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Key Takeaways
- XRP Ledger validator Vet argued that RLUSD and USDC serve different functions from XRP on the network, with XRP handling auto-bridging and transaction fees while stablecoins serve participants seeking to avoid volatility.
- Anodos Finance CEO Panos echoed Vet’s position, saying many community members misunderstand what the XRP Ledger was built for and urging focus on liquidity, developer activity, and adoption over speculative price expectations.
- The debate over stablecoins has coincided with growing frustration over extreme XRP price forecasts, with analyst Zach Rector criticizing influencers for promoting aggressive projections without technical support.
XRP Ledger validator known as Vet rejected claims that stablecoins such as Ripple’s RLUSD and Circle’s USDC threaten XRP’s role on the network, arguing in a post on X that the assets serve different functions and operate as complements on the network rather than competitors.
Vet: XRP’s Auto-Bridging and Transaction Fee Functions Are Distinct From Stablecoin Roles
Vet pushed back directly on critics who argued that stablecoins issued on the XRP Ledger compete with XRP for relevance on the network, writing on X:
“You have it completely wrong if you think issued assets on the XRP Ledger like RLUSD or USDC are in competition with XRP.”
Vet explained that the XRP Ledger operates as both a multi-asset network and a decentralized exchange. Within that structure, he said, XRP links liquidity across different assets through a feature called auto-bridging and is used to pay transaction fees on the network. He argued that those functions differ from what stablecoins are designed to do, and that greater stablecoin activity on the network supports rather than undermines XRP’s role.
On use cases, he drew a distinction between assets suited to price-sensitive situations and those used by participants seeking to avoid volatility. He maintained that the XRP Ledger was built to support multiple types of assets operating alongside one another, and that the presence of stablecoins and other issued tokens on the network does not displace XRP’s central liquidity role.
Anodos Finance CEO Says Parts of the XRP Community Misunderstand What the XRP Ledger Was Built to Do
The debate also drew a response from Panos, chief executive of Anodos Finance, who echoed Vet’s position while addressing what he described as a broader misunderstanding of the XRP Ledger’s design.
“Many people still have no idea what XRP and the XRPL actually represent and what they were built for,” he wrote on X.
Panos pointed to other blockchain networks as examples, arguing that hosting a mix of stablecoins, tokenized assets, lending platforms, decentralized finance applications, and commodities has not threatened any individual asset’s position within those ecosystems.
Panos also addressed what he described as the drivers of lasting network demand, arguing it comes from concrete activity rather than speculation. He pointed to liquidity, developer activity, functioning products, and active users as the key factors, and urged the XRP community to focus on adoption and network activity rather than price expectations driven by speculation.
Rector Criticizes Influencers Over Unsupported XRP Price Forecasts
The internal debate over stablecoins has unfolded alongside growing frustration over extreme XRP price projections circulating in the market. Analyst Zach Rector recently criticized influencers for promoting aggressive price forecasts without technical support, according to a post on X. Rector did not provide alternative price targets or technical data in his remarks, and the broader community discussion has remained focused on network fundamentals rather than specific valuations.
