Is This 1 New Problem for XRP, or 1 Reason to Buy It?

Core Insights - XRP is currently facing scrutiny due to its low daily fee revenue, which is approximately $300 across all XRPL decentralized applications, raising concerns about its valuation compared to other protocols that generate millions in fees daily [1][3][4] Group 1: Fee Structure and Implications - The minimal fee revenue generated by XRP suggests it may be overvalued, as traditional valuation logic equates higher revenue with stronger fundamentals [3] - XRP's fee mechanism is designed to burn a small amount of XRP per transaction, which does not create a revenue stream for validators or tokenholders, indicating a lack of financial incentive for network participants [4][5] - The daily burn of XRP is estimated to be between 163 to 750 XRP, which is negligible compared to the total supply of 100 billion and circulating supply of over 60 billion [5] Group 2: Target Market and Design Philosophy - XRP was engineered as a low-cost financial infrastructure aimed at financial institutions, focusing on payment processing and regulatory compliance rather than maximizing transaction fees [8] - Some investors view the low fee structure as a positive aspect, suggesting it aligns with XRP's intended use case as a cost-effective solution for financial transactions [7]