The conversation around XRP usually focuses on price. This time it focused on infrastructure.
Key Takeaways
1. XRP’s role is structural, not speculative
The discussion highlights something most traders ignore. XRP’s importance on XRPL is not based on hype or community belief. It is built into how the ledger works. Every transaction requires it. Liquidity routing often runs through it. That means its relevance is tied to network activity, not social sentiment. If XRPL usage grows, XRP demand can grow with it. If usage does not grow, price narratives alone will not sustain it.
2. Institutional DeFi changes the type of demand, not just the size of it
If permissioned DEX infrastructure attracts regulated institutions, the demand for XRP would not look like retail speculation. It would come from liquidity providers and market makers who need XRP to facilitate FX swaps and tokenized asset trades. That kind of demand is slower, more mechanical, and less emotional. It does not create sudden spikes, but it can create durable base demand over time.
3. Infrastructure cycles move before price cycles
Developer activity across RWA and infrastructure projects suggests that builders are positioning for long term tokenization growth. Historically, in crypto, development phases often precede capital inflows. If real world asset issuance and on chain FX continue expanding, structural usage may eventually influence valuation. But that only happens if measurable transaction volume follows the narrative.
Taken together, the story is not about short term price movement. It is about whether infrastructure adoption translates into sustained on chain activity. That is the variable that ultimately decides whether XRP’s built in utility becomes economically meaningful
In a recent podcast, XRP Ledger validator known as Vet argued that XRP’s real strength is often overlooked. According to him, XRP is not just another token running on a blockchain. It is the core settlement asset built into the XRP Ledger itself.
At a time when institutional decentralized finance is slowly moving on chain, that distinction matters.
A Ledger Built for More Than One Asset
Unlike Bitcoin, which was designed primarily as a single asset network, the XRP Ledger launched with multi asset functionality from day one. It included a native decentralized exchange, support for issued tokens, and the ability to handle multiple currencies directly on chain.
This was not an upgrade added later. It was part of the original design.
Users can create stablecoins, tokenize assets, and trade them directly on the ledger without relying on external smart contracts. That design positions XRPL as a financial infrastructure layer rather than just a payment network.
At the center of that infrastructure is XRP.
XRP as the Neutral Settlement Asset
Vet emphasized that XRP is the only native asset on the ledger. It does not require a trust line. It does not depend on an issuer. Every transaction on XRPL requires XRP, and fees are paid in XRP and permanently burned.
Beyond fees, its more important function is liquidity.
One key feature discussed was autobridging. When direct liquidity between two assets is limited, the ledger can automatically route trades through XRP. For example, a euro stablecoin can trade into XRP and then into a dollar stablecoin if that path provides better pricing.
This mechanism improves liquidity and price discovery without additional layers or external contracts. It works within both the public decentralized exchange and the newer permissioned version.
In simple terms, XRP sits in the middle of many trades, even when users are not directly thinking about it.
Institutional DeFi and the Permissioned DEX
Recent upgrades to the XRP Ledger introduced permissioned domains, credentials, and a permissioned decentralized exchange. These changes are designed to make the network more suitable for regulated financial institutions.
At the same time, fiat backed stablecoins such as Ripple USD and euro denominated tokens are live on the network. As more traditional assets move on chain, foreign exchange activity could increase.
If that happens, liquidity providers would need to hold XRP to facilitate trades efficiently. That creates potential structural demand tied to network usage rather than speculation.
This is different from price driven narratives. It is about whether institutions use the infrastructure.
Development Activity Signals Ongoing Focus
Data from Santiment shows continued developer activity across real world asset and infrastructure focused projects over the past 30 days. Hedera ranked first, followed by Chainlink and Avalanche. Stellar and IOTA also showed steady activity, alongside projects such as VeChain, Creditcoin, Injective and others.
The broader pattern suggests that infrastructure and tokenization projects continue building despite market volatility.
Developers tend to move based on long term direction, not short term price swings.
A Structural Argument, Not a Price Call
The discussion around XRP was not a prediction about tomorrow’s price. It was an argument about structure.
If institutional trading, stablecoin issuance, and on chain foreign exchange continue to grow, XRP’s role as the ledger’s native settlement asset becomes more relevant. That relevance depends on measurable usage, not headlines.
The crypto market may still feel uncertain. But underneath the surface, infrastructure conversations are becoming more concrete.
For now, the focus is shifting from speculation to function. And that shift may matter more over time than a single week of price movement.
