Ripple Exec Reveals What Will Drive The XRP Price Value

Reason to trust Strict editorial policy that focuses on accuracy, relevance, and impartiality Created by industry experts and meticulously reviewed The highest standards in reporting and publishing How Our News is Made Strict editorial policy that focuses on accuracy, relevance, and impartiality Ad discliamer Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio. Ripple Labs Chief Technology Officer, David Schwartz, has offered rare and pointed clarity on what drives the XRP price valuein the long term, despite the company’s recent spotlight on its new stablecoin, RLUSD. In a recent exchange with an XRP supporter on social media, Schwartz emphasizedthat the crypto continues to sit at the core of Ripple’s payment infrastructure, especially as the main bridge asset in cross-border transfers. XRP’s Role As A Bridge Asset Is Still Central

While RLUSD plays a specific role,Schwartz reveals XRP’s utility in real financial use cases will ultimately boost its value. His comments reaffirm Ripple’s longstanding plan for the digital asset, relying on XRPfor its proven liquidity and built-in role on the ledger as it explores other digital options. Related Reading XRP Set To Explode? Analyst Sees $5 Surge Any Moment – Details 14 hours ago

In his response, Schwartz directly addressed growing speculation that the company may be shifting its attention away from XRP in favor of its new stablecoin, assuring that the digital assetremains Ripple’s cross-currency asset that allows for fast, low-cost currency exchanges. While Schwartz didn’t share exact data, he said he was confident that the token’s usage “dwarfs every other asset” in Ripple’s system.

XRP links to how the XRP Ledger functions, so an increase in ledger activity is almost guaranteed to drive more demand for the crypto token, naturally lifting its price value as it becomes more essential in global financial workflows.

Schwartz argued that as real-world adoption of the Ripple blockchain networks grows, so will demand for XRP. The embedded demand, as more businesses and developers build on XRPL, is what could be the core driver of XRP’s future price value. Ripple CTO: Stablecoins Support, XRP Sustains

Some community members worried that Ripple’s new stablecoin RLUSD, launched in December 2024, could replace the crypto token, but Schwartz clarifies that the stablecoin and XRP serve different purposes. He said stablecoinslike RLUSD are better suited for use cases that require a fixed value, such as when companies post collateral or need to enter and exit markets without dealing with large price swings. Related Reading XRP Blows Cold: Price Crash To $2.15 Still Possible If Buyers Falter 17 hours ago

Volatility in crypto markets can be disruptive in these scenarios, and stablecoins avoid that issue by holding a steady price. However, Schwartz believes that for most other applications, especially those related to real finance and long-term holdings, digital assets like XRP are still the better choice. He noted that, unless highly risk-averse, most long-term users would likely prefer holding the top digital asset over cash because of their potential for upsideand active role in blockchain ecosystems.

The Ripple exec added that as more institutions turn to XRPL for financial use cases, XRP’s rolein facilitating quick currency movement becomes more vital, particularly in volatile markets where stablecoins may not be ideal. 

Schwartz made a subtle but important distinction, saying XRP’s place on XRPLis privileged. With this, the crypto token is less likely to be replaced or worked around, providing a long-term advantage that many other tokens may not have. Price fails to hold $3 support | Source: XRPUSDT on TradingView.com Featured image from Unsplash, chart from TradingView.com