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$XRP long-standing investment narrative has centered on its real-world utility, particularly in payments, liquidity, and cross-border finance.
However, questions remain about how much of the value created by the $XRP Ledger actually benefits $XRP holders.
On X, Erin Lane raised this issue, referring to comments from Altcoin Daily founder Aaron Arnold on the Milk Road podcast with John Gillen.
Lane’s point is that $XRP’s problem may not be a lack of real-world use. Instead, the bigger issue is that there is no clear link between the growth and revenue of the $XRP Ledger and demand for the $XRP token itself.
Value-Capture Question
Lane pointed to a model that has helped drive interest in Hyperliquid:
Usage → Revenue → Buybacks → Token Demand
Arnold said Hyperliquid uses much of its revenue to buy back HYPE, its native token. This creates a more direct link between the success of the network and the value of its token.
Arnold said this differs from $XRP and Solana, adding that he would like to see more networks adopt a similar approach.
Indeed, the $XRP Ledger is seeing growing activity, but the key question is whether that growth will also increase demand for and create value for $XRP.
“My views on Ripple and $XRP: I’m insanely bullish on the company, but the coin just hasn’t really done anything since 2017 or before,” Altcoin Daily founder said.
Arnold Compares $XRP With Ripple
Arnold also distinguished Ripple from $XRP. He said he has long been very positive on Ripple as a company but has questioned whether $XRP can capture the value created by the broader ecosystem.
Arnold made a similar point about Chainlink and Ethereum. He suggests that networks can focus on adoption first and add mechanisms that allow the token to benefit later.
“Get the adoption first and then turn on what makes you money,” Arnold said.
This could become more important as the $XRP Ledger expands beyond payments into stablecoins, tokenized assets, DeFi, and institutional use.
$XRP as a Global Liquidity Tool?
Lane also raised the possibility that $XRP could become more than just a crypto asset and play a role in the global financial system. This aligns with the idea of using $XRP to move money between markets and financial institutions.
If the $XRP Ledger gains widespread adoption, the bigger question is whether $XRP itself will benefit from that growth.
Ultimately, these comments seek to emphasize that a growing network does not always mean a more valuable token. $XRP could see more transactions, institutional use, and liquidity without creating strong demand for $XRP itself.
Meanwhile, Lane also pointed to discussions surrounding $XRP’s classification as a digital commodity in the U.S. However, regulatory recognition alone does not guarantee that $XRP holders will benefit financially.