Reminder: Why $XRP & XLM Can’t Function Efficiently at Low Prices
At Low Prices (e.g., $0.05):
More XRP/XLM are required to equal $1.
Supply across the network is limited.
Example: A $2.5B transfer with XRP at $0.05 would consume over 50% of total supply (even before considering XRP held in escrow).
Clearly, this setup is not scalable for global use.
At Higher Prices (e.g., $30):
Liquidity and supply flexibility increase dramatically.
Scaling the same transfers: A $60B transaction with XRP or XLM at $30 each would only use about 2% of total supply.
This demonstrates far greater efficiency at higher valuations.
Key Takeaway:
The efficiency of XRP and XLM isn’t just about speed—it’s also tied directly to price.
The IMF has previously discussed how XRP & XLM could function as stable assets (not stablecoins, but reliable value carriers for banking and cross-border settlement).
For that role, it doesn’t make sense for these assets to remain at very low prices.
👀 Efficiency requires higher valuations.
