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Schwartz says XRP demand likely to follow XRPL adoption
Ripple's CTO emeritus argued that a highly successful XRP Ledger would probably not leave its token behind, while fee burns remain mainly anti-spam.
Key takeaways
- Adoption link. Schwartz expects XRPL success in finance to coincide with higher XRP demand, though he did not give a timeline or price target.
- Fee burns. He and supporters discussed how burning transaction fees is mainly designed to deter spam, not to lift the token's value directly.
- Bridge role. Even in a bitcoin-heavy settlement scenario, XRP could capture value by bridging wrapped or bridged bitcoin on the ledger, he said.
What happened
David Schwartz, Ripple's chief technology officer emeritus and one of the original architects of the XRP Ledger, has argued that it is very unlikely the network could become a major financial infrastructure platform without its native token also attracting strong demand. His comments, reported by U.Today and The Crypto Basic, came during a discussion on X about whether XRPL adoption and XRP fee burning affect the token's value.
Schwartz focused on the token's structural role on the ledger. He described XRP as the only native, counterparty-free asset that any account can accept, meaning it does not rely on a third-party issuer. He also noted that accounts need XRP to pay transaction fees and meet reserve requirements. Those features, along with the ledger's auto-bridging function, can support demand as activity grows, he said.
The conversation also addressed a hypothetical in which bitcoin becomes the dominant asset for settlements. Schwartz said that even in such a world, a successful XRPL would likely host several versions of wrapped or bridged bitcoin, with XRP capturing value by bridging between them. XRP supporter Saul pointed to auto-bridging as a practical way XRP connects trades between different assets, while XRPL validator Vet highlighted the network's built-in decentralized exchange and the role of assets such as Ripple USD (RLUSD) in strengthening XRP's position.
On fee burning, Saul argued that the mechanism was intended mainly to prevent spam rather than to push up XRP's price. Increasing fees would burn more XRP but could also make the network less appealing to users. Schwartz has previously said burns have little direct effect on price, though they can offer indirect benefits. His central argument is that XRP's value is tied more to use of the XRPL than to the amount of XRP destroyed in fees.
First $1.52Latest $1.26-17.1% over the period
Points are daily observations, not closing prices.
Why it matters
The exchange matters because it addresses a central question for XRP holders and developers: whether growth in the ledger's financial activity necessarily creates demand for the token itself. Schwartz's answer is that XRP's required roles, paying fees, meeting reserves, providing liquidity and bridging assets, make a successful XRPL and weak XRP demand an unlikely combination. He did not offer a price target, timeline or specific adoption threshold, and the discussion did not settle how quickly network usage might translate into market demand.
Background
The debate has persisted in the XRP community for years. Supporters have often pointed to fee burning and adoption as bullish factors, while skeptics question whether usage of the ledger automatically benefits the token. Schwartz has previously downplayed the direct price impact of burns, describing them as useful mainly for spam prevention and other indirect effects. The reports also noted that XRPL's low transaction fees and reliable performance are intended to attract financial activity, which in turn could increase the need for XRP as a bridge currency and transaction asset.
What to watch
Observers can watch several indicators that bear on Schwartz's argument: the volume and type of financial activity on the XRPL, use of auto-bridging, the circulation of RLUSD and wrapped or bridged bitcoin, and whether those activities create sustained demand for XRP. The fee-burning debate also involves a trade-off, because raising fees to burn more XRP could reduce the network's attractiveness. The reports did not provide metrics for any of these areas or a timetable for adoption.
Questions readers ask
Did Schwartz say XRP's price will rise?
He argued that a highly successful XRPL without high XRP demand and value is very unlikely. He did not provide a price target or timeline.
Does burning XRP transaction fees increase its value?
Schwartz and Saul said fee burning is mainly a spam-prevention mechanism. Schwartz has said burns have little direct price impact, though they can have indirect benefits.
How could XRP benefit if bitcoin dominates settlement?
Schwartz said a successful XRPL would likely have wrapped or bridged bitcoin, and XRP could capture value by bridging those assets. Auto-bridging connects trades between different assets.
