What’s Driving XRP’s Value in 2025—Hype or Utility?

XRP, the fourth-largest cryptocurrency by market cap, is at the center of debate as industry experts question its core utility in today’s market

This new discussion highlights a key issue in the crypto space: What justifies the persistent investor fixation on XRP, separate from its corporate parent, Ripple?

Has XRP Lost Its Utility? What Crypto Analysts Are Saying

XRP has experienced one of the most turbulent journeys in the crypto space. From facing intense regulatory scrutiny to eventually overcoming major legal hurdles. Its proponents have long hailed XRP for its transformative potential in global finance.

However, in 2025, many believe XRP’s purpose and utility are shrinking. In a recent post on X (formerly Twitter), Scott Melker, Host of The Wolf Of All Streets Podcast, posed the question,

“I say this with no disrespect, looking for an actual answer. What is the current pitch for XRP? The token, not Ripple the company.”

He noted that major financial players have opted for other networks, with Western Union choosing Solana for its stablecoin initiative and SWIFT going with Linea. These moves, he said, challenge XRP’s long-promoted narrative as the bridge for global payments.

“Stablecoins have clearly taken the reigns for payments, so I get their stablecoin being in play. But what utility does XRP have?” Melker asked.

The post exposed a divide between the community. Critics asserted that XRP’s utility is illusory, with its main function being to raise capital for Ripple.

DBCrypto argued that banks have shown little interest in XRP, and it only serves to fund business operations and software development.

“XRP has no utility except to be sold to pay for their business operations and funding their software, that has nothing to do with the token. Banks have already said they have no interest in it. Oh, and WU ‘chose’ Solana after a $50m incentive package. For $50m I’m sure dozens of chains could have landed that short term ‘partnership,'” the analyst wrote.

Others accused XRP of being more of a profit tool for its creators than a cryptocurrency with meaningful, real-world use. BeInCrypto reported that since 2018, Ripple co-founder Chris Larsen has realized over $764 million from XRP sales, often near local price highs. This has contributed to the concerns.

Lastly, attorney Joe Carlasare compared XRP to meme coins. He claimed that XRP’s value is driven by the token’s strong community rather than its utility.

“People buy XRP because it’s a meme. Just like ADA. Just like Doge. Just like Trump coin. It’s never been about the utility. It’s about the XRP community which is one of the strongest to this day,” Carlasare posted.

Experts Defend XRP’s Real-World Utility

In contrast, other market figures defended XRP’s practical use. Santiago Velez, Co-Founder of Onami Press and XAO DAO, outlined the original technical purpose of XRP.

“One of the purposes of the XRP native asset, to the XRPL Layer 1, is to have value for spam prevention (it’s not gas by it can disincentivize DDOS attacks),” the entrepreneur said.

Velez also emphasized that XRP was designed to act as a neutral bridge currency with no central issuer or counterparty risk. This makes it essential to the ledger’s operation and one of the few Layer 1 assets built this way, alongside Stellar (XLM).

Another analyst shared this view. He stressed that XRP remains a neutral asset purpose-built for payments. The analyst said that Ripple uses the XRP Ledger to target cross-border B2B and B2C transactions, not just remittances. He also highlighted that institutional DeFi could further impact XRP’s supply and demand.

“XRP… is the only neutral asset on the XRP Ledger that will ever be counterparty-risk-free. If we combine this with the use case for XRPL, which is peer-2-peer payments, then XRP becomes the most useful and unique asset on this blockchain purposefully built for cross-currency (asset) payments,” Krippenreiter remarked.

Previously, Teucrium CEO Sal Gilbertie, whose firm launched a 2x leveraged XRP ETF, reinforced this perspective, claiming that XRP’s utility remains undeniable.

“It’s a coin that will have the most utility. XRP has a true use case there is just no doubt about it,” Gilbertie commented.

Meanwhile, a market observer noted that Ripple has reiterated three times that XRP remains at the core of its operations. This divide reveals that XRP remains one of crypto’s most polarizing assets in 2025— caught between claims of fading relevance and defenders who still see real-world purpose in its design.