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A well-known market commentator has suggested that the XRP price would need to rise to reduce the amount necessary per transaction when utility arrives.
Notably, XRP has struggled during the broader market downturn, moving lower alongside most digital assets. However, Rob Cunningham, who hosts the KWUL Show, believes XRP’s long-term price direction will not depend on speculation. Instead, he believes real-world use will ultimately determine where the asset trades.
XRP Price to be Determined by Utility
Cunningham explained that markets focus on future utility, not outdated stories. To him, if XRP continues shifting away from speculation and into a major role as a liquidity tool for the financial system, price discovery will change. Institutions will stop reacting to retail sentiment and begin valuing XRP based on balance-sheet needs.
He further noted that markets typically price assets several months in advance. As a result, the main issue is not short-term price swings but whether XRP’s structure forces large institutions to hold it rather than trade it.
Importantly, if institutions must keep XRP on hand to operate efficiently, long-term demand would increase and could push prices higher in a lasting way.
Regulatory Clarity, DTCC Recognition, and RLUSD
Cunningham then highlighted multiple developments that could lead to XRP realizing its much-needed utility. He first called attention to regulatory clarity. Specifically, once regulators clearly define XRP’s legal status and Ripple fully secures a U.S. bank charter, uncertainty would fade. Institutions could then gain the legal confidence to hold XRP.
Specifically, treasury departments could place it on their books without penalties, and compliance teams no longer block exposure. This change moves XRP from a restricted asset into approved financial infrastructure, potentially bringing in capital that previously stayed on the sidelines.
Secondly, he then highlighted the importance of possible recognition by the Depository Trust & Clearing Corporation. Notably, if XRP qualifies as approved collateral within DTCC systems, this could be massive. Institutions would hold XRP to reduce collateral costs, speed up settlements, and lower counterparty risk.
Assets used as collateral do not behave like speculative trades. Instead, institutions stockpile them, much like government bonds or gold, which further limits available supply.
Cunningham also stressed the role of Ripple’s stablecoin, RLUSD. If XRP becomes the required liquidity bridge for RLUSD transactions, every transfer creates direct demand for XRP. With this, XRP would act as the neutral settlement layer, absorbing volatility and connecting different regions.
Cunningham argued that stablecoins do not remove the need for bridge assets. According to him, global finance still requires a neutral medium, just as oil markets rely on the dollar and foreign exchange relies on shared liquidity.
Yen Carry Trade Unwind, Policy Changes, and XRP ETFs
For the third factor, he pointed to the yen carry trade unwind. Cunningham noted that if the yen carry trade unwinds, capital will likely exit low-yield currencies and move toward assets that offer speed, reliability, and strong collateral features.
XRP meets these needs by operating without a sovereign issuer, settling instantly, and avoiding traditional banking friction. Cunningham sees this as a global liquidity movement rather than a crypto-specific event.
Moreover, he suggested that policy changes could act as the fourth factor. Specifically, tariff revenues would provide governments with income that does not rely on debt, while new leadership at the Federal Reserve could reset monetary priorities.
In such conditions, markets reward assets that improve settlement efficiency and collateral movement. XRP fits that profile better than highly leveraged speculative assets.
Cunningham also discussed the impact of a potential BlackRock XRP ETF if it ever emerges. Notably, the existing XRP ETFs recently crossed $1 billion in net inflows. According to Cunningham, the funds create automatic buying and steady demand that ignores short-term price movements, as ETFs focus on allocation and custody, not market sentiment.
XRP Price Would Need to Rise
He then pointed to XRP’s supply situation. For context, XRP has a fixed supply, and its escrow releases follow a known and transparent schedule. Unlike retail traders, institutions do not rotate supply frequently. They lock assets away for operational use.
Even limited adoption across global settlements, tokenized real-world assets, or interbank liquidity could quickly reduce available XRP. This led to Cunningham’s main point about how all this utility could impact XRP price.
According to him, as XRP handles more transaction volume, its price must rise. A higher price reduces the amount of XRP required per transaction, allowing the system to function efficiently. Interestingly, the Ripple CTO, David Schwartz, made a similar statement in 2017.
Notably, if the price fails to adjust upward, transactions would require larger quantities of XRP, which would strain liquidity. According to Cunningham, this outcome comes from simple math, not speculation.
He then presented how all this could progress. First, legal clarity and institutional positioning trigger a market revaluation. Next, real utility locks in demand through collateral use, treasury holdings, and ETFs. Over time, price discovery reflects transaction volume, locked supply, and global liquidity needs.
The market commentator noted that at this stage, XRP would no longer trade like a typical cryptocurrency. Instead, it would function like financial infrastructure.