Ripple CTO David Schwartz maintains that XRP cannot stay dirt cheap, as it suggests higher liquidity and more efficient payments. This perspective comes amidst ongoing debates about XRP’s low price, a hot topic in the crypto scene. Recently, XRP plummeted to $0.39, a 16-month low, amid a broader market downturn.
Last month, XRP traded above $0.53. However, on June 5, XRP dipped below $0.4. This drop prompted a community member to recall Schwartz’s 2017 statement asserting that XRP cannot be “dirt cheap.” Back then, XRP was in the early stages of a bull run, eventually reaching an all-time high of $3.84. Today, XRP has lost about 90% of that peak value.
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Community Reaction
A community member recently asked Schwartz for an updated perspective on his past comment. Instead of addressing XRP’s current value directly, Schwartz reiterated his original statement. He emphasized that it costs $1 to buy enough XRP tokens to make a $1 payment.
Some community members challenged Schwartz, accusing him of deviating from the main issue. However, Schwartz insisted his statement had not deviated and explained that his original point remains valid. He illustrated that if XRP costs $1, an entity would need a million XRP to make a $1 million payment. Conversely, if XRP were priced at a million dollars, they would need just one XRP for the same $1 million payment.
Importance Of Higher Prices
Schwartz highlighted that higher prices facilitate cheaper payments due to sufficient market liquidity, requiring fewer tokens for transactions. On the other hand, lower prices would necessitate more coins, posing a challenge as it could impact the market.
Related article: Ripple CTO Endorses RLUSD Stablecoin as Beneficial for XRP
Essentially, Schwartz stressed that this idea had not deviated, forming the foundation of his statement that XRP cannot remain dirt cheap.
In a separate discussion on Reddit six years ago, Schwartz explicitly mentioned that higher XRP prices usually align with increased liquidity, resulting in more affordable payments. This fundamental view remains unchanged despite current market conditions.
