XRP Valuation Criticized Amid AI Payment Push

XRP is facing criticism over its tokenomics and valuation as Ripple pushes forward with AI payments using the XRP Ledger.

Crypto trader Moody Hank argued that XRP may still be expensive near the $1 level, citing its large supply of 100 billion tokens, with about 58 billion currently circulating and roughly 36 billion still held in escrow. He criticized the pre-mined launch structure and pointed out that Ripple's monthly escrow unlocks create a steady source of selling pressure.

'Every single month Ripple unlocks up to 1 billion XRP from escrow,' Hank said, adding that although much of it is relocked, the remaining amount can still enter the market. He also questioned whether the XRP Ledger requires the XRP token to function, arguing that institutions using Ripple's payment products can settle in local currencies.

'The token is optional infrastructure, not essential utility,' Hank said.