Debates surrounding XRP's price often focus on speculation and market cycles, overlooking a critical argument concerning the mechanics of settlement itself. Infrastructure is not designed for excitement but for efficiency, predictability, and scale.
This perspective was highlighted in a recent post by Pumpius, a crypto trader since 2013. Pumpius asserted that XRP functions more effectively at significantly higher prices, suggesting that for maximum efficiency in global settlement, XRP needs to trade at very high values.
The system works better at $10,000 per $XRP than it does at ten dollars.
The mathematics of settlement prove this. https://t.co/40yF7pHcX2
— Pumpius (@pumpius) November 30, 2025
Settlement Mathematics
Pumpius stated, "The system works better at $10,000 per XRP than it does at ten dollars. The mathematics of settlement prove this." This assertion addresses the movement of value across payment rails, distinct from how traders operate on exchanges.
In settlement systems, the value per unit is a significant factor. Each transfer utilizes tokens, and as the token's value increases, fewer units are required to transfer the same notional amount.
A reduction in unit count minimizes friction. It lessens the strain on liquidity pools and decreases slippage risk during large transfers. For systems engineered to move capital at scale, these elements are more critical than retail affordability.
Pumpius views XRP as a utility asset whose performance improves with price appreciation, as a higher value per token concentrates liquidity. This viewpoint challenges the notion that a low XRP price aids adoption, arguing instead that cheap units lead to fragmentation and necessitate more tokens per transfer.
This increased operational complexity is particularly relevant for corridors handling substantial transaction volumes. This perspective aligns with an idea previously articulated by Ripple CTO David Schwartz.
XRP Cannot Remain Cheap
Schwartz has previously explained that XRP cannot remain cheap if it is to effectively fulfill its intended role. Higher prices would enable high-value transfers to be processed more efficiently. To facilitate the movement of trillions of dollars globally, XRP needs to trade at elevated price levels.
Settlement systems rely on liquidity density, which is directly linked to XRP's price. At low prices, transferring trillions would demand a massive movement of tokens, thereby straining order books and liquidity providers. This also heightens exposure to volatility during execution. Conversely, higher prices reverse this dynamic, allowing the same value to be transferred with fewer units and less market disruption.
XRP was conceptualized to serve as the global reserve currency. A low price does not advance this objective; a higher unit value enhances throughput and execution stability, enabling the asset to serve the global market. Schwartz's comments reinforce the foundational principles described by Pumpius.