Ex-Ripple CTO Explains Why a Higher XRP Price Benefits the Network

David Schwartz, Ripple’s CTO Emeritus, recently shared a definitive view on X regarding XRP’s market valuation and its connection to the asset’s utility.

“The higher the price, the better,” he stated. “A higher price would tend to mean liquidity is more cost-effective and slippage is less.”

This remark was far from speculative, emerging instead from a discussion concerning how XRP operates as a bridge asset on the ledger.

The higher the price, the better. A higher price would tend to mean liquidity is more cost-effective and slippage is less.

— David 'JoelKatz' Schwartz (@JoelKatz) November 9, 2026

XRP’s Role on the Ledger

The exchange originated when a community member expressed concerns regarding XRP’s price movement. The user questioned why the asset had failed to see significant price growth despite Ripple expanding its global footprint through RippleNet and the rollout of its stablecoin, RLUSD.

Ripple leadership has encountered heavy criticism lately due to stagnant XRP prices, even following major milestones like the final approval of Ripple National Trust Bank. A central worry among critics is that high demand for moving money across the ledger should naturally drive up the token’s price.

In response, Schwartz explained that the price of XRP is “largely dragged around by the market” and only secondarily driven by developments tied specifically to XRP. He noted that while this was his interpretation of market dynamics, it aligned with the evidence he observed.

Why Slippage Is Central to This

A subsequent inquiry from the same user steered the dialogue toward its most insightful takeaway, asking whether a higher valuation is essential for XRP to manage large ledger transaction volumes free of liquidity limitations.

Schwartz verified that it is, directly linking the asset’s price to its payment efficiency. Slippage describes the gap between a transaction’s anticipated execution price and its actual execution price. Low liquidity leads to elevated slippage and higher transaction expenses.

Elevating the price of XRP scales up the value of existing liquidity pools without demanding a greater volume of tokens. Consequently, transferring large sums across the ledger becomes both cheaper and more streamlined.

XRP As a Utility Asset

XRP was engineered to function as a bridge currency, facilitating value transfers between entities lacking a shared fiat currency or direct banking connection. Achieving this at scale requires robust liquidity. Stronger liquidity yields tighter spreads alongside minimized transaction costs.

Schwartz’s remarks validate the notion that price growth and XRP utility are deeply intertwined. Even so, observers continue to question why XRP valuations have not surged given its underlying purpose. Long-standing arguments within the XRP community claim the token is undervalued relative to its utility, a perspective now supported by Schwartz’s technical explanation.

Frequently Asked Questions

What did David Schwartz say about the XRP price?

David Schwartz stated on X that “the higher the price, the better,” explaining that a higher valuation makes liquidity more cost-effective and reduces slippage.

How does a higher XRP price affect transactions?

A higher price increases the value of available liquidity pools without requiring more tokens, making it cheaper and more efficient to move large sums across the ledger.

What causes slippage in crypto transactions?

Slippage happens when liquidity is thin, creating a larger gap between the expected price of a transaction and the actual execution price, which drives up costs.

Why hasn’t the price of XRP exploded if it has utility?

Schwartz noted that XRP’s price is “largely dragged around by the market” and only secondarily impacted by network-specific developments, despite its vital role as a bridge asset.