Ripple's XRP Emerges as Crucial Ingredient in Innovative Trading Strategy to Enhance Market Depth
Community figure Eri has identified $XRP as the important ingredient in a “crypto sandwich” setup amid calls to improve liquidity on the ledger.
The $XRP community is now focusing on one issue they believe is important to the network’s future growth: liquidity. Several figures have recently stressed that stronger liquidity is necessary to help the $XRP Ledger (XRPL) reach its full potential.
Key Points
Eri identified $XRP as the center ingredient in a “crypto sandwich” setup for global remittances once liquidity issues are resolved.
Brett Mollin said liquidity is the biggest factor limiting the $XRP Ledger’s next growth phase.
Ripple and the $XRP Ledger Foundation are working to explore solutions for improving network liquidity.
Mollin said XRPL’s $XRP-bridging mechanism can create unified liquidity across assets when implemented correctly.
$XRP Within the “Crypto Sandwich” Setup
In a recent post on X, Eri, a prominent $XRP community figure, called attention to comments from Brett Mollin, Executive Director of the $XRP Ledger Foundation (XRPLF), who noted that liquidity was the biggest obstacle standing in the way of the ledger’s next phase of growth.
Notably, Eri argued that the infrastructure necessary for $XRP-based global remittances is already in place and that the next step is to improve liquidity across the ecosystem. “It’s time to solve the liquidity,” she said, referencing Mollin’s point.
According to Eri, $XRP now acts as the middle layer in a payment model where one fiat currency can be converted into crypto before being exchanged for another fiat currency. She called this model the “crypto sandwich” for global remittances and showed that $XRP has the most important part to play.
XRPLF Director Says Liquidity Is the Main Challenge
Her comments came in response to statements Mollin made in an X Spaces discussion hosted by XAO DAO in April. During the session, the host asked participants what they believed was preventing the $XRP Ledger from entering its next major growth stage and who should be responsible for solving the problem.
Responding, Mollin said liquidity is the biggest issue holding the $XRP Ledger back today. He explained that the network itself is performing well and is not facing any significant technical limitations.
According to Mollin, the ledger currently handles every transaction it receives without difficulty. He noted that transaction fees have not surged because of network congestion and that the XRPL continues to operate smoothly.
While he admitted that development efforts aim to prepare the network for future demand, the XRPL Foundation Director insisted that transaction capacity is not what is slowing growth.
According to him, liquidity remains the real challenge. He noted that increasing liquidity, much like attracting more users to the network, is a goal that benefits everyone in the ecosystem.
Ripple and the Foundation Working Toward Solutions
He stressed that although liquidity was not originally part of the $XRP Ledger Foundation’s mission, solving the issue will require cooperation from multiple parties.
Mollin revealed that he has been working with Ripple to address the problem. He explained that the $XRP Ledger Foundation’s actual role is to provide expertise on how the XRPL works and how its unique features can be used effectively.
Meanwhile, Mollin also pointed out that the XRPL does not need large liquidity pools between every pair of assets. Instead, liquidity can be built between individual assets and $XRP, with the ledger automatically using $XRP as a bridge between them.
According to Mollin, the $XRP Ledger has an advantage over many other blockchains because it can maintain unified liquidity instead of fragmented pools when used correctly.
However, the system cannot support seamless cross-border payments between currencies such as U.S. dollars and Australian dollars if there is not enough liquidity available. Without this liquidity, $XRP cannot fully perform its intended role as a bridge currency.
Community Calls for Increased Liquidity
Around the same time as Mollin’s remarks, Jake Claver, Chairman of DAG, argued that $XRP must have deep liquidity to function effectively as a bridge asset for large financial institutions.
For $XRP to work as a bridge currency between two banks settling a $50 million transaction, it needs enough liquidity in the pool to handle that transaction without moving the price
Ripple doesn't just want $XRP to be valuable, they need it to be
Institutional adoption isn't just…
— Jake Claver, QFOP (@beyond_broke) April 2, 2026
According to him, $XRP would need enough liquidity to support a $50 million transaction between two banks without causing major price fluctuations. “Ripple doesn’t just want $XRP to be valuable, they need it to be,” he added.