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<p>The post <a href="https://coinpedia.org/news/analyst-spills-the-beans-on-ripple-odl-misconception-to-boost-xrp-price/">Does Ripple’s ODL Really Drive Up XRP Price? Experts Debate</a> appeared first on <a href="https://coinpedia.org">Coinpedia Fintech News</a></p> 
<p>Renowned crypto figure Panos Mekras recently sparked a lively debate within the XRP community, focusing on Ripple’s On-Demand Liquidity (ODL), now rebranded as Ripple Payments, and its impact on XRP’s market value.</p> 
<h2 class="wp-block-heading" id="h-mekras-vs-community"><strong>Mekras vs. Community</strong></h2> 
<p>Mekras firmly <a href="https://x.com/panosmek/status/1774053103739813936?s=20">stated </a>the fact that Ripple’s solution for cross-border payments, though successful, does not guarantee to influence the price of XRP. Developers revealed that Ripple promotes its products, like ODL, as part of its business strategy. Yet, recent data shows XRP purchasers make independent investment decisions, not solely relying on Ripple’s efforts.&nbsp;</p> 
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   <p lang="en" dir="ltr">When I said that a while ago, I was attacked by some people purely for telling the truth. Now that Ripple says it and has confirmed it, what?<br><br>As a reminder: Ripple's use case and cross-border payment solution for XRP, no matter how successful (and I hope it is because it's a… <a href="https://t.co/yWu9KAOU9X">https://t.co/yWu9KAOU9X</a></p>— Panos 
   <img src="https://s.w.org/images/core/emoji/14.0.0/72x72/1f53c.png" alt="🔼" class="wp-smiley" style="height: 1em; max-height: 1em;">{X} (@panosmek) <a href="https://twitter.com/panosmek/status/1774053103739813936?ref_src=twsrc%5Etfw">March 30, 2024</a>
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<p>According to Mekras, most ODL transactions involve immediate buying and selling of XRP, without generating significant demand for XRP from ODL itself. This perspective aligns with Ripple’s submission to the SEC, where they explicitly stated that most ODL transactions are demand-neutral and do not impact XRP’s price. Furthermore, Mekras points out that much of the XRP utilized for ODL originates from Ripple’s escrow, which introduces additional selling pressure by injecting “new” XRP tokens into the market.&nbsp;</p> 
<p>Consequently, Mekras concludes that Ripple’s payment solution alone cannot drive up the price of XRP.&nbsp;</p> 
<p>In this context, Ripple provided a <a href="https://ripple.com/files/Ripple-Wells-Submission-Summary.pdf">document </a>to the SEC stating that most transactions using On-Demand Liquidity (ODL) don’t affect XRP’s price. This suggests that the value of XRP isn’t heavily influenced by speculative trading but rather by its practical use in cross-border payments. This reinforces Ripple’s argument about the utility of XRP beyond market speculation.</p> 
<h2 class="wp-block-heading" id="h-community-response"><strong>Community Response</strong></h2> 
<p>However, Nietzbux brings a different perspective, stressing the importance of market liquidity and a strong XRP value for effective ODL. He suggests expanding XRP’s uses to boost demand, rather than relying only on Ripple’s efforts.</p> 
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   <p lang="en" dir="ltr">Can ODL raise the price of XRP?<br><br>I respect some of the very smart people who say ODL will never raise the price of XRP. But that argument relies on some logic that I have trouble accepting. <br><br>For ODL to work efficiently, or for any bridging product using XRP, you need highly…</p>— nietzbux (@nietzbux) <a href="https://twitter.com/nietzbux/status/1774079703541772349?ref_src=twsrc%5Etfw">March 30, 2024</a>
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<p>Nietzbux finds this logic senseless, suggesting that it implies Ripple is relying on the community to generate the necessary demand and price increase for XRP.&nbsp;</p> 
<p>He presents a hypothetical scenario where a large bank wishes to transfer $100 billion using XRP, highlighting the impracticality due to the lack of liquidity. Nietzbux prompts reflection on why major banks haven’t embraced ODL fully and why ODL volume remains low compared to XRP’s total trading volume.</p>

Does Ripple’s ODL Really Drive Up XRP Price? Experts Debate

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