Ripple's Stablecoin Surge Sparks Concerns for XRP

Ripple's recent success has raised questions about the future of its native token XRP. The company's stablecoin, RLUSD, has been a major contributor to its growth, but some analysts are worried that it may be undermining the value of XRP.

Dana Love, a crypto analyst with a strong economics background, made this claim in a recent video breakdown. He argued that Ripple's record-breaking 2024-2025 run was driven by stablecoin economics and enterprise plumbing, not by rising demand for XRP itself.

Love pointed out that RLUSD has grown to become one of the top 10 stablecoins, with a market cap of over $1.6 billion. However, most of this activity is taking place on Ethereum, rather than the XRP Ledger, which is where XRP holders would expect to see the majority of its use.

The analyst noted that while XRP does have some role in Ripple's infrastructure, it is largely being used as a bridge asset and not as the primary settlement asset. This has led him to conclude that XRP's on-chain utility may be decreasing, rather than increasing.