Ripple outgrows cryptocurrencies—but can XRP catch up?

Ripple’s recent wave of high-profile acquisitions shows its growing strength and ambition in bridging traditional finance and cryptocurrencies.

However, concerns persist that Ripple’s reliance on XRP-linked funding exposes weaknesses in the company’s long-term financial sustainability and the actual utility of its ecosystem.

Growth outpacing token utility

Ripple’s recent acquisitions, including Hidden Road and GTreasury, highlight Ripple’s efforts to accelerate its entry into traditional finance and expand its financial infrastructure into the corporate market.

However, Ripple’s growing influence in traditional finance has reignited long-standing concerns about XRP’s usefulness and relevance. These newly acquired services are primarily targeted at institutional customers who rely on traditional financial products, leaving XRP to play little or no role in their core operations.

This disconnect has drawn attention from analysts and investors, who are questioning whether Ripple’s expansion is truly supporting the token’s long-term value.

Financial dependence contradicts XRP roadmap

Despite recent acquisitions, Ripple’s financial reality still relies heavily on XRP sales and tokenomics. The company continues to hold and release large amounts of XRP.

These recurring sales, managed through an escrow system, have long served as an important source of liquidity and operating capital for the company.

However, this reliance on XRP sales stands in contrast to the company’s long-promoted vision of the token as a functional bridge currency rather than a financial asset.

For years, there has been talk that XRP would become a bridge currency, payment fuel, and utility token within XRPL and Ripple’s infrastructure. But new data introduces a structural disconnect.

An effective example is Ripple’s RLUSD stablecoin.

As of early October, RLUSD has a market capitalization of approximately $789 million. However, BeInCrypto previously reported that around 88% of RLUSD’s supply is on Ethereum rather than XRPL.

Many XRP holders expected the adoption of RLUSD to increase demand for the token. Transactions on the XRP Ledger require a small XRP fee. However, since most RLUSD activity occurs entirely outside of the ledger, the impact on the overall utility of the token is limited.

This situation has created strategic tension for Ripple, which is expanding beyond the original purpose of XRP. While once expected to benefit from this growth, tokens will only play a limited role in new operations.

So far, this change has not led to increased usage or burning of XRP, raising questions about its usefulness in the real world.

The debate over the relevance of XRP has now expanded to include how Ripple controls and influences the circulation of its tokens.

XRP buyback raises new questions

Ripple’s intervention in the XRP market has added a new layer to the debate over the token’s usefulness.

The company recently revealed plans to raise $1 billion worth of XRP to establish a digital asset vault, one of the largest fundraising efforts centered on a single cryptocurrency.

Supporters see the plan as a sign of confidence in XRP’s long-term prospects and an attempt to bring stability to the market.

But critics argue that companies raising money to buy their own tokens risk blurring the line between financial strategy and price support.

Some analysts have warned that such a large-scale intervention could reinforce the perception that Ripple’s success still relies on XRP speculation rather than genuine on-chain or institutional utility.

Ultimately, this effort highlights the same structural challenges facing the Ripple ecosystem. Although the company is rapidly expanding into traditional finance, XRP’s practical role in that growth remains limited.

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