Ripple's Growth Not Translating into Increased Demand for XRP

Ripple's growth is not translating into increased demand for its native token XRP. According to Altcoin Daily founder Aaron Arnold, this is because the value generated on the XRP Ledger does not necessarily return to XRP holders as tangible benefits.

Arnold pointed out that other networks like Hyperliquid have a structure in place where increased network usage leads to revenue used to buy back tokens, boosting demand. In contrast, Ripple and XRP should be assessed separately, with Arnold expressing optimism about the company but saying XRP has had 'virtually no notable achievements' since 2017.

This could become more important as the XRP Ledger expands into new areas such as stablecoins, tokenised assets, decentralised finance (DeFi), and institutional finance. Even if network transaction volume, institutional participation, and liquidity increase, that does not immediately lead to demand for XRP. The market is shifting its attention from adoption of the XRP Ledger itself to what economic effect that growth brings to the XRP token.

Arnold's view also applies to other blockchains like Chainlink and Ethereum, which can first secure users and then add a structure allowing the token to benefit from ecosystem growth. The regulatory status of XRP in the United States is also a factor, but even if it is classified as a digital commodity, this does not guarantee economic gains for XRP holders.

Ultimately, whether a structure will be put in place that links growth of the XRP Ledger to token demand is key. Increasing transaction volume and institutional use alone is not enough, and network expansion must lead to real demand for XRP and rising value.