Black Swan Capitalist: XRP Doesn’t Need Utility to Go Higher. Here’s What It Needs

Vandell, co-founder of Black Swan Capitalist, believes XRP can continue appreciating even without increased utility, regulation or widespread adoption.

He stated on X that the asset’s historical performance supports his position, pointing to scarcity, market speculation and dollar-denominated asset inflation as major factors behind its price movements.

His comments also clarify that he does not dismiss institutional adoption but considers it an additional source of demand rather than a requirement for XRP to rise.

Vandell Explains XRP’s Historical Price Growth

He attributed these gains to asset inflation within the debt-based financial system, arguing that utility is not the only factor that drives prices higher.

Vandell maintained that XRP had already appreciated significantly without widespread adoption, regulatory clarity or substantial utility-driven demand, suggesting that similar market forces could continue to support its price.

Scarcity and Market Conditions Remain Central to His Argument

Vandell also explained that markets do not price assets exclusively according to their utility. Instead, he identified scarcity, narrative, perceived value and the effects of dollar inflation on risk assets as important influences on market prices.

He highlighted XRP’s fixed supply and escrow arrangements as factors that investors consider when assessing the asset. From his perspective, these characteristics, combined with wider market conditions, could continue supporting price appreciation even if adoption progresses more slowly than expected.

Vandell stressed that he was not rejecting the potential benefits of utility. He explained that institutional demand and global adoption could increase demand for XRP and amplify its price performance. His point was that these developments are not the only factors capable of driving an increase.

XRP Community Members Disagree Over Utility

The comments drew disagreement from other participants in the thread. Trevor Wells argued that XRP’s utility is connected to the value of the token, challenging Vandell’s comparison with Bitcoin.

The commenter pointed to asset tokenization and institutional liquidity requirements as developments that could make utility-driven demand increasingly important.

FlowOverNoise also suggested that institutional adoption could create demand beyond speculative trading if financial institutions need to acquire XRP, maintain reserves or use it to transfer liquidity.

The disagreement reflects two different views of XRP’s potential. Speculation, scarcity and macroeconomic conditions can influence prices, but sustained utility could introduce additional sources of demand. Neither outcome is guaranteed, and XRP’s future valuation will depend on market conditions and the extent to which investors and institutions actually demand the asset.