XRP (CRYPTO: XRP) analysts are debating whether real-world utility can translate into sustained price appreciation, considering the token is down over 30% in one year despite increased adoption.

Traders Split Over “Utility vs. Price” Relationship

Some traders argue that XRP's value proposition depends entirely on adoption within global payments infrastructure.

Trader BarriC, said that long-term XRP holders remain confident because no Ripple executive has ruled out significant upside potential.

He argued that XRP's long-term price would depend on whether it becomes embedded in global financial systems, rather than retail speculation.

Other market participants remain skeptical.

They argue that XRP's role as a bridge currency does not necessarily generate sustained demand.

Since tokens are typically bought and sold quickly during cross-border transactions, they say this usage may not create lasting upward press.

Ripple’s Technical Response

David Schwartz, Ripple's Chief Technology Officer Emeritus, pushed back on the skepticism, arguing that utility-driven demand is more nuanced.

He said XRP's use as a bridge asset can still create structural demand in several ways:

  • Businesses may hold XRP to reduce conversion costs across multiple transactions
  • Firms operating in multiple currencies can reuse XRP instead of repeatedly converting between fiat pairs
  • Liquidity providers may hold XRP to facilitate transactions and earn spreads

According to this view, utility does not rely solely on transaction speed, but also on capital efficiency and liquidity provisioning.

On the institutional side, EvernorthXRP reported that XRP spot ETFs recorded roughly $80 million in net inflows in April 2026, marking the strongest month of the year so far. Flows were also notably more consistent than earlier periods.

Instead of short bursts of activity, April saw steadier daily inflows, which some analysts interpret as gradual accumulation rather than speculative spikes.

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