Ripple CTO says XRP price has nothing to do with “real value” – what does it mean

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In the latest article on social media platform X, Ripple CTO David Schwartz has made his voice amid discussions about the price of XRP and its true value. According to his comments Ripple CTO hint XRP’s price changes are often inconsistent with its “real value” or utility. His remarks are part of a larger thread that reacts to Ethereum’s recent break Touch the price level of $3 again.

Ripple CTO highlights price and utility disconnection

The latest price action has made the XRP trading again at $3 for the first time since February 1. It’s an interesting price surge behind, with XRP increasing by about 25% in a short period of time. In these price changes. David Schwartz, chief technology officer of Ripple, answers user questions on social media platforms X His opinion XRP once again hit $3 through the mixed feelings of attention to price expression.

Schwartz said he always felt it When prices go up, it’s good However, given its inconsistency with fundamental progress and does not seem to be very relevant to other benefits such as solving real-world problems, it is difficult to judge the appropriate focus that should be placed on price. He went on to point out that this disconnection is not necessarily permanent, but is very obvious in the short term.

To explain how XRP use cases extend beyond XRP Ledger (XRPL), Schwartz compares how Bitcoin functions outside of native blockchain. Ripple CTO points to the Ethereum Virtual Machine (EVM) Sidechain of XRP Ledger, XRP is used as Although there is no currency directly related to XRPL transactions in this environment. According to him, this indirect usage still meaningfully promotes the practicality of the token.

“A good analogy is that XRP is used as a currency on EVM Sidechain. It is not using XRP directly on XRPL, but it is still part of the utility and value of XRP used as currency,” Schwartz said.

What does this mean for XRP?

Basically, David Schwartz notes that the value generation of XRP is not limited to locally hosted locations. It’s much like Bitcoin derives functional value between centralized exchange, packaging version, and other layer 2 solutions. Therefore, XRP Applications outside XRP ledger Even if market pricing is not currently reflected, it still represents a meaningful measure of its utility.

Although many XRP investors are currently in Short-term price milestonesSchwartz’s comment points out real-world usage and cross-chain adoption As a better indicator In the long run, XRP’s “true value”. In terms of real value, if the bank adopts XRP and XRPL completely, the best real value may be generated. Interestingly, the central bank Already eavesdropped.

At the time of writing, XRP is trading at $2.96, up 2.2% over the past 24 hours.

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