Ripple CEO Unpacks What Really Drives XRP’s Value — Here’s Everything You Need to Know

XRP’s value may depend on far more than price charts and market hype. Ripple CEO Brad Garlinghouse has offered a broader look at the forces that shape the token’s long-term value, highlighting the role of real-world utility, demand, and liquidity.

The remarks stem from a recently resurfaced appearance by Garlinghouse at Faena Rose, where he participated in a discussion titled “The Transformative Power of Crypto Assets.”

Legal Clarity Meets Supply and Demand

During the discussion, Garlinghouse was asked to explain the connection between XRP’s value and activity on the XRP Ledger, and why he considers XRP a non-security.

The Ripple CEO pointed to U.S. District Judge Analisa Torres’ 2023 landmark ruling in the company’s legal battle with the U.S. Securities and Exchange Commission (SEC). Garlinghouse argued that the court’s decision underpins his position on XRP’s regulatory status.

“I can convince you it’s non-security because a federal judge said it’s a non-security,” Garlinghouse asserted.

He also offered a straightforward explanation for what drives XRP’s price: supply and demand. According to the Ripple chief, the value of any digital asset ultimately reflects the balance between how much market participants want it and how much is available.

For XRP, he noted that the token’s supply is fixed, meaning changes in demand can play a significant role in determining its market value.

Ripple’s North Star

Garlinghouse said Ripple is working to strengthen XRP on three fronts, with greater trust, broader use cases, and deeper liquidity at the center of its strategy.

“At Ripple, we talk about XRP as our North Star,” he opined. “We want to drive trust in XRP, utility in XRP, and the velocity, meaning liquidity, of XRP.”

According to Garlinghouse, liquidity matters because assets that can be bought and sold easily are more practical for institutions and other market participants.

He added that expanding XRP’s utility across payments and financial services could encourage greater institutional use, potentially increasing demand for the token.

“If I’m getting more institutions driving more transactions, and it’s more useful, people are going to want to hold it,” Garlinghouse posited.

The Ripple boss also highlighted liquidity as a key consideration during periods of financial stress. When an asset cannot be quickly bought or sold, investors may be less willing to hold it because of concerns about how easily they can convert it into another asset.

Garlinghouse also highlighted Ripple’s financial commitment to the wider XRP ecosystem. According to the CEO, Ripple has deployed over $1 billion into companies operating within the ecosystem, reflecting the company’s push to expand the token’s practical applications. 

His broader argument is that as payments and other applications built around XRP continue to grow, network activity can increase alongside demand for the token.

In other words, Garlinghouse argues that XRP’s value cannot be measured simply by counting transactions on the ledger. Greater adoption among banks, financial institutions and businesses could create additional demand for XRP while making deep, reliable liquidity increasingly important.