Former Ripple CTO David Schwartz has pushed back against the idea that XRP’s role in paying XRP Ledger transaction fees should be expected to materially drive its price, as frustrated holders continue questioning how network growth ultimately creates value for XRP.
The latest exchange followed calls for Ripple to create a stronger XRP use case comparable to the role BNB plays across Binance’s ecosystem.
XRP holder VanceGG argued that Ripple could find a heavier use case for XRP within its ecosystem, adding that relying mainly on XRP’s role in transaction fees appears insufficient for establishing significant token value.
Schwartz disagreed with the premise that gas demand was ever expected to be a major XRP price catalyst.
“I don’t think anyone knowledgeable has suggested that XRP’s use as gas would be a significant driver of the price of XRP,” Schwartz said.
I don't think anyone knowledgeable has suggested that XRP's use as gas would be a significant driver of the price of XRP.
I think half the answer is here:https://t.co/fCA0rcJQCc
— David 'JoelKatz' Schwartz (@JoelKatz) November 9, 2026
His response redirects the debate toward a broader question: if transaction fees are not expected to drive XRP substantially higher, what is?
Schwartz Points to XRP’s Privileged Position on XRPL
Schwartz answered that question by resurfacing a three-part explanation he originally published in November 2025.
His first argument is that increasing adoption of the XRP Ledger can add value to XRP because XRP occupies a unique position within the network.
Unlike issued XRPL assets, XRP has no counterparty, is not tied to a particular jurisdiction and is favored by XRPL’s autobridging mechanism, which can use XRP as an intermediary asset to improve liquidity between otherwise disconnected trading pairs.
This is not a new position. The Crypto Basic previously detailed Schwartz’s argument that XRP has important functions on XRPL beyond acting as a gas token.
He has also argued that greater XRP Ledger adoption should ultimately increase XRP’s value, although the relationship is not necessarily immediate or proportional.
Short-Term XRP Price May Not Depend on Utility
Schwartz’s second point is more significant for holders focused on price.
He said he is not convinced utility is especially important to short- or medium-term price performance, beyond ensuring that XRP operates on a stable network and remains scarce, fungible, censorship-resistant and easy to transfer.
That position separates two ideas often treated as interchangeable within the XRP community: increasing utility and increasing token price.
XRPL activity can expand without producing an equal increase in XRP demand. Conversely, XRP can experience substantial speculative price moves without a comparable increase in underlying network usage.
That distinction has become particularly relevant with XRP currently trading around $1.09, down more than 20% over the past month.
XRPL Was Never Designed to Make XRP Price Rise
Schwartz’s third point is the most direct.
“XRPL was not designed as a way to make XRP’s price go up,” he said in the earlier post.
Instead, the XRP Ledger was designed to provide a fast and inexpensive native asset, decentralized exchange and payment infrastructure.
The Crypto Basic covered those remarks when Schwartz first stressed that XRPL was not created to make XRP’s price appreciate.
That does not mean Schwartz sees no connection between XRPL success and XRP value. His argument is that the value would emerge from XRP’s structural advantages and broader network adoption—not merely from users burning tiny amounts of XRP to pay transaction fees.
Holder Frustration Is Shifting Toward XRP Value Capture
VanceGG’s criticism comes directly after another holder called on Schwartz and Brad Garlinghouse to explain Ripple’s “real plan” for XRP.
Schwartz responded that Ripple has no secret XRP plan it has yet to reveal.
The latest discussion therefore moves the debate one step further.
The question is no longer simply whether Ripple has communicated its plans. It is whether growing activity across XRPL, payments, stablecoins, tokenization and institutional finance will create enough direct or indirect demand for XRP to materially affect its value.
Schwartz’s answer remains consistent: transaction fees alone are unlikely to accomplish that. The larger case rests on XRP retaining a privileged liquidity role as XRPL adoption expands.