Ripple News: Is XRP a Scam? Blockchain Expert Weighs In

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Ripple News: Is XRP a Scam? Blockchain Expert Weighs In
Table Of Contents
  1. Ripple News Update: Is XRP a Scam or Just Facing Growing Pains? Ripple CTO Fires Back
  2. Blockchain Expert Criticizes XRP: "Biggest Financial Scam"?
  3. Ripple CTO Responds: XRP's Utility Goes Beyond AMMs
  4. Community Support: Real DEX Volume Might Be Much Higher
  5. Why Is XRPL’s DEX Volume Still Low Compared to Others?
  6. Conclusion: XRP Isn’t a Scam — It’s Still Evolving

Ripple News Update: Is XRP a Scam or Just Facing Growing Pains? Ripple CTO Fires Back

The XRP community is buzzing after a well-known blockchain researcher raisedq concerns over Ripple’s utility. The question making rounds is: “Is XRP a scam or simply misunderstood?” Ripple’s CTO, David Schwartz, has stepped in to offer some much-needed clarity.

Blockchain Expert Criticizes XRP: “Biggest Financial Scam”?

A blockchain analyst named7 Aylo, from the research group Alpha Please, recently labeled XRP as the “biggest financial scam” due to what he described as alarmingly low trading volume on decentralized exchanges (DEXs).

In a post on X (formerly Twitter), Aylo pointed out that XRP Ledger (XRPL) recorded just $44,000 in 24-hour DEX volume, despite XRP’s large market cap. He questioned the true utility and value of XRP, stating that its low on-chain activity doesn’t match its $140 billion market capitalization — a figure cited from DeFiLlama.

Aylo also highlighted the Total Value Locked (TVL) on XRPL stood at only $80.63 million, which pales in comparison to Ethereum, Solana, and Binance Smart Chain, raising eyebrows in the broader crypto space.

Ripple CTO Responds: XRP’s Utility Goes Beyond AMMs

David Schwartz, CTO of Ripple, responded by clarifying that Aylo’s analysis only focused on Automated Market Makers (AMMs) — which represent a small portion of the XRP Ledger’s full trading activity. Schwartz emphasized that the AMM feature was only integrated into XRPL in March 2024, marking the early stages of XRPL’s entry into decentralized finance (DeFi).

He argued that the $44K figure doesn’t represent the entire network, as XRP usage spans far beyond just DEX-based trading.

Community Support: Real DEX Volume Might Be Much Higher

Backing up Schwartz, a dUNL validator named Vet shared alternate data suggesting that actual 24-hour DEX volume on XRPL was closer to $9 million, significantly higher than Aylo’s claim.

Vet also pointed out that DeFiLlama might not account for all types of XRPL transactions, particularly those outside AMMs. According to him, if all XRPL activities were accurately measured, the total value and network usage would likely be much more substantial.

Why Is XRPL’s DEX Volume Still Low Compared to Others?

Despite the defense, it’s true that XRP trails behind major DeFi ecosystems like Ethereum0 and Solana in terms of DEX volume. For instance, Ethereum’s DEX volume e

xceeds $1.4 billion, whereas XRPL is still building its DeFi foundation.

Historically, XRP has focused more on cross-border payments and enterprise solutions, rather than DeFi. Only recently has XRPL started expanding into areas like NFTs, AMMs, and stablecoins, signaling a new growth phase for the network.

Conclusion: XRP Isn’t a Scam — It’s Still Evolving

The recent XRP debate serves as a reminder that on-chain metrics alone don’t always tell the full story. While XRP’s DeFi presence is still developing, its core use case in global payments continues to remain strong.

As Ripple pushes further into DeFi and the XRP Ledger ecosystem matures, we may see a significant rise in on-chain activity, potentially challenging the current criticisms.

With the ongoing SEC vs Ripple case nearing resolution and5 new partnerships expected, investors are watching closely to see what lies ahead for one of crypto’s most talked-about assets.

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