XRP News Today: Ripple CTO: XRP Price Must Rise for Network Efficiency

Ripple's Chief Technology Officer, David Schwartz, has highlighted the impracticality of XRP remaining at a low price point. In a tweet from November 21, 2017, Schwartz explained that if XRP were to cost $1, a transaction involving a million XRP would cost $1 million. Conversely, if XRP were to cost a million dollars, a single XRP would still cost $1 million. This underscores the inefficiency of using a large number of low-value tokens for high-value transactions, which are common in the banking and remittance sectors.
Schwartz's argument emphasizes the importance of XRP's price in maintaining the efficiency and scalability of the Ripple network. High-value transactions require fewer tokens, reducing network load and speeding up settlement times. This is crucial as Ripple's global network expands and more institutions adopt XRP for their transactions. A higher price point ensures that the same transaction value can be transferred with fewer tokens, keeping the supply liquid and available for other use cases.
The need for XRP to increase in price is also tied to its goal of being a scalable liquidity solution. As Ripple's network grows, maintaining a low price for XRP would require large amounts of the token to be locked up in each transaction. This would strain the ecosystem and make tokens less available for other real-time use cases. A higher price point ensures that the same transaction value can be transferred with fewer tokens, keeping the supply liquid and available system-wide.
Ripple's foray into the tokenization market further illustrates this point. The company aims to dominate this market with XRP, and recent projections suggest that the asset could reach $54 by capturing just 20% of the market. If the token remains too cheap, the amount required per transaction would balloon, hindering throughput and raising the risk of supply shortages during peak periods. As the utility of XRP grows, its price must rise to meet the demand and preserve its speed and efficiency.
Other experts have shared bullish predictions for XRP, suggesting that it could reach almost $300 if it captures just 20% of the global stock market. This prediction makes Discover XRP's $100 target feasible, and with the asset's accelerating adoption, it may hit that target soon. However, it is important to note that these are predictions and not guaranteed outcomes. Investors should conduct their own research and make informed decisions based on their individual circumstances.

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