Ripple CTO Defends XRP Utility Amid Criticism Over Low XRPL Activity

Ripple CTO David Schwartz has fired back at critics who questioned the real-world utility of XRP and the XRP Ledger (XRPL). The backlash began when an X user pointed out that XRP’s market cap had surged to $140 billion, despite XRPL logging just $44,000 in daily volume, according to DeFiLlama. The user claimed this discrepancy revealed XRP’s lack of real value.

Schwartz swiftly debunked the criticism, stating that the volume figure likely reflects only Automated Market Maker (AMM) activity, which he described as “a minuscule fraction” of XRP’s actual use. He emphasized that XRPL offers much more than AMMs, citing its decentralized exchange (DEX) as a core feature. “You know the XRPL is a DEX, right?” Schwartz reminded.

The XRPL boasts a wide range of built-in functionalities that set it apart. These include cross-border and cross-currency payments, tokenization, NFTs, and escrow services. Unlike many blockchains, XRPL doesn’t rely on smart contracts for these features, offering them natively to enhance efficiency and reduce risk.

In October 2022, the XLS-20 standard introduced NFTs to XRPL, enabling features like royalties and anti-spam protections. As of now, over 7.7 million NFTs have been created using the standard. Additionally, in December 2024, Ripple launched its USD-backed stablecoin, RLUSD, on both XRPL and Ethereum. Fully collateralized with U.S. dollar assets and audited monthly, RLUSD aims to bring greater stability to on-chain finance.

Although XRPL does not currently support arbitrary smart contracts—a deliberate move for simplicity and security—Ripple announced plans in 2024 to introduce native smart contract functionality.

Despite ongoing debates, Ripple remains focused on expanding XRP’s real-world applications across payments, tokenization, and DeFi infrastructure.