XRP’s relatively low price has long been a point of debate within the crypto community. Critics often argue that XRP must remain “cheap” to function effectively as a global payments token. However, market expert John Squire has recently explained why that claim is illogical.
The Myth That XRP Must Be Cheap for Utility
Squire in the X post reverted to a post by the platform’s CTO, David Schwartz, in 2017. In that post, Schwartz explained that XRPL fees are paid in XRP, not USD.
However, Schwartz also added that with higher prices, payments become cheaper, and he illustrated this with the example of a $1 million purchase. If XRP has a value of $1, the individual would need 1 million tokens. However, if it is valued at $1 million, the same purchase would cost only one token.
Interestingly, one of the most common arguments against XRP’s price growth is the belief that a higher price would limit its usefulness for cross-border payments. However, this logic suggests that the coin’s increased value does not weaken its utility; rather, it strengthens it.
Institutional Adoption Changes the Narrative
Another factor challenging the cheap narrative is growing institutional interest. As Ripple continues to expand its partnerships with banks, payment providers, and financial institutions, XRP’s role is shifting from a retail-focused asset to an infrastructure-level liquidity provider.
Further, the success of spot XRP ETFs has also cemented the fact that institutions are highly interested in the cryptocurrency. Market analysts note that institutions prioritize reliability, scalability, and regulatory clarity over the price of a single token.
As Ripple advances in compliance and enterprise adoption, the coin’s valuation is increasingly driven by real-world usage rather than speculative assumptions. In addition, as institutional volumes increase, demand for XRP’s liquidity is likely to rise significantly, putting upward pressure on the price without compromising functionality.
Price Action Reflects Growing Confidence
XRP’s recent price action suggests a significant uptrend in the crypto market, as top assets, including Bitcoin and Ethereum, are trading in the green. According to data from asset tracker CoinMarketCap, the payment coin has surged by 8% in the past 24 hours to reclaim $2, flipping BNB to reclaim 4th in the cryptocurrency market.
Despite the recent uptrend, the token still faces resistance around the $2.20 level, and a break above this level could push it to $2.67, where another resistance is located.
Meanwhile, a Standard Chartered analyst had speculated that the token would surge to $8 by 2026, and this recent uptrend could serve as the catalyst needed to trigger a massive increase in value.
The CoinRemark Team
