Expert Says These 5 Bullish Facts Around XRP Don't Change, No Matter What Anyone Says

Source: CryptoNewsNet Original Title: Expert Says These 5 Bullish Facts Around XRP Don’t Change, No Matter What Anyone Says Original Link: https://cryptonews.net/news/altcoins/32187455/

XRP’s Decentralization and Deflationary Model

Jake Claver, CEO of Digital Ascension Group, has shared what he sees as major facts about XRP and the XRP Ledger that would never change amid the ongoing criticisms the XRP ecosystem has faced.

First, Claver highlighted XRP’s decentralization. The XRP Ledger runs as a layer-one blockchain supported by a global network of independent validators. The network uses its own consensus model instead of proof-of-work or proof-of-stake, which prevents any single entity from controlling the system. While early adopters were promoted by Ripple, the XRPL operates as an open-source network that Ripple does not own or control.

Secondly, Claver addressed XRP’s deflationary model. XRP launched in 2012 with a fixed supply of 100 billion tokens, and the protocol does not allow the creation of new tokens. Each transaction permanently removes a very small amount of XRP, usually about 0.00001 XRP, to discourage spam. Since launch, this process has burned 14.2 million XRP, about 0.014% of the total supply. Although the reduction remains small, the supply continues to decline over time.

XRPL Features Native DEX, Supports Tokenization, and Avoids External Threats

For his third point, Claver highlighted the XRPL’s built-in decentralized exchange (DEX). Upon its launch in 2012, the XRPL came with a native DEX that still operates today. It allows users to trade XRP and issued tokens directly using a central limit order book. The network later added automated market makers to improve liquidity, all without relying on external applications.

Meanwhile, Claver’s fourth fact revolved around tokenization. From its launch, the XRPL has allowed users to issue custom tokens representing stablecoins, real-world assets, and other financial instruments. The network introduced this capability without smart contracts, making it the first blockchain to support broad token issuance at the protocol level. Over time, this support has expanded to include fungible tokens, NFTs, and assets such as tokenized treasuries and real estate.

For his fifth point, Claver called attention to the XRPL’s unique design that makes it stand out. Specifically, core functions such as payments, escrow, token issuance, and decentralized trading operate directly at the layer-one level. This removes dependence on complex smart contracts and reduces exposure to common risks like exploits, wallet drains, and blind signing. Notably, while tools like Hooks allow limited programmability, the main network keeps its core features native and rule-based.

Counter Arguments from Critics

Critics have presented alternative perspectives on XRPL’s capabilities. They argue that XRP lacks a mechanism that links usage to price growth and noted that only a small portion of supply has burned since 2012. They also claim that using XRP as a bridge asset does not support price appreciation because trades involve quick buying and selling.

Additionally, critics suggest that holding XRP provides no exposure to business growth and describe the XRPL as having low rankings in total value locked, a limited share of the real-world asset and stablecoin markets, and a small number of full-time developers. They point to daily DEX volume below $3 million as evidence of limited adoption.

Critics also reference decisions to issue most related stablecoins on other major blockchain platforms and bridge them to multiple networks, arguing that activity on those chains benefits their ecosystems rather than XRP directly.