Crypto pundit UnknowDLT recently addressed a question that often appears in XRP discussions. Why would the asset need a high price at all? His answer focused on institutional behavior. He wrote, “Institutions don’t want millions of units moving markets,” adding, “They want fewer units, less slippage, and predictable liquidity.” That statement cuts directly to how large financial players think. Institutions operate at scale, adhering to strict risk controls. They prioritize execution certainty over short-term price swings. When viewed through that lens, the idea of a permanently cheap settlement asset makes little sense. People ask why XRP would need a high price. Simple answer: institutions don’t want millions of units moving markets. They want fewer units, less slippage, and predictable liquidity. — {x} (@unknowDLT) December 20, 2025 Unit Volume Matters at Scale UnknowDLT’s point centers on mechanics. Low-priced assets require more units to move the same value. More units increase market footprint. That footprint can shift the price during execution. In this case, costs become harder to forecast. Institutions prefer to avoid those conditions. They work with assets that allow them to move large sums with minimal disruption . Fewer units reduce market impact, and predictable liquidity reduces risk. A higher unit price directly supports both goals. This logic applies across financial markets. It becomes even more relevant for a digital asset designed for global payments. XRP’s Design Aligns With This View XRP was built for cross-border settlement. The target users are institutions like banks, payment providers, and liquidity managers. These entities do not operate like traders. They require reliability and efficiency at scale. Ripple CTO David Schwartz has previously made a similar argument about XRP’s long-term role. He has suggested that XRP cannot remain cheap if it is to function efficiently on a global scale. The reasoning follows basic arithmetic. Moving large values with a low-priced token requires excessive volume, and that outcome undermines efficiency. XRP will work better at higher prices because it allows the same value to move with fewer tokens. It simplifies liquidity management across corridors and supports consistent execution. We are on X, follow us to connect with us :- @TimesTabloid1 — TimesTabloid (@TimesTabloid1) June 15, 2025 Institutional Adoption Changes Price Dynamics When institutions adopt an asset, demand becomes structural. Payment flows do not pause, and liquidity must remain available regardless of the market situation. That reality forces markets to adapt. As usage grows, the price often adjusts upward to support smoother settlement. This move is driven by operational necessity, and assets that fail to meet these requirements lose relevance. As more institutions rely on XRP for settlement, liquidity expectations rise. Execution standards tighten, and under those conditions, a higher valuation becomes functional , not speculative. Disclaimer : This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are advised to conduct thorough research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses. Follow us on X , Facebook , Telegram , and Google News The post This Requirement Proves XRP Price Must Rise Massively appeared first on Times Tabloid .
