Ripple anticipates increasing demand will drive XRP's price increase.

crypthub

about 21 hours ago

Ripple's Utility-Based Strategy

Ripple aims to revolutionize cross-border payments and believes increased demand for XRP will drive its price. The company’s On-Demand Liquidity (ODL) product uses XRP as a bridge currency for faster, low-cost international transactions. ODL bypasses traditional pre-funded accounts, creating seamless money movement and boosting XRP demand. Ripple anticipates greater adoption of ODL will organically increase XRP’s transactional volume and, consequently, its price.

Supply and Market Dynamics

Ripple’s economic model also relies on managing XRP’s supply. The company holds a significant portion of XRP's total supply, released incrementally to prevent market flooding. Ripple’s sales and distribution rate directly impacts how effectively increased demand translates into price growth. Monitoring Ripple's reports reveals the balance between institutional liquidity usage and open market XRP sales.

Regulatory Acceptance and Institutional Confidence

A recent resolution in Ripple's legal battle with the SEC, confirming XRP’s non-security status, has spurred institutional interest. This clarity has encouraged banks and remittance firms previously hesitant due to legal uncertainties. With this acceptance, Ripple can expand its ODL partnerships and network across regions like the Middle East, Latin America, and Southeast Asia.