XRP settles payments in seconds and gets reused immediately, meaning payment volume does almost nothing to drive the coin's price up.
Spot XRP ETFs hold 772 million coins and exchange supply is at a seven-year low, meaning supply removal is the real price driver rather than usage.
Evernorth holds 473 million XRP and the proposed XLS-66 lending protocol would give holders their first built-in yield, creating new reasons to hold.
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XRP (CRYPTO:XRP) is designed to move money quickly, settling a paymemt in three to five seconds, not to be held onto during a payment. When a bank sends money across borders through Ripple's system, it buys XRP, uses it to carry the value for a few seconds, and sells it on the other side. Nobody in that transfer keeps the coin, because holding it even briefly would expose the bank to its price swings.
That speed is XRP's biggest selling point, but it raises an uncomfortable question. If the coin only needs to be held for a few seconds to do its job, what makes anyone want to hold it for longer, and why would the price go up? It's the strongest argument against XRP there is, and if you own it, you deserve a straight answer. So here's how XRP works inside a payment, what sets its price today, and what Ripple is building to change that.
There's a process to follow whenever anyone uses Ripple's rails to make cross-border payments. A bank sending money from the U.S. to Mexico buys XRP at the moment of the transfer, uses it to carry the value across in a few seconds, and sells it for pesos on the other side.
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The recipient gets their money and never touches XRP, or even knows crypto was involved in the transfer at all. Nobody in that chain holds the coin, and that is the selling point, because a few seconds of exposure keeps XRP's price swings off everyone's books.
Because each coin is free again seconds after it is used, the same XRP can settle one payment after another. That means the pool of coins actively moving money at any moment is far smaller than the total value flowing through the system. XRP can be busy without many people needing to hold it.
The XRP Ledger (XRPL) is showing exactly that right now. This month, XRPL crossed one million payments made by AI agents—software that pays for services in XRP on its own. Over the same period, new wallet creation fell to its lowest since November 2024, and the XRP price stayed near its lowest point of the year, down about 68% from a year ago.
Source: Yahoo Finance Top News — This article was automatically imported from the source. Read full article at original source →
