Crypto researcher SMQKE has highlighted how increasing adoption of XRP as a bridge currency could support higher prices for the asset.
According to SMQKE, Ripple's own business model outlines how wider adoption of the XRP Ledger could strengthen demand for XRP over time.
The researcher pointed to XRP's ability to facilitate transfers between unrelated currencies and payment gateways, suggesting that this utility becomes more valuable as the network expands and processes larger payment volumes.
SMQKE explained that every bridge transaction contributes to trading activity by generating buying and selling volume, deepening liquidity across XRP trading pairs on exchanges and other platforms.
The researcher also noted that Ripple expects broader adoption of the protocol to increase demand for XRP, contributing to price appreciation as more institutions and payment providers utilize the network.