XRP is attracting renewed interest in the cryptocurrency community after an analyst raised a key question about the driving force behind demand for the asset in the global settlement system. The discussion focuses on how XRP would work if the XRP Ledger (XRPL) existed Widely adopted for payments, And whether the value of a cryptocurrency comes from usage, liquidity channeling, or the deeper institutional structures built around it.
Related reading
The analyst wonders where the demand for XRP is coming from in the XRPL economy
Cryptocurrency Analyst Iso Ledger to publish A compelling question in X’s post dated May 7, 2026, sparked discussions across the cryptocurrency community. The analyst argued that if the whole world used the XRP Ledger and Settlement is made using the stablecoin RLUSDXRP will primarily function as a gas token. If so, he wonders what actually creates real, sustainable demand for XRP within this system.
The answer lies in “bridges,” Ezzo-Ledger explained. In his view, demand for XRP will increase when It is used as a bridge for liquidity Between two currencies or assets that do not have direct trading pairs. He used the example of a Japanese pension fund paying a Brazilian supplier, with XRP channeling value between OUSG and the BRL stablecoin when there is no direct liquidity.
In this structure, XRP is not just a fee mechanism but Neutral bridge origin Which enables settlement between separate markets. According to Iso Ledger, this is where demand is generated through transaction flow rather than simple usage.
However, it also raised the more complex issue of what happens when liquidity becomes too deep across all assets on XRPL. If there are direct pairs between most major currencies and stablecoins, XRP may not be needed for routing. In this case, it could be marginalized in favor of direct settlement paths.
Iso Ledger suggested that this creates tension in the long-term value model of cryptocurrency. According to him, XRP will either become expensive Enough to remain practical for a large institutional settlement or remain at a low price around $2 and collect fractions of a penny as demand declines forever.
XLS-66D is seen as a solution to XRP’s demand and supply problem
He pointed to the next one XLS-66Da proposed lending protocol for XRPL, as a potential solution that could lead to a lock in XRP supply. by Reduce circulating supplyThe price of XRP may rise, which in turn could strengthen its role as a settlement asset and support further adoption in a feedback loop. He believes this episode could eventually lead to sustained demand and higher prices in the long term.
Related reading
He concluded his discussion by asking a key question. Iso Ledger questioned why institutions would build a $550,000 security audit or lending protocol around a “gas token.” He wondered why companies were created XRP ETFs Or why does Goldman Sachs do this? Invested $152 million in XRP If only it was a simple gas code. According to him, the market is underestimating XRP’s evolving role in global settlement systems. He said that its price did not keep pace with the bullish developments surrounding it.
Featured image from Unsplash, chart from TradingView
