$XRP Market narratives often focus on short-term price moves, while protocol-level mechanics receive less attention. A recent post from crypto researcher SMQKE (@SMQKEDQG) adds depth to that overlooked area. He revisited official Ripple documentation to explain how XRP functions inside the network.

👉XRP as a Liquidity Asset

SMQKE stated that XRP “acts as the native liquidity asset for the protocol, enabling fast and efficient value movement across currencies and systems.” He connected this role to institutional usage. His post explained that as more institutions connect to the network, liquidity demand rises by design.

XRP does not sit idle inside the system. It moves value between endpoints. That movement requires available XRP at scale. Liquidity, therefore, becomes a functional requirement.

👉What the Document Shows

The attached image highlights a section titled “The Role of XRP.” The document highlights XRP as the native currency of the network, noting that it has a security function and aids liquidity provisioning on the network. The text also notes that users can continue using local currencies while XRP supports transfers behind the scenes as a bridge currency.

The document links adoption to demand. It states that if the protocol becomes widely adopted, demand for XRP may increase, which can lead to price growth.

👉Liquidity Demand and Price Growth

Each new corridor, product, or participant increases transactional flow. That flow requires XRP to source liquidity quickly. Institutions seek efficiency. They also seek reliability. XRP fills that role when used as a bridge asset.

As usage expands, the system needs deeper pools, which require more tokens. The price responds to that requirement when supply meets rising functional demand.

👉Protocol Layer Utility

The document contrasts XRP with information protocols such as HTTP or SMTP. It states that investors can directly invest in XRP as the “value transport layer of the Internet.” SMQKE used this point to reinforce utility at the protocol layer. XRP links ownership to network usage.

That link matters for valuation, as utility scales with adoption. Liquidity scales with utility, and the price reflects that progression over time. The case presented relies on structure, not hype. It frames XRP as infrastructure that gains value through utility.

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