Ripple CTO emeritus says XRPL adoption will likely boost XRP price

Potential for XRP as XRPL adoption grows

Schwartz, who has long been a central figure in both Ripple and XRPL’s development, discussed the potential relationship between the ledger’s success in financial applications and the value of XRP during a recent exchange on X.

He expressed doubt about the possibility of the XRP Ledger becoming widely adopted as a major financial infrastructure platform without XRP seeing a corresponding rise in demand or value.

I think a world where XRPL is highly successful in financial applications but XRP does not have high demand and value is very unlikely.

Schwartz outlined several distinctive features that set XRP apart within the network. He highlighted the fact that XRP is both native and counterparty-free on the XRP Ledger, unlike many other assets that depend on outside issuers.

He further noted that XRP is essential for paying transaction fees and maintaining account reserves on XRPL, factors he said naturally drive its demand.

All of those things can help drive value and demand.

These comments were aimed at addressing an ongoing debate within the XRP community about whether increased network adoption is enough to guarantee more demand for XRP itself.

XRP’s role in a multi-asset digital future

Schwartz added that even if Bitcoin were to emerge as the dominant digital settlement asset, the success of the XRPL would likely contribute to XRP’s utility.

He argued that in such a scenario, the need to move assets efficiently across the XRPL would probably result in various forms of wrapped or bridged Bitcoin on the ledger. XRP would then take on a key role in facilitating the movement and exchange of these assets on the network.

Wrapped or bridged cryptocurrencies allow users to transfer assets between different blockchain networks, thereby increasing liquidity and utility for the tokens involved.

Mini dictionary: Wrapped/bridged cryptocurrencies — Digital tokens that represent assets from another blockchain network, enabling their use and movement on different blockchains. For example, wrapped Bitcoin (wBTC) is a tokenized version of Bitcoin designed for use on the Ethereum or other networks, helping to connect liquidity and utility across ecosystems.

Schwartz maintained that it is difficult to envision a future where XRPL achieves significant financial adoption without generating substantial demand for XRP itself. He suggested that the unique design choices embedded in the network reinforce XRP’s central role, regardless of the digital asset landscape.