Expert Shares Two Approaches to Investing in XRP

A prominent figure in the XRP community, WrathOfKahneman (WOK), recently shared his insights on two approaches to investing in XRP.

The two strategies highlight different perspectives on how to approach the asset, focusing on adoption and its utility within the XRP Ledger (XRPL).

Approach One: Betting on XRP Adoption Beyond Ripple

WOK pointed out that one potential investment approach focuses on the adoption of XRP, particularly beyond Ripple’s ecosystem. This strategy revolves around the belief that XRP could gain wider use across various industries and platforms outside Ripple’s direct effort.

Other influential voices in the XRP community, such as Panos Mekras, also support this perspective. According to Mekras, the XRP ecosystem is robust without Ripple. He cited significant integrations like Xahau, the EVM sidechain, Flare, Root Network, Axelar, Coreum, and Anodos as “making XRP the most powerful ecosystem on Earth.”

XRP Ledger + Xahau + EVM sidechain + Root Network + Flare + Coreum + Axelar + Anodos = the most powerful ecosystem on earth! You are not ready! 🔼

— Panos 🔼{X}🇬🇷 (@panosmek) February 11, 2025

For investors, the hope is that this broader adoption will eventually push the price of XRP higher as demand for the token increases across different sectors.

Approach Two: Focusing on the XRP Ledger Utility

On the other hand, WOK also highlights an approach centered on XRPL use in diverse ways and sectors. This approach sees value in XRP as the gas token of the XRP Ledger, which powers the blockchain’s operations. 

For instance, WOK commends the role of meme coins on XRPL, saying, “glad they bring value to the ledger.”

By investing in the development and utilization of the XRP Ledger itself, investors could tap into growth from the ledger’s increasing use across various applications, from finance to supply chain management. 

This perspective sees XRP’s value linked directly to the volume and activity on the XRPL, which may drive the price of the token up over time.

Community Weighs In

The conversation gained traction with community members expressing their views about investment in XRP.

X user “ResourceEvolution” emphasized that the XRPL and XRP are inherently linked. They believe that higher transaction volumes on the XRPL will lead to a natural increase in XRP’s price.

Other commenters took a more humorous approach, comparing the decision to invest in XRP to taking the blue pill or red pill. They draw on the famous Matrix analogy to depict the choice between betting on XRP adoption beyond Ripple or diversifying across the XRPL.

“Either buy into that ‘adoption’ hopium or diversify. Both paths get you somewhere,” the statement read.

Meanwhile, Lon Copper expressed excitement about both approaches. He suggested that investors should consider both to understand the potential of XRP in the coming years.