Ripple CEO Brad Garlinghouse (브래드 갈링하우스) pointed to demand and supply, real-world use and liquidity as key factors in XRP’s value.

On Sept. 25, blockchain outlet The Crypto Basic reported that Garlinghouse said XRP’s price is driven more by institutional demand and market liquidity than by simple network transaction counts.

At the Phaena Forum event, Garlinghouse explained the role of cryptocurrencies in cross-border payments, stablecoins and financial infrastructure. He was also asked about the link between XRP Ledger activity and XRP’s value, and why XRP is not a security.

On XRP’s legal status, he cited a 2023 ruling by U.S. federal district court judge Anisa Torres and said, "A federal judge directly found it is not a security," effectively reaffirming the view that XRP is not a security.

He offered a simpler explanation of how prices are formed. Garlinghouse said, "The price of every digital asset is very simple: supply and demand." He added, "XRP has a fixed supply, and how many investors want it is its value."

He named trust, utility and liquidity as the main items Ripple focuses on in expanding its business related to XRP. Garlinghouse said, "For Ripple, XRP is like a North Star," and added, "We want to grow trust in XRP, utility, speed and liquidity."

He stressed that liquidity is especially important for institutional investors. The easier an asset is to buy and sell, the better suited it is for financial institutions, and it can remain attractive even when market instability grows. By contrast, he said assets that are hard to quickly convert into cash or switch into other assets can become more burdensome to hold.

He also cited broader use in payments and financial services as a factor that can lift demand for XRP. Garlinghouse said, "If more institutions generate more transactions and the asset becomes more useful, people will want to hold it." He argued that XRP’s value is not determined simply by the number of transactions on the ledger, but that how much banks, institutions and companies actually use it matters more.

Garlinghouse also said Ripple has invested more than $1 billion in companies connected to the XRP ecosystem. He also mentioned that XRP was the second-largest digital asset by market capitalisation before a lawsuit by the U.S. Securities and Exchange Commission. Ripple is focusing on widening XRP’s demand base through ecosystem investment and expanded financial use.

Ultimately, Garlinghouse’s explanation is that XRP’s value is not determined by network activity alone. His message was that as use in institutional payments and financial infrastructure grows and liquidity deepens to support it, demand for XRP could also rise.