David Schwartz Rejects XRP Ledger Ghost Chain Claims as Usage Expands
Ripple CTO Emeritus David Schwartz has pushed back against claims that automated transactions make the XRP Ledger a “ghost chain,” arguing that low transaction costs can encourage a broader range of activity on the network.
The criticism, posted by an X user, argued that bots and automated accounts accounted for much of the XRP Ledger’s transaction activity and claimed that genuine human payments represented less than 1% of transactions recorded over the previous eight years. The post also described scams and automated activity as evidence of limited real-world use.
Schwartz characterized that assessment as unusual and pointed to the XRP Ledger’s low transaction fees as an important factor in how the network is used. As one of the original architects of the XRPL, he argued that inexpensive transactions make the network accessible for both higher-value activity and smaller transactions.
XRP Ledger Activity and Low-Cost Transactions
Schwartz challenged the idea that reducing inexpensive transactions or increasing network fees would necessarily make the XRP Ledger more useful.
His response instead focused on accessibility and the range of activities that can be supported when transaction costs remain low. Under that view, automated transactions should not automatically be treated as evidence that blockchain activity lacks economic value.
The original critic later clarified that the post was intended to draw attention to the composition of XRPL activity. While maintaining concerns about the role of automated accounts, the clarification acknowledged the volume of transactions occurring across the network.
Automated accounts are commonly used by blockchain applications to execute transactions without requiring a person to manually approve every individual action. Such activity can include payments, trading operations and interactions with digital services.
Tokenized Assets Add to XRPL Economic Activity
The XRP Ledger's activity extends beyond conventional payment transactions. The network also supports tokenized assets, stablecoins, decentralized liquidity and institutional decentralized finance.
The network currently has a distributed real-world asset market capitalization of approximately $458.37 million. That figure excludes represented assets and stablecoins that do not generate yields.
Represented real-world assets on the XRPL have reached approximately $4.06 billion in combined value. These figures provide a broader view of the assets represented across the network and indicate that transaction counts alone do not capture every form of economic activity taking place on the ledger.
The distinction is relevant to the debate over whether automated transactions should be considered meaningful network usage. Payment activity represents only one part of the applications operating on XRPL.
AI Agents Drive Automated XRPL Transactions
Artificial intelligence agents have also emerged as another source of automated activity on the XRP Ledger.
Total agentic transactions have surpassed 4.8 million, as AI agents use blockchain-based services and make payments for digital products without requiring direct human approval for each transaction.
These agents can use XRP or Ripple USD to purchase services involving token analysis, crypto intelligence, market research and prediction-market projections.
Such transactions are automated by design. As a result, their classification as bot activity does not necessarily establish that they are economically meaningless. The underlying transactions can correspond to the purchase of actual digital services.
The growth of agentic finance therefore adds another dimension to the discussion surrounding transaction composition on XRPL, particularly as blockchain applications increasingly rely on software-controlled accounts.
Schwartz Reports XRPL Hub Performance
Schwartz also provided an operational update concerning an independently managed XRPL hub.
He reported that the hub had operated reliably apart from two brief incidents involving reduced peer connections and higher latency. According to Schwartz, those events were associated with minor network disruptions rather than problems originating within the XRP Ledger itself.
Overall, Schwartz's response maintains that transaction volume should be considered alongside the broader applications using the network. While automated activity remains a point of criticism, the XRP Ledger's low-cost transactions, tokenized assets and growing use by AI-driven applications provide additional measures of network activity beyond manually initiated payments.
Writer: Marcus RenfieldCrypto Market Analyst & Onchain WriterMarcus Renfield covers cryptocurrency markets with a focus on onchain data, Bitcoin price action, and emerging market narratives. His writing examines how capital flows, network activity, and broader market structure influence short- and medium-term trends.He aims to provide clear, data-informed analysis for readers seeking a deeper understanding of crypto market dynamics.