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Ripple CTO David Schwartz addresses claims about XRP pricing, emphasizing its practical utility despite recent market downturns and price fluctuations.
The cryptocurrency market recently experienced significant downturns, with XRP briefly trading below $0.40. At this time, David “JoelKatz” Schwartz, CTO at Ripple and one of the original architects of the XRP ledger, addressed claims about XRP’s pricing, emphasizing the token’s practical value.
Schwartz reacted to an assertion made by a commentator who aimed to mock the Ripple CTO’s 2017 remarks. Notably, Schwartz argued in November 2017 that XRP cannot be dirt cheap due to its utility in payments. He further commented on the statement in April this year.
With XRP now collapsing alongside the rest of the market, community member “Scam Detective” sought to mock this statement. However, in response, Schwartz highlighted that despite the low trading price, the functional cost of using XRP remains unchanged, reinforcing that the token’s utility does not diminish with its market price.
Still costs $1 to buy enough XRP to make a $1 payment.
— David "JoelKatz" Schwartz (@JoelKatz) July 5, 2024
Community sentiment around XRP remains mixed, with some commenters speculating on the timing of its price movements. One individual suggested that the recent price dip coincides with the anniversary of a significant legal ruling by Judge Torres.
Market Downturn Affects Leading Cryptos
XRP’s price has since shown a minor recovery, trading at $0.4042, up from a recent low of $0.3994. This slight rebound occurred despite a broader market decline, which saw the total cryptocurrency capitalization drop to $2.07 trillion, marking an 8.6% daily decrease.
The majority of leading digital assets were significantly affected, with few exceptions showing marginal increases.
Bitcoin, the primary cryptocurrency, experienced one of the most substantial drops, falling below $54,000 for the first time since February. This decline resulted in severe repercussions for many over-leveraged traders, with total liquidations nearing $700 million.
The broader market downturn raised questions about the focus on XRP’s price drop, as other digital assets were similarly impacted. One commenter particularly questioned: “The entire market is down. Why are you just picking on XRP?”
XRP’s Resilience and Utility
Despite the market volatility, XRP’s inherent utility remains a point of confidence among proponents. Rob Cunningham, the host of the Kuwl Show, previously expressed a strong belief in XRP’s resilience, stating that no amount of financial pressure could undermine XRP’s value proposition.
Cunningham detailed how XRP significantly reduces global payment friction, fraud, fees, and foreign exchange costs. He also emphasized the token’s ability to address inefficiencies in nostro/vostro accounts with its rapid 3-5 second settlement times.