When Ripple CTO Explained Why XRP Can’t Be Cheap
2025-07-20 20:25:50
Main Idea
Ripple CTO David Schwartz argues that XRP must maintain a high price per unit to effectively serve as a bridge currency for high-value cross-border transactions, a point that remains relevant as Ripple's On-Demand Liquidity system expands globally.
Key Points
1. David Schwartz explained that a low-priced XRP would be impractical for high-value transfers, as it would require large quantities of tokens, making transactions cumbersome and expensive.
2. Higher XRP prices make payments cheaper and more efficient by reducing the number of tokens needed per transaction, which is critical for its role as a bridge currency.
3. Ripple's On-Demand Liquidity (ODL) system is now active in over 45 countries, facilitating cross-border payments without pre-funded accounts, increasing the demand for XRP.
4. As of the report, XRP is trading at $3.53, supported by institutional adoption, expanding utility, and regulatory clarity following the SEC lawsuit.
5. On-chain data shows large wallets have added over 2 billion XRP recently, indicating strong institutional confidence in its long-term potential.
Description
In a tweet that continues to echo through the XRP community years later, David Schwartz, Ripple’s Chief Technology Officer and one of the lead architects of the XRP Ledger, offered a powerful insight into why XRP simply can’t remain cheap if it’s to serve its intended purpose in the global financial system. Originally shared on November 21, 2017, and recently resurfaced by respected X user Xaif, Schwartz’s argument is more relevant today than ever. Why XRP Needs to Be Valuable In his two-part tw...
Latest News
- Legendary Trader Projects When XRP Will Surpass $42025-07-21 12:07:29
- DALPY Coin Ranked 6th in 2025 Global AI Open Source Startup List — A First for Meme Coin Projects2025-07-21 11:52:35
- Top Trader Predicts XRP to Surpass $4 Within 36 Hours, Says Don’t Expect $2 Again2025-07-21 11:18:19
- Analyst to XRP Holders: The End Is Near. Here’s the Significance2025-07-21 11:15:32
- Official LEI Document Outlines XRP’s Potential as a Global Bridge Asset2025-07-21 10:48:51