XRP Ledger and Token Utility: A Renewed Discussion
In the ever-evolving world of cryptocurrencies, a prominent figure from VanEck has once again stirred the debate surrounding the practical utility of XRP and its underlying ledger. This comes at a time when a new spot ETF has achieved record-breaking launch numbers for the year.
Evaluating XRP’s Real-World Applicability
Matthew Sigel, who leads digital assets research at VanEck, recently reignited discussions on social media by challenging the fervor of XRP supporters. In a post filled with both irony and skepticism, he addressed the community: “Dear XRP proponents, I might never fully grasp your ‘blockchain’s’ functionality, but I admire your dedication to its cause. Keep pushing forward!”
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Dissecting XRP’s Developer and Economic Viability
Sigel’s comments opened the floor to a series of probing questions about the XRP Ledger’s developer engagement and the economic rationale for holding XRP. He openly questioned, “Has any developer ever seriously considered building on XRP? I would love to see examples.” Hours later, he pointed out the absence of substantial responses, stating, “Still no replies.” This challenge highlights the importance of developer engagement and on-chain activity as indicators of a network’s value.
When a supporter cited Ondo Finance’s launch of its OUSG tokenized Treasury fund on the XRP Ledger as evidence of the ecosystem’s activity, Sigel shifted focus to the token’s economic model. He questioned, “Does any of this initiative translate into value for XRP token holders? I’m not aware of any fee capture or revenue sharing that benefits them. Perhaps I’m missing something, but I’m open to learning and updating my views.”
Controversies and Comparisons
The conversation also touched on the wealth generated around XRP and the controversies it has sparked. Responding to a user’s sarcastic remark about XRP funding Ripple and resulting in several billionaires, Sigel commented, “Like the individual who supported Greenpeace’s campaign to change Bitcoin’s proof-of-work system? Quite a legacy.”
When criticized for allegedly discouraging investment in XRP, Sigel contrasted its adoption with Bitcoin’s growing institutional presence. He noted that major entities like University Endowments, Sovereign Wealth Funds, and even a Central Bank have embraced Bitcoin. He added, “A dozen countries now mine Bitcoin with government backing, leveraging its synergy with the power grid. Nevertheless, feel free to invest in XRP; I’m not stopping you.”
Market Dynamics and ETF Launches
The discussion unfolded against a dynamic market backdrop. Canary Capital’s spot ETF, XRPC, launched on November 13, achieving a first-day volume of approximately $58 million, with $26 million traded in the first hour alone. This performance marked the largest ETF debut of 2025, narrowly surpassing the inaugural volume of Bitwise’s Solana ETF, BSOL. These funds now set the benchmark for single-asset ETF launches this year, with subsequent entrants trailing significantly in day-one trading volumes.
At the latest update, XRP was trading at $2.27.
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