21shares sees XRP demand growing as XRPL activity expands

Asset manager 21shares argues that expanding activity on the XRP Ledger (XRPL) could lift demand for XRP, even though the growth is not driven by direct XRP usage.

How XRPL activity could affect XRP demand

21shares links three primary functions of XRP to network activity: transaction fees, account reserve requirements, and bridge transfers that move value between XRPL and other blockchains. Each XRPL transaction burns a small amount of XRP (0.00001 XRP) as an anti‑spam measure, and more than 14 million XRP have been burned since 2012, representing about 0.014 % of the original supply.

Stablecoins and tokenized assets driving usage

Stablecoins, led by Ripple USD (RLUSD), now account for a larger share of XRPL transactions. RLUSD’s total supply is around $1.6 billion, with more than half circulating on XRPL by mid‑2026. Monthly RLUSD‑related transactions grew from roughly 54,000 in December 2024 to between 600,000 and 1.1 million in 2026, processing about $900 million in the six months through June 2026.

Tokenized assets on XRPL are estimated at $4 billion. The ledger’s Multi‑Purpose Token standard enables institutions to issue bonds, funds, and other securities with built‑in compliance, extending XRPL utility beyond simple payments.

DeFi and decentralized exchange activity

XRPL includes a protocol‑level decentralized exchange (DEX) that allows issued assets to trade directly. While DeFi volume remains modest—over $30 million according to 21shares—new lending infrastructure is being built by Ripple, Clearpool, and Cicada Partners, using RLUSD as the credit asset.

Network scale and settlement value

Over the past year, XRPL averaged about 1.7 million transactions per day and processed roughly $1.3 billion in on‑chain value daily, approaching half a trillion dollars in total settlement activity.

Investment thesis

21shares emphasizes that increased XRPL activity can generate demand for XRP through fees, reserves, and bridge liquidity, rather than a direct one‑for‑one relationship between issued assets and XRP holdings.