Here’s What Could Slash Ripple’s Need to Sell XRP
Ripple's quarterly XRP sales have long been a point of contention—and a constant overhang on the token's price. But a seismic shift in the company's business model could finally cut that supply pressure at the source.
The On-Demand Liquidity Evolution
For years, Ripple's flagship On-Demand Liquency (ODL) service relied on XRP as a bridge currency. That meant the company needed a steady stream of tokens to fuel the corridors, leading to those infamous quarterly unlocks and sales from its escrow holdings. It was a necessary evil, or so the narrative went—a classic case of 'building the plane while flying it' that conveniently ignored the sell-side pressure on retail holders.
A New Financial Plumbing
The game-changer isn't some minor protocol tweak. It's a fundamental re-architecture of how value moves. Imagine financial institutions settling cross-border payments directly, using RippleNet's messaging and settlement layer, but with the final leg settled in local currency—not XRP. The token becomes an optional efficiency tool rather than the mandatory middleman.
This pivot leverages Ripple's growing network of banking partnerships and regulatory clarity in key jurisdictions. Why force-feed a volatile asset into a conservative industry's pipeline when you can sell them reliable, compliant software instead? It's the ultimate enterprise pivot: from selling the pickaxes to leasing the entire mining rig.
The Bottom Line for XRP Holders
Reduced treasury sales mean less mechanical selling hitting the market each quarter. It untethers XRP's price discovery from Ripple's operational cash needs—a decoupling that's long overdue. The cynical finance jab? It turns Ripple from the market's largest periodic seller into a pure stakeholder, aligning its success with token appreciation rather than its own balance sheet liquidity. A novel concept in crypto, where 'alignment' usually lasts until the first major unlock.
This isn't just about reducing sell pressure. It's about rewriting the fundamental investment thesis. The value accrual shifts from speculative treasury management to pure utility and network adoption. The path to sustainable price growth just got a lot clearer—and Ripple's selling habit might finally be kicking.
Amid growing concerns over Ripple’s ongoing XRP sales, a top executive has hinted at the conditions that could prompt the company to stop selling the token. Over the years, members of the XRP community have repeatedly voiced frustration over Ripple’s sales of XRP on the open market.
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