XRP is once again gaining attention from the crypto community after one analyst raised a key question about the driving force behind demand for the asset in the global settlement system. The discussion focuses on how XRP would work if the XRP Ledger (XRPL) existed widely accepted for payments, and whether the value of a cryptocurrency comes from its use, the channeling of liquidity, or the deeper institutional structures built around it.
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Analyst questions XRP’s source of demand in the XRPL economy
Iso Ledger Crypto Analyst published persuasive question in X post on May 7, 2026, which sparked debates in the crypto community. The analyst argued that if the entire world were to use the XRP Ledger and settled with RLUSD stablecoinXRP would primarily function as a gas token. If this is the case, it begs the question of what actually creates real and sustainable demand for XRP within that system.
Iso Ledger explained that the answer lies in “bridging”. In his opinion, XRP gains demand when used as a liquidity bridge between two currencies or assets that do not have direct trading pairs. He used the example of a Japanese pension fund paying a Brazilian supplier, where XRP would drive value between OUSG and the BRL stablecoin when there is no direct liquidity.
In this structure, XRP is not just a compensation mechanism, but neutral asset of the bridge which enables settlement between unrelated markets. According to Iso Ledger, here demand is created through the flow of transactions, not through simple usage.
However, it also raised the more complicated question of what happens when liquidity becomes too much in all assets on XRPL. If there are direct pairings between most major currencies and stablecoins, XRP may no longer be needed for routing. In that case, it could be set aside in favor of direct settlement routes.
Iso Ledger suggested that this creates tension in the cryptocurrency’s long-term value model. According to him, XRP must either become expensive enough to remain practical for a large institutional settlement or to stay low priced around $2 and forever collect fractions of pennies with low demand.
The XLS-66D is seen as a solution to XRP’s supply and demand problem
He pointed to the upcoming XLS-66Dproposed lending protocol on XRPL, as a potential solution that could block the supply of XRP. Per reducing the circulating supplythe price of XRP could rise, which in turn could strengthen its role as a means of settlement and support greater adoption in a feedback loop. He believes this loop could lead to continued demand and price appreciation in the long term.
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He concluded his discussion by asking a key question. Iso Ledger asked why institutions would build a lending protocol or a $550,000 security audit around a “gas token.” He wondered why companies would create XRP ETFs or why would Goldman Sachs invest $152 million in XRP if it was just a regular gas token. According to him, the market underestimates the growing role of XRP in global settlement systems. He said its price simply hasn’t caught up with the bullish movements surrounding it.
Featured image from Unsplash, chart from TradingView
