Ripple CTO David Schwartz believes that a higher price for XRP benefits the company in multiple ways.
This view by Schwartz, made a few years back, has recently resurfaced within the XRP community. The message supports a long-standing belief that Ripple’s long-term strategy closely aligns with the value of XRP.
The renewed focus on Schwartz’s earlier remarks comes at a time when Ripple has completed $2.5 billion in acquisitions, expanded its institutional footprint, and now holds over $90 billion worth of XRP, according to data from Ripple’s API. For many, the past is finally aligning with the present.
Schwartz’s 2017 Insight: Why XRP Price Matters to Ripple
In his resurfaced 2017 tweet, Schwartz outlined several ways a higher XRP price directly strengthens Ripple’s business. He explained that a more valuable XRP supply gives Ripple greater leverage.
A higher price for #XRP would help @Ripple several ways: pic.twitter.com/iSgRK6Mmn1
— David 'JoelKatz' Schwartz (@JoelKatz) September 5, 2017
Specifically, Ripple can incentivize partners and liquidity providers more effectively. The company can raise more revenue from XRP sales.
Moreover, a higher value typically brings greater liquidity and trading volume — both essential for XRP’s role as a global intermediary asset. Larger liquidity pools also allow Ripple to target bigger and more profitable payment corridors.
Schwartz also noted that public perception plays a role. Whether fair or not, XRP’s price is often a measure of Ripple’s success. That perception can influence whether institutions choose to integrate Ripple’s technology.
He added that a higher price reduces volatility on similarly sized sales, making it cheaper for institutions to hold XRP and hedge exposure. And importantly, a higher value enables larger transactions:
“When Bitcoin sold for $1, you couldn’t use it to buy a house. You can now… Bigger transactions require bigger value.”
Today, this early insight reads like a blueprint for Ripple’s current strategy.
“A higher price for XRP” https://t.co/aJbDfn6d2v
— {x} (@unknowDLT) December 1, 2025
Ripple’s 2025 Reality Shows the Vision Aged Well
Fast forward to today: Ripple’s financial position has expanded far beyond what was possible when Schwartz first posted that tweet.
As of December 1, 2025, Ripple controls:
- 34,700,000,005 XRP in escrow, worth about $71 billion
- 4,954,117,520 XRP in usable wallets, worth over $10.2 billion
Together, Ripple holds nearly $92 billion in XRP, forming one of the largest single-asset treasuries in global finance.
This immense reserve reflects exactly what Schwartz described eight years ago: Ripple grows stronger when XRP’s price increases. Every $1 rise in XRP today would add roughly $40 billion to Ripple’s balance sheet. This dynamic is the foundation of Ripple’s expanding institutional strategy.
Analysts’ Views
Prominent community analysts such as CrediBULL and Digital Asset Investor have argued that Ripple and XRP’s price have always been interconnected, even if Ripple avoids stating this openly for regulatory reasons.
Ripple’s leadership continues to emphasize XRP’s importance. CEO Brad Garlinghouse has said that XRP remains central to the company’s strategy, and President Monica Long has noted that Ripple Prime is exploring XRP-backed collateral for institutional liquidity.
Analysts believe Ripple’s long-term plan is to build global liquidity systems, treasury tools, brokerage services, settlement networks, and tokenization platforms — all of which function more effectively when XRP is more valuable.
This creates a simple loop: higher XRP → more liquidity → bigger institutional use → higher Ripple value → more growth → even higher XRP.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
