Ripple CTO Responds to XRPL Criticism

Ripple CTO David Schwartz recently addressed criticisms aimed at the XRP Ledger (XRPL), countering claims of XRP lacking real utility.

An X user commented on XRP’s substantial market cap of $140 billion despite seemingly low value production. They referenced data from DeFiLlama, indicating that XRPL recorded only $44,000 in 24-hour volume.

In reply, Schwartz dismissed the argument, suggesting the figure likely included Automated Market Makers (AMMs) on XRPL, an aspect he claimed represented only a small fraction of XRP’s usage.

> “You know the XRPL is a DEX, right?”
> — David “JoelKatz” Schwartz (@JoelKatz) March 22, 2025

The discussion continued when another X user asked about other applications of the XRP Ledger. Schwartz pointed to XRPL’s functionality as a decentralized exchange, emphasizing its capabilities beyond just AMMs.

XRPL Highlights

The XRP Ledger supports numerous functions, including:
– Cross-currency and cross-border payments
– Tokenization
– Decentralized exchange (DEX)
– Escrow functionality
– Embedded compliance
– Token management

Core value propositions include native functionalities like tokens and NFTs, which are seamlessly integrated into the XRPL’s core protocol without the need for smart contracts for their creation or transfer. In October 2022, the XLS-20 standard was introduced for NFTs, offering benefits such as royalty distributions and anti-spam features.

As of now, 7,744,695 NFTs have been minted using the XLS-20 standard. On December 17, 2024, Ripple launched the USD-pegged stablecoin, RLUSD, on both the XRPL and Ethereum, fully backed by U.S. dollar deposits and short-term treasuries, accompanied by monthly third-party attestations.

The XRPL’s base layer currently does not support arbitrary smart contracts, reflecting a deliberate choice to prioritize security and stability. However, plans to launch native smart contracts were announced in September 2024 and are in progress.