XRP News Today: XRP Price Driven by Demand as Production Cost Debate Intensifies

A fresh debate has emerged in the cryptocurrency market, focusing on whether production cost significantly influences the price of XRP and how it compares to Bitcoin. CrediBULL Crypto, a market expert, has outlined a pricing model where production cost, combined with speculative and utility value, determines the market price of both XRP and Bitcoin [1]. The analyst asserts that while Bitcoin’s price is largely driven by mining costs—including energy and time—XRP’s production cost is arguably near zero, making its valuation primarily a function of demand and adoption [1]. This distinction has sparked discussions about the long-term viability of premined tokens versus mined ones.

CrediBULL Crypto’s analysis comes amid a public exchange between experts BD and Bitcoin maximalist Robert Breedlove. Breedlove argued that XRP’s 100% premined status makes it fundamentally different from Bitcoin, which he refers to as 0% premined. He warned that such a structure could expose XRP to risks like large-scale sell-offs or rug pulls, potentially leading to a collapse in value [1]. In response, BD emphasized that market demand—not production method or cost—dictates price over the long term. He pointed out that neither Bitcoin’s mined supply structure nor XRP’s premined model inherently ensures long-term survival [1].

CrediBULL Crypto expanded on this by stating that production cost does not guarantee long-term market resilience. The analyst noted that demand can vanish for any asset, regardless of whether its production cost is $5 or $100. Using a metaphor, the analyst compared high-cost production to digging a massive hole—though labor-intensive, it holds no intrinsic value unless others find use for it [1]. This analogy underscores the idea that value is derived from utility and perceived demand, not the effort required to create the asset.

The ongoing discourse has also touched on investor sentiment and market reactions. Following the SEC’s legal settlement with Ripple, XRP experienced a significant price increase, rising more than 5% at one point [2]. Analysts have linked this movement to the resolution of legal uncertainties rather than production cost factors. In contrast, Bitcoin’s price is more influenced by institutional demand and broader macroeconomic trends [3]. While XRP’s lower production cost may make it more scalable, Bitcoin’s entrenched adoption and institutional backing remain key factors in its market dominance [1].

The debate also considers the role of engineered structures like “Stretch,” which aim to reduce volatility. However, these strategies remain closely tied to Bitcoin’s price movements and overall market trust [4]. This reinforces the idea that even with innovative design, Bitcoin continues to be a central reference point in the crypto market. As the market evolves, investors are increasingly scrutinizing how production costs intersect with demand and regulatory clarity [1].

With the broader crypto market showing heightened volatility and capitalization reaching new highs, attention is now turning to whether XRP can secure ETF approvals once legal uncertainties are fully resolved [5]. For now, the analysis suggests that while production cost plays a role in pricing, it is not the sole determinant of long-term success. The relationship between cost, demand, and regulatory developments remains a critical area of focus for investors seeking to assess XRP’s potential in comparison to Bitcoin [1].

Sources:

[1] Analyst Outlines How Production Cost Determines XRP Price, But Is It Better Than Bitcoin? (https://www.newsbtc.com/analysis/xrp/production-cost-xrp-price-2/)

[2] SEC, Ripple to End Legal Battle as Both Parties Abandon (https://m.fastbull.com/news-detail/sec-ripple-to-end-legal-battle-as-both-news_6100_0_2025_3_6814_3/6100_SOL-USDT)

[3] Will Institutions Outperform Bitcoin? If So, Then How? (https://www.mitrade.com/insights/news/live-news/article-3-1025239-20250809)

[4] Strategy's Capital Pyramid: Is 'Stretch' the Smartest or Riskiest Layer Yet? (https://www.ccn.com/education/crypto/strategys-capital-pyramid-is-stretch-the-smartest-or-riskiest-layer-yet/)

[5] The Crypto Market Is Heating Up as Summer Volatility Kicks In (https://www.facebook.com/photo.php?fbid=739964958916715&set=a.130****63246274&type=3)