The cryptocurrency community is no stranger to debates around the real-world utility of specific tokens, and the recent remarks by a senior executive at VanEck have further stoked these discussions surrounding XRP. As a new spot ETF has unveiled record-breaking launch numbers, Matthew Sigel, head of digital assets research at VanEck, has cast doubt on the intrinsic value and use cases of the XRP Ledger and its associated token.
Taking to X, Sigel engaged the XRP community with a blend of sarcasm and skepticism. He opened with a post that seemed both incredulous and probing, stating, “Dear XRP maxis, I may never understand what your ‘blockchain’ actually does, but I’ll always respect the passion required to pretend it does something. So keep hustling!” This set a combative tone for the thread that followed, where he posed earnest questions regarding the engagement of developers within the XRP ecosystem.
The Utility Debate Reignites
In his subsequent posts, Sigel questioned the developer engagement on the XRP Ledger, specifically asking, “Genuine question: has any developer ever woken up and said, ‘Time to build… on XRP’? Would love citations.” His critique highlighted a perceived lack of developer activity and on-chain transactions, which many regard as fundamental indicators of a blockchain’s value proposition.
After several hours of observing minimal responses from the XRP community, Sigel’s clarity turned to frustration as he noted, “Zero replies so far.” This challenge underscored the notion that, in a competitive crypto landscape, tangible developer traction is essential for demonstrating a blockchain’s viability as a platform.
In addressing a supporter who pointed out the launch of Ondo Finance’s OUSG tokenized Treasury fund on the XRP Ledger, Sigel pivoted the debate to token economics. “Cool initiative, but does any of this actually accrue value to XRP token holders? I’m not aware of any fee capture, revenue share, burn, or economic linkage. I think maybe I’m not smart enough to understand but I’ll keep trying to learn and update my views!” he wrote, emphasizing his quest for clarity regarding the economic incentives tied to XRP.
The conversation also traversed the broader implications of XRP’s market presence, including a notable exchange about the fortunes accrued through it. Sigel remarked about the irony of Ripple’s involvement in funding various campaigns, a clear nod to its environment-related initiatives that have polarized different factions within the crypto ecosystem.
When a user accused Sigel of attempting to “hold ppl back” from investing in XRP, he countered by highlighting the impressive institutional traction surrounding Bitcoin. He noted, “retail investors like University Endowments, Sovereign Wealth Funds, and today a Central Bank are now in bitcoin,” arguing that this engagement could not be overlooked in the discussion of asset validity.
Against this backdrop of turbulent discussions, Canary Capital’s spot ETF, XRPC, launched on November 13 and made waves by generating approximately $58 million in trading volume on its first day, including an impressive $26 million in the initial hour. This achievement has not only positioned the XRPC as a leading single-asset ETF launch of the year but has also set a high standard that other funds, including Bitwise’s Solana ETF, will strive to match.
At present, XRP is trading at $2.27, as traders and investors closely monitor the unfolding dynamics within the cryptocurrency landscape.
