Former Ripple (@Ripple) chief technology officer David Schwartz (@JoelKatz) has said that using $XRP to pay transaction fees on the XRP Ledger (XRPL) is unlikely to be a significant driver of the token's price. He argues that broader adoption of the network is a more credible source of value for XRP.
The comments come as XRP trades near multi-week lows. XRP traded near $1.1 on 9 November after closing at a 30-day low, with a weekly drop of about 12%, according to Altcoin Buzz.
Schwartz Plays Down Gas Fees as a Price Catalyst
Schwartz, a co-creator of the XRP Ledger, addressed the issue on X, countering the idea that XRP's role as the ledger's native gas token significantly affects its value. In his words, he does not think anybody who knows anything has said gas use will be a major driver of the price, as reported by U.Today.
He has also said the network was not designed with the aim of lifting XRP's price. Instead, Cryptonews reported that the original goal was to build a fast and cheap payment system with a native digital asset and a decentralised exchange feature.
The remarks follow an earlier debate over XRPL fees. In October, Schwartz pushed back on community proposals to raise base fees to accelerate XRP burn, arguing that fees act as friction for users, Finbold reported.
Adoption, Autobridging and Counterparty-Free Design
Schwartz instead points to XRP's structural position within the ledger. He highlights its lack of counterparty risk, its jurisdictionless nature and its role in autobridging, according to U.Today. Autobridging is a feature of the XRPL decentralised exchange that automatically routes trades through XRP, which can provide deep liquidity between asset pairs and reduce slippage, as CoinTurk explained.
In earlier remarks, Schwartz described XRP as the only counterparty-free asset any account on the ledger can accept, and said users need XRP to pay fees, TokenPost reported. His broader thesis is that low fees and reliable operation make XRPL a good place to move and hold value, and that XRP captures part of that value.
Schwartz has also argued it would be hard to imagine XRPL succeeding at scale without XRP capturing a significant share of the value created, per Cryptonews. He has separately acknowledged that his own influence on the XRP price is minimal, U.Today noted.
Market Context
XRP's price has been under pressure for much of the year. Monthly price data from Digrin show the token trading well below its levels of late 2025. Data from CoinDesk showed XRP at $1.11 on 9 November, with 24-hour trading volume of $1.60 billion.
Schwartz's argument ties XRP's long-term value to how heavily the ledger is used, rather than to fee mechanics or speculation alone. Whether adoption of XRPL grows enough to test that thesis remains an open question for holders.
Sources:
U.Today: Ripple's Schwartz Debunks XRP Price Myth
CoinTurk: David Schwartz says XRP gas fees have little impact on token price
Altcoin Buzz: XRP Closes at a 30-Day Low