XRP is attracting renewed attention in the crypto community after an analyst asked a key question about what is driving demand for the asset in a global clearing system. The discussion focuses on how XRP would function if the XRP Ledger (XRPL) were generally accepted for payments, and whether the cryptocurrency’s value comes from its usage, liquidity routing, or the deeper institutional structures built around it.
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Analysts question the source of demand for XRP in an XRPL economy
Crypto analyst Iso Ledger posted a fascinating question in an X-post on May 7, 2026, which sparked debates in the crypto community. The analyst argued that if the entire world used the XRP Ledger and settled with the RLUSD stablecoinXRP would function primarily as a gas token. If this is the case, he wonders what actually creates real and sustainable demand for XRP within that system.
Iso Ledger explained that the answer lies in ‘bridging’. According to him, XRP wins the question of when it is 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 route value between OUSG and a BRL stablecoin in the absence of direct liquidity.
In this structure, XRP is not just a fee mechanism, but a neutral bridge asset that allows settlement between disconnected markets. According to Iso Ledger, demand is created here through transaction flows rather than simple usage.
However, he also raised a more complicated question about what happens if liquidity becomes too great for all assets on XRPL. If direct pairs exist 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 resolution processes.
Iso Ledger suggested that this creates a tension in the cryptocurrency’s long-term value model. According to him, XRP either has to become expensive enough to remain practical for large institutional settlements or to remain priced low around $2 and forever collect fractions of a cent at low demand.
XLS-66D seen as a solution to the XRP supply and demand problem
He pointed to the next one XLS-66Da proposed lending protocol for XRPL, as a possible solution that could block the XRP supply. By means of reducing the circulating supplyThe price of XRP could rise, which could in turn strengthen its role as a settlement asset and support more adoption in a feedback loop. He believes this cycle could ultimately lead to continued demand and price growth in the long term.
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He concluded his debate by asking an important question. Iso Ledger wondered why institutions would build a $550,000 lending protocol or security audit around a “gas token.” He wondered why companies would create XRP ETFs or why Goldman Sachs would do that Invest $152 million in XRP if only it were a simple gas token. According to him, the market underestimates the evolving role of XRP in global settlement systems. He said the price simply hasn’t caught up with the bullish developments surrounding it.
Featured image from Unsplash, chart from TradingView