A recently highlighted excerpt from an official Ripple document has sparked discussion around the company's long-term strategy for XRP. According to crypto analyst SMQKE, the document states that increasing demand will directly influence XRP's price.
Dependency of XRP Price on Demand
The excerpt from Ripple’s publication ‘XRP Demand Examined’ confirms that future price growth for XRP is directly tied to increased adoption of the Ripple protocol. The company openly states that its business is based on the premise that demand for XRP will rise as its payment technologies become more popular.
Role of XRP in Network Security
Ripple outlines two specific functions supporting XRP’s utility. The first is its role in securing the network. To prevent spam and denial-of-service attacks, Ripple imposes small XRP-based transaction fees, which are destroyed after use. There is also a minimum reserve of 20 XRP that must be maintained per account to ensure network efficiency and stability.
Using XRP as a Bridge Currency
The second role is using XRP as a bridge currency. It serves as a connection between various fiat currencies, facilitating faster and cheaper cross-border transactions. This feature is essential to Ripple’s goal of encouraging global institutions to adopt its protocol.
The details disclosed in the document highlight Ripple's expectation that XRP’s price growth will follow demand. The document's direct language affirms that utility and protocol adoption are central to increasing the token's value over time.
