Questioning XRP's practicality — the contradiction between bank adoption and demand gap

Despite the expansion of Ripple’s payment functions, doubts about the fundamental value of XRP continue to persist in the market. According to the latest data, the circulating market cap of XRP has reached approximately $12.504 billion, but there is increasing criticism that this scale is not accompanied by substantial DeFi activity.

Discrepancy Between Bank Adoption and Market Demand

Ripple’s blockchain payment technology has attracted attention from financial institutions, and many banks are considering adopting this technology. However, among analysts, there is a shared concern that “adoption of Ripple’s system by banks does not necessarily lead to increased demand for the XRP token itself.”

The strengthening of the technological infrastructure and the currency’s market value are separate issues, and the fact that the development of payment infrastructure does not directly translate into token demand is considered a major reason for the market’s subdued evaluation.

Limited Use Cases Restrict Functionality

Currently, XRP’s use cases are mainly limited to microtransactions. With such a narrow scope of functionality, the demand base relative to its market capitalization remains insufficient, raising concerns about the token’s long-term market position.

As long as the dependency on liquidity remains high and value formation continues without fundamental practicality, there is a possibility that market evaluations will not change. The challenges XRP faces are increasingly recognized as structural issues that cannot be solved by technological progress alone.