VanEck Research Chief expresses doubts about XRP’s true value, pointing to lack of development proof
A high-ranking official at investment firm VanEck has cast doubt on the practicality of XRP and its ledger, reigniting discussions about the cryptocurrency’s value as a new exchange-traded fund (ETF) tied to the token has seen a successful launch, setting the record for the best debut of any ETF in 2025.
Matthew Sigel, who leads digital assets research at VanEck, has expressed skepticism about whether developers are actively working on the XRP Ledger and whether the token is generating economic value from network transactions. This questioning of XRP’s utility has sparked a fresh debate within the cryptocurrency community, highlighting the ongoing division over whether XRP serves as a utility token for cross-border transactions or mainly operates as a speculative investment.
Sigel’s critique started with a sarcastic jab at XRP supporters, questioning the core functionality of the blockchain network. He followed up with a genuine inquiry about the level of developer engagement on the XRP Ledger, prompting discussions around the lack of concrete examples of active development on the platform. Despite some pointing to instances like Ondo Finance launching its token on the XRP Ledger, Sigel raised concerns about the economic value this activity brings to XRP holders.
The conversation expanded to touch on controversies surrounding Ripple’s leadership and XRP’s role in funding initiatives like Greenpeace’s “Change the Code” campaign. Sigel drew a distinction between XRP and Bitcoin, highlighting Bitcoin’s institutional adoption, sovereign wealth fund investments, and government-backed mining operations in multiple countries to support his argument against pure speculation.
The doubts raised by Sigel coincided with the successful launch of Canary Capital’s XRP ETF, which saw a remarkable $58 million in trading volume on its first day, surpassing other ETF debuts in 2025. The strong market interest in XRP via traditional financial products contrasts with Sigel’s concerns about the fundamental value drivers of the token.
Vibhu Norby from the Solana Foundation weighed in on the conversation with a more nuanced perspective, likening XRP to a store of value similar to Bitcoin with lower transaction fees. He noted the minimal transaction activity on the XRP Ledger compared to smart contract platforms but suggested that this limitation does not necessarily compromise the token’s value proposition.
The discussion delved into the underlying factors that determine the value of digital assets, emphasizing the diverse ways in which utility tokens, store of value assets like Bitcoin, and smart contract platforms like Ethereum derive their worth. The tension between XRP’s marketing as a payment solution and its function as a speculative asset underscores the broader challenges in evaluating cryptocurrency assets beyond their trading potential.
In conclusion, the scrutiny of XRP’s utility by VanEck’s executive sheds light on the ongoing uncertainty surrounding the token’s practical applications, especially as institutional products tied to its price gain traction in the market. The juxtaposition between the successful ETF launch and doubts about developer activity underscores the complexities of assessing the true value of cryptocurrency assets in a landscape dominated by speculative trading and varied utility models.
