Price debates in crypto often fixate on short-term movements and retail speculation, overlooking the deeper mechanisms that drive real adoption and utility.
XRP, unlike many other digital assets, operates primarily as an institutional settlement layer, designed to handle massive transaction volumes that far exceed typical spot market activity. Understanding this context is key to appreciating why conventional price limits may not apply.
Stern Drew recently argued on X that dismissing XRP’s potential for high valuations overlooks its purpose. Drew says XRP was built for institutional-grade settlement, not retail trades, changing how we should value it.
XRP’s Role in Institutional Settlement
Central to this argument is the real-world application of XRP in global payments. Ripple’s On-Demand Liquidity (ODL) product enables institutions to source liquidity instantly across borders, bypassing the delays and costs of traditional systems such as SWIFT.
People saying $XRP can’t go past $10,000 are missing the scale entirely.
One Ripple partner moves more value in a single day than Bitcoin settles in a year.
XRP was built to settle institutional volume, not retail trades.At that scale, low prices make no sense.
High prices…— Stern Drew (@SternDrewCrypto) December 26, 2025
ODL now operates across major remittance corridors, processing billions in daily transaction volume. In fact, some Ripple partners settle more value in a single day than Bitcoin handles in an entire year. This scale underscores why XRP’s pricing dynamics are unlike those of retail-oriented tokens.
The XRP Ledger (XRPL) facilitates these transfers with near-instant finality, low fees, and deterministic settlement, making it uniquely suited for large-scale liquidity deployment.
Unlike Bitcoin or Ethereum, whose throughput and confirmation times can bottleneck institutional use, XRP was engineered to meet operational demands that prioritize speed, compliance, and efficiency.
Different Math for High-Volume Assets
Stern Drew highlights that traditional price thinking fails when applied to assets serving as infrastructure for trillions in financial flows. Low prices can hinder settlement efficiency by requiring more units to move equivalent value, while higher prices can streamline liquidity management for institutions.
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This framework reframes valuation from speculative demand to functional utility, emphasizing operational efficiency over market hype.
Adoption and Market Implications
Institutional integration also shifts the perception of supply and demand. As more corridors adopt XRP for liquidity, locked or actively used XRP becomes a structural component of global payments.
This situation makes conventional retail price ceilings irrelevant – the asset’s value depends on its usefulness in moving capital, not daily trading sentiment.
Skeptics who peg XRP’s ceiling to historical performance overlook the transformational scale of its application. XRP is not competing on narrative or retail popularity—it operates in a different league, serving the foundational infrastructure of cross-border finance.
As Stern Drew notes, ignoring this scale leads to underestimating what XRP can achieve both in utility and, potentially, in valuation.
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 urged to do in-depth 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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