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XRP Ledger Upgrade Could Make Owning XRP Optional: Will Demand Fall?
The XRP Ledger is proposing an upgrade that would allow banks to cover network fees for their customers, enabling users to transact on the ledger without needing to own XRP.
Published:
Updated:
What happened
The XRP Ledger is proposing an upgrade that would allow banks to cover network fees for their customers, enabling users to transact on the ledger without needing to own XRP.
Confirmed
Global impact / market context
If users can avoid buying XRP, demand for the token could decline, potentially lowering its price and affecting Ripple’s revenue from token sales. It also changes how banks interact with the ledger.
Analyst inference
XRP’s price has been closely tied to its utility as a transaction fee token. A shift to fee‑payment by banks could reduce that utility, prompting investors to reassess XRP’s growth prospects and its role in the broader crypto market.
Analyst inference
What to watch
- Whether validators (the nodes that confirm transactions) approve the upgrade, which determines if the fee‑payment change can be implemented. Proposed
- Bank adoption rates for the new fee‑payment model, as higher adoption could accelerate the reduction in XRP demand. Analyst inference
- Ripple’s response, such as adjustments to its business model or token incentives, which could influence investor sentiment and XRP’s market dynamics. Analyst inference
Affected assets
- XRP — XRP