Ripple’s CTO, David Schwartz, recently shared his thoughts on XRP’s price and its actual worth. He basically said that the price doesn’t always reflect how useful XRP really is.
The Price-Utility Disconnect
XRP briefly hit $3 in July, its highest point since February. This sparked discussion, and Schwartz responded to questions about XRP’s price. He admitted that while price increases are nice, focusing too much on them is tricky. He pointed out that the price often doesn’t match XRP’s actual progress or its use in solving real-world problems. This gap isn’t permanent, but it’s pretty noticeable in the short term.
XRP’s Value Beyond the XRP Ledger
Schwartz used a clever example to explain this. He compared XRP’s use on the XRP Ledger’s Ethereum Virtual Machine (EVM) sidechain to Bitcoin’s use beyond its own blockchain. Even though XRP isn’t directly used on XRPL transactions within the EVM sidechain, its use as currency there still adds to its overall value. He emphasized that this indirect use is a significant part of XRP’s utility.
What Does This Mean for XRP Investors?
Schwartz’s main point is that XRP’s value isn’t limited to where it’s originally used. Just like Bitcoin is valuable on various exchanges and platforms, XRP’s use beyond the XRP Ledger shows its real worth. While many investors focus on short-term price targets, Schwartz suggests that long-term value is better measured by real-world use and adoption across different blockchains. The ultimate goal? Widespread adoption by banks, which is already starting to happen with central banks showing interest.
The Bottom Line
Currently, XRP’s price is around $2.96. Schwartz’s comments highlight a crucial point: Don’t just look at the price. Consider the broader use and adoption of XRP for a more accurate picture of its long-term value.