Key Takeaways:
- VanEck’s Matthew Sigel questions XRP’s real-world utility and developer activity.
- Spot ETF XRPC posts record launch, highlighting institutional interest.
- XRP may derive value more from perception and historical adoption than transactional use.
XRP Utility Under Scrutiny
XRP is once again at the center of controversy after Matthew Sigel, head of digital assets research at VanEck, publicly questioned the token’s real-world utility. Posting on X, Sigel targeted XRP enthusiasts with a mix of sarcasm and skepticism, challenging the community to demonstrate genuine developer engagement on the XRP Ledger.
“Genuine question: has any developer ever woken up and said, ‘Time to build… on XRP’? Would love citations,” Sigel asked, highlighting the ongoing debate about whether XRP offers tangible value beyond speculation.
Also Read: Why VeChain, IOTA, and XRP Are Quietly Building the Future of Blockchain Utility
Developer Activity vs. Token Economics
Supporters pointed to initiatives such as Ondo Finance’s OUSG tokenized Treasury fund as proof of ecosystem activity. Sigel countered by asking how these projects benefit XRP token holders, noting a lack of fee capture, revenue sharing, or other direct economic linkages.
This line of questioning underscores a broader issue in crypto markets: network adoption and developer engagement are often used as proxies for a token’s intrinsic value. Sigel’s critique raises essential questions about whether XRP’s ledger serves as a meaningful platform for developers or merely fuels speculation.
Market Context: Spot ETF Success
The debate coincides with a major milestone for Ripple in traditional finance. Canary Capital’s spot ETF, XRPC, launched on November 13, posting $58 million in first-day trading volume—the largest single-asset ETF debut of 2025 so far. Its strong performance, including $26 million in the first hour, contrasts sharply with Sigel’s skepticism and demonstrates institutional interest in XRP-linked products despite lingering questions about on-chain utility.
Also Read: The XRP ETF Surge: Will Institutions Finally Move the Price?
Expert Perspectives and Comparisons
While Sigel’s critique challenges XRP’s narrative, voices like Solana Foundation’s Vibhu Norby offer a nuanced perspective. Norby compared XRP to Bitcoin as a store-of-value (SoV) coin, emphasizing its 13-year history and established payment mythology rather than high transactional use. This framing suggests that XRP’s value may derive more from perception and strategic adoption than from active network use.
Conclusion & Key Takeaways
As Ripple faces scrutiny from top analysts, the market continues to reward institutional adoption through ETFs. Investors should weigh both developer engagement and macro adoption trends when evaluating XRP’s potential.
