**Ripple’s Global Expansion Through Hidden Road Acquisition: What It Means for XRP**
Ripple’s recent acquisition of Hidden Road marks a significant step in its global expansion, although analysts remain cautious about any immediate increase in trading volume for the XRP token. Research suggests that Ripple’s on-demand liquidity (ODL) model has a neutral effect on XRP supply, which may prevent any major price surges following the announcement. The company has recently emerged from a prolonged legal battle with the SEC. While the outcome required Ripple to pay a monetary penalty, it also allowed the leadership to claim a degree of success. CEO Brad Garlinghouse mentioned that the company might consider paying a portion of its $50 million fine in XRP. This statement came after President Donald Trump included XRP, along with Solana (SOL) and Cardano (ADA), in a newly announced crypto reserve earlier this month.
In a discussion with Fox Business, Garlinghouse expressed confidence in Ripple’s ability to make significant investments, such as the acquisition of Hidden Road. Just a year ago, the idea of spending $2 billion seemed far-fetched due to the legal challenges the company faced. However, Ripple now appears committed to expanding its holdings and exploring new services. Garlinghouse noted a shift in the regulatory landscape in Washington, suggesting that regulators are becoming less adversarial toward digital assets. He even described the transition as moving “from headwinds to tailwinds” for the crypto industry in the United States.
Despite this optimistic outlook, those anticipating a boost for XRP from the Hidden Road acquisition may want to reconsider. A researcher known as @DarkhorseDNME4 pointed out that Ripple’s internal mechanisms may not create sudden buying pressure for XRP. They emphasized that many are mistakenly linking XRP’s price movements to trading volume, which does not align with how Ripple operates on the XRPL. The ODL model effectively neutralizes transactions on both ends, as confirmed by Ripple’s executives.
Ripple’s ODL system relies on balanced inflows and outflows, often resulting in a neutral impact on XRP supply. Additionally, a stablecoin-based approach could potentially bypass the need for XRP altogether. If Ripple utilizes an XRPL-based version of its stablecoin, XRP’s role may be limited to covering minor transaction fees. The same analyst also challenged the notion that XRP could surge to $9 in the near future, suggesting that even a small portion of new trading volume directed toward XRP might not significantly affect its price.
While some traders point to factors like increased token burn rates and the buzz following the lawsuit as potential catalysts for moderate gains, the researcher remains skeptical about a rapid price spike. Garlinghouse also made a bold prediction for Bitcoin, suggesting it could reach $200,000, but he refrained from speculating on XRP’s future price, stating that it feels premature to discuss. Meanwhile, XRP continues to hold its ground in the market.
