Crypto researcher SMQKE, via a tweet, has drawn attention to a highlighted excerpt from an official Ripple document, stating: “RIPPLE’S BUSINESS MODEL RELIES ON THE IDEA THAT DEMAND FOR XRP WILL INCREASE ITS PRICE.” The post is accompanied by an image from a Ripple publication titled “XRP Demand Examined,” which outlines the foundational principles behind Ripple’s approach to XRP’s long-term viability. The document in question includes clear statements from Ripple Labs that support SMQKE’s assertion. The referenced page comes from Ripple’s published materials and explicitly addresses the sources of XRP demand. Ripple affirms the fixed supply of 100 billion XRP and emphasizes that no more can be created under the protocol’s rules. Against this backdrop, the document outlines how Ripple anticipates demand for XRP to grow in tandem with the broader adoption of its protocol. Key Highlights from the Ripple Document The document explicitly states, “Ripple Labs’ business model is predicated on a belief that demand for XRP will increase (resulting in price appreciation) if the Ripple protocol becomes widely adopted.” This statement confirms SMQKE’s claim by outlining a direct link between XRP demand and Ripple’s strategic expectations of price growth. The same section also makes a critical distinction between types of demand. Ripple highlights the importance of “long-term ‘organic’ demand (as opposed to purely speculative demand),” and notes that for such demand to exist, XRP must “provide some utility to its holders.” The document goes on to identify two utility functions: XRP is used for security within the network and as a bridge currency . RIPPLE’S BUSINESS MODEL RELIES ON THE IDEA THAT DEMAND FOR XRP WILL INCREASE ITS PRICE Documented. https://t.co/JlrDPMBUtX pic.twitter.com/8lZy3ppMs4 — SMQKE (@SMQKEDQG) July 11, 2025 We are on X, follow us to connect with us :- @TimesTabloid1 — TimesTabloid (@TimesTabloid1) June 15, 2025 XRP’s Utility in Network Security and Bridge Functionality The document describes how XRP is used to secure the Ripple network by discouraging spam and denial-of-service (DoS) attacks. The network charges tiny fees in XRP for each transaction and requires small reserves to prevent abuse. For example, each account must maintain a reserve of 20 XRP, and small transaction fees—typically fractions of a cent—are permanently destroyed with each payment. These mechanisms are intended to create an economic barrier against spamming the network with excessive transactions. Ripple also requires small reserve amounts for trust lines and working orders, further emphasizing XRP’s function as a deterrent against system abuse. These utility features, Ripple asserts, contribute to organic demand for the asset because they ensure the stability and reliability of the network. Implications of the Business Model The documentation presented in SMQKE’s tweet substantiates the claim that Ripple’s business model inherently depends on the increasing demand for XRP. It confirms that Ripple views the success of its protocol and the corresponding increase in XRP demand as essential for the long-term appreciation of XRP’s price . This aligns with Ripple’s strategic interest in fostering adoption of its technology, not solely for transaction processing, but also as a foundational driver of demand for XRP. By framing XRP as both a security mechanism and a bridge currency, Ripple underscores the practical utility it believes will drive this demand. Disclaimer : This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are advised to conduct thorough research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses. Follow us on X , Facebook , Telegram , and Google News The post New Official Ripple Document: Demand for XRP Will Increase Its Price appeared first on Times Tabloid .
