XRP Remains Core to XRPL’s Liquidity Amid Tokenized Asset Surge
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XRP: The Quote Currency of XRPL
Crypto enthusiast and FX liquidity provider Andrew De’Vilbiss emphasized XRP’s critical function, stating, “XRP is the quote currency of the XRP Ledger. This is made possible by the auto-bridge feature.” This mechanism ensures XRP is prioritized for liquidity in transaction routing.
De’Vilbiss further noted, “Each transaction costs XRP for gas,” which means that as network activity rises, so does the demand for XRP—driven by transaction fees and liquidity pool utility.
Auto-Bridge Mechanism Enhances Liquidity
The auto-bridge feature allows XRP to act as a central intermediary asset, connecting various tokens on XRPL. This enhances liquidity efficiency and keeps XRP central in value transfer processes.
Ripple CTO David Schwartz supported this, stating that XRP plays a critical role in bridging assets across the ledger. “The XRP Ledger has features like auto-bridging that kind of put XRP in a central role,” he added.
Stablecoins & DeFi: Expanding Use Cases
While XRPL welcomes stablecoins and real-world asset tokenization, Schwartz clarified, “It’s not a pivot away from XRP,” reinforcing XRP’s importance as the native and gas token.
He also highlighted how high-quality stablecoins could enhance DeFi applications, but XRP’s role remains irreplaceable in liquidity provision and fee payments.
Conclusion: Long-Term Demand for XRP
With growing transaction volumes and asset diversity on XRPL, both De’Vilbiss and Schwartz agree: XRP’s utility and demand will only rise, cementing its long-term value in the evolving crypto economy.