XRP's Value Capture Conundrum: Is Utility Enough?

The success of XRP has long been tied to its real-world utility, particularly in payments, liquidity, and cross-border finance. However, a closer look at the XRP Ledger reveals that there may be a disconnect between its growth and revenue and demand for the XRP token itself.

According to Altcoin Daily founder Aaron Arnold, who was quoted on the Milk Road podcast with John Gillen, the problem lies not in utility but in value capture. He pointed out that Hyperliquid uses much of its revenue to buy back HYPE, creating a direct link between network success and token demand.

Arnold distinguished Ripple from XRP, stating that he is 'insanely bullish' on the company but has questioned whether XRP can capture the value created by the broader ecosystem. He suggested that networks should focus on adoption first and then add mechanisms to allow the token to benefit later.