highlighted the decisions of major financial players like Western Union and SWIFT, who have opted for Solana and Linea, respectively, for their stablecoin and on-chain messaging initiatives.

• Stablecoin Competition: Melker points out that stablecoins have largely taken over the payments sector.
• Lack of Bank Interest: DBCrypto asserts that banks have shown little interest in XRP, suggesting its primary function is to fund Ripple’s operations.
• Profit-Driven: Critics like Mike of Oz argue XRP serves more as a profit-generating tool for its creators than a cryptocurrency with practical use. The fact that Ripple co-founder Chris Larsen realised over $764 million from XRP sales since 2018 has further fuelled these claims.
• Meme Coin Comparison: Attorney Joe Carlasare controversially compared XRP to meme coins, suggesting its value is driven primarily by community sentiment rather than inherent utility.

The Defenders’ Stance

However, XRP’s defenders remain steadfast, arguing that the token retains its core value proposition. They emphasise its unique design and purpose-built functionality for specific use cases.

• Spam Prevention: Santiago Velez, Co-Founder of Onami Press and XAO DAO, argues that XRP’s primary function as native asset of the XRPL Layer 1, is to have value for spam prevention and dissuading DDOS attacks.
• Neutral Bridge Currency: Velez also highlights XRP’s intended role as a neutral bridge currency, free from central issuer control and counterparty risk.
• Cross-Border Payments: Ripple uses the XRP Ledger to target cross-border B2B and B2C transactions, not just remittances, highlighting that institutional DeFi could further impact XRP’s supply and demand.

Ripple’s Continued Commitment

Despite the criticisms, Ripple has repeatedly affirmed that XRP remains central to its operations. Market observers note that the company has reiterated this commitment on multiple occasions, signaling its continued belief in the token’s future.

XRP in 2025: Utility or Illusion?

As we move further into 2025, the debate surrounding XRP’s utility remains unresolved. The token’s price performance will likely be influenced by a complex interplay of factors, including regulatory developments, Ripple’s business partnerships, and the broader market sentiment toward cryptocurrencies. The outcome of any appeals following the previous SEC lawsuit will also be pivotal in shaping XRP’s future trajectory.

For investors, the question of XRP’s utility is paramount. While some view it as a speculative asset driven by community hype, others maintain that its unique design and potential for cross-border payments give it a legitimate role in the evolving financial ecosystem. The emergence of 2x leveraged XRP ETFs, like the one launched by Teucrium, further complicates the investment landscape, offering both opportunities and risks for those seeking to capitalise on XRP’s price movements.

Key Considerations for Investors

• Due Diligence: Investors must conduct thorough research and carefully assess the risks and potential rewards associated with XRP.
• Utility vs. Speculation: Distinguish between the token’s perceived utility and its speculative value, recognising that market sentiment can significantly impact its price.
• Regulatory Landscape: Monitor regulatory developments closely, as these can have a profound impact on XRP’s future.
• Alternative Solutions: Consider the emergence of alternative blockchain solutions, such as stablecoins and other payment networks, which may compete with XRP’s use cases.

Ultimately, the future of XRP hinges on its ability to demonstrate tangible utility and adapt to the rapidly changing landscape of digital finance. Whether it will emerge as a leading force in cross-border payments or remain a speculative asset driven by community sentiment remains to be seen. As 2025 unfolds, the crypto community will continue to watch XRP closely, seeking clarity on its true purpose and potential in the years to come.