Ripple's XRP Utility Narrative Slammed by Researcher

$XRP, the core native cryptocurrency of Ripple-linked $XRP Ledger (XRPL) blockchain, will not necessarily benefit from Ripple acquiring major broker Hidden Road. The $XRP cryptocurrency is not integrated in Ripple's liquidity logistics that deeply, the seasoned researcher says.

$XRP to $9 post Ripple's record-breaking deal? Analyst says no

As Ripple acquires Hidden Road broker, $XRP is set to witness "zero" price effects from the potential usage for "on-demand liquidity" transfers and Ripple USD ($RLUSD) stablecoin bridges. The $XRP Army should not wait for substantial profits for the asset post-deal, anonymous community expert @DarkhorseDNME4 shared with his 10,200 followers on X.

The researcher shared calculations to debunk the narrative about imminent buying pressure on $XRP that can allegedly occur from its usage in Ripple's internal processes.

First, Ripple’s ODL model zeroes out transactions on both ends. Simply put, it is a zero-sum game for $XRP supply as Ripple should always inject the same amount of liquidity as it has previously withdrawn.

For stablecoin-based bridges, $XRP should not be used at all. At best, if Ripple relies on the XRPL-based version of $RLUSD (instead of Ethereum's one), it takes "spam fees" and $XRP for gas.

At the same time, $XRP might benefit from higher burn rates, stronger market perception triggered by massive hype and Ripple's $XRP unlock finalized. All these factors combined are unlikely to cause a proper rally though.

$XRP price jumps by 24% in five days: Two reasons

The anonymous expert bashed the model that spotlighted $XRP prospects that emerged after Hidden Road broker was acquired by Ripple.

As per this model, if 20% of trading volume in the new ecosystem is associated with $XRP, the price will jump by 384%. In this uber-bullish model, $XRP is set to hit $8.9 soon. Even the most conservative version of this model suggests $XRP is ready for a 50% price spike.

Despite the general fear on the crypto market, the $XRP Army is optimistic about the asset right now. First, Ripple's deal with Hidden Road appeared to be the largest in crypto history.

Then, Ripple is closer than ever to the resolution of its five-year long legal battle with the U.S. SEC. Both factors contributed to the upsurge in $XRP's price.

$XRP is changing hands at $2.06, being 3% up in the last 24 hours.