XRP News Today: XRP Price Surges 3.8% to $3.53 as Institutional Adoption Grows

David Schwartz, Ripple’s Chief Technology Officer and one of the lead architects of the XRP Ledger, provided a compelling argument in 2017 about why XRP cannot remain cheap if it is to serve its intended purpose in the global financial system. This argument, originally shared on November 21, 2017, and recently resurfaced by respected X user Xaif, remains highly relevant today.

Schwartz’s argument is straightforward yet powerful. He explained that if XRP were to cost $1, a transaction requiring a million XRP would cost $1 million. Conversely, if XRP cost a million dollars, a transaction requiring one XRP would also cost $1 million. This highlights the necessity for XRP to have a higher value per unit to minimize the number of tokens needed for high-value transfers, thereby reducing costs and network congestion.

Schwartz further clarified that higher prices make payments cheaper. When an asset is low in value, moving large amounts becomes inefficient and causes unnecessary market impact. However, when a token is more valuable, fewer tokens are needed to transfer the same amount of money, making the transaction smoother and cheaper. This is particularly important for a bridge currency like XRP, which is designed to facilitate real-time cross-border payments.

Xaif’s decision to resurface this post is timely, as XRP is no longer just a theoretical tool but a real-world solution. Ripple’s On-Demand Liquidity (ODL) system is now active in over 45 countries, helping banks and payment providers move funds across borders without the need for pre-funded accounts. As global payment flows expand into the trillions, the logic behind Schwartz’s argument becomes even more critical. XRP must hold significant value per unit if it’s to serve as a serious instrument for financial liquidity. A low-priced XRP simply wouldn’t be viable for handling such volumes at scale.

As of the report time, XRP is trading at $3.53, reflecting growing momentum in both institutional adoption and market confidence. The price has steadily recovered from earlier dips and surpassed its previous all-time high of $3.40. This surge is backed by major factors, including institutional buying, increasing utility through Ripple’s expanding network, and stronger regulatory clarity following the long-standing SEC lawsuit. On-chain data reveals that large wallets have added more than 2 billion XRP in the past few weeks, a clear signal of renewed belief in the asset’s long-term potential.

In conclusion, David Schwartz’s message from 2017 still holds powerful relevance in today’s landscape. As Xaif rightly reminded the community, XRP’s role isn’t just to be another tradable coin; it’s to be the backbone of a new global payment system. And for that to happen, it can’t stay cheap. A valuable tool requires a valuable token. Now, the market finally seems to be catching up to that truth.