A recent update from blockchain researcher SMQKE has reignited the debate around the deeper functionality of XRP within its native Ledger. This expert highlighted XRP as a crucial technical requirement, not just a digital asset used for trading.
According to SMQKE, an excerpt from the published report describes XRP as "a regulatory switch for the XRP Ledger." This statement implies that XRP is key to the operation of the Ledger, as it is the process that allows users to interact with each other and the system to function.
A certain amount of XRP must be reserved to create an account on the XRP Ledger. This also applies to other critical features such as establishing trust lines and trading. These actions cannot be performed without XRP, meaning it is a mandatory asset for any user interacting with the network.
In addition to these requirements, the report also identifies competitive advantages across the entire XRP ecosystem. LETS enthusiasts want the price of XRP to remain low to maintain low access costs. At the same time, price volatility creates profit-making opportunities for traders.
XRP is identified as a technical prerequisite in the operation of the Ledger.
Payment service providers rely on price stability to avoid risks in cross-currency transactions. These different user demands place XRP at the center of a delicate balance between utility and market performance.
Ripple addressed these concerns in 2017 by locking up 55 billion XRP in an escrow account and only releasing 1 billion each month. This was done to stabilize the token supply and control stakeholders by giving them confidence that XRP would be predictable in its distribution and market dynamics.
SMQKE's reference positions XRP as an essential factor integrated into the Ledger framework rather than a speculative token. Access, control, and deployment of core functions throughout the system are based on its technical requirements.
This perspective shifts the focus from changing the price of XRP to using it as infrastructure. Just as groups of users with different needs use the same network, XRP continues to balance utility and market forces in determining its identity.