A recent post shared by crypto investor Stern Drew detailed how XRP’s valuation relates to the settlement efficiency of the XRP Ledger.
His analysis links directly to earlier remarks from Ripple CTO David Schwartz, who stated that keeping the asset’s price low offers no functional advantage. Drew expands on this by framing the issue purely from a settlement engineering perspective rather than from a speculative viewpoint.
Price, Liquidity Density, And Settlement Performance
Drew emphasizes that the core issue is liquidity density. In global settlement environments, efficiency depends on the ability to move large sums of value with the smallest possible number of units.
When the unit price is low, far more tokens are required to settle large transactions, which increases the strain on liquidity pools and heightens the risk of slippage and widened spreads. These pressures reduce corridor stability and undermine predictability.
As the unit value increases, fewer tokens are needed to settle the same volume. This leads to tighter execution, lower liquidity strain, and more consistent performance across corridors. Drew explains that this is the context behind Schwartz’s remark: a higher valuation is not about price enthusiasm but about the operational requirements of a high-value settlement asset.
🔥 WHAT DAVID SCHWARTZ IMPLIED 👇
When David Schwartz says
“There is no benefit to the price of XRP remaining low”
he is speaking from a settlement engineering perspective, not a speculative one.Low price means low liquidity density.
Low liquidity density means the asset… pic.twitter.com/ILkVmOWpK5— Stern Drew (@SternDrewCrypto) November 30, 2025
Architectural Alignment With High-Value Units
The analysis explains the structural characteristics of the XRP Ledger as evidence that it was built for high-value settlement. Its deterministic monetary policy, fixed supply, absence of mining issuance, and institutional-grade finality all create a system where value concentration improves reliability.
Drew draws parallels to established global settlement instruments such as Special Drawing Rights and other high-tier assets, where stronger unit value contributes to smoother throughput and less fragmentation.
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According to this view, the XRPL’s design is optimized for an asset capable of carrying substantial value per unit. This supports the argument that low valuations are not aligned with the system’s intended use case.
Global Settlement Requirements And Value Representation
Drew also relates the issue to the broader scale of global settlement flows. Foreign exchange markets settle more than seven trillion dollars daily. Tokenized treasury markets are expected to exceed 30 trillion in value, and additional demand will come from CBDCs and corporate payment systems. Even a modest share of such flows requires an asset that can represent significant value per token to avoid liquidity fragmentation across corridors.
He adds that higher unit prices tend to reduce relative volatility, which is critical for institutional settlement, where stability is as important as speed.
Drew concludes that the XRPL operates more efficiently at higher XRP valuations, aligning with the settlement requirements of large-scale financial systems. An X user, X Finance Bull, reinforced this view by stating that XRP was never intended to function as a low-value asset and that high-value settlement corridors depend on high-value units.
Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are advised to conduct thorough research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.
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