Understanding XRP’s Stagnant Price Amid Institutional Adoption and Speculation
XRP’s current price struggles to rise despite institutional use, trading at $2.33 with a 20% drop over eight weeks. DigitalG attributes this to Ripple’s two-ledger system, which may mask true market value, while skepticism from community members about retail investor influence remains. Speculation about a merger between ledgers could impact XRP’s price in the future.
The XRP price continues to perplex investors as the currency struggles to gain traction despite increased institutional adoption. Currently, XRP is valued at $2.33, reflecting a decrease of 2.54% in the past day and 20% over the last eight weeks, raising questions about its stagnant performance.
DigitalG, a former fund manager in London, addressed the concerns surrounding XRP’s lack of price movement on X. He attributed this stagnation to Ripple’s unique two-ledger system, comprising both the public XRP Ledger (XRPL) and a private version employed by financial institutions. According to DigitalG, banks may be purchasing significant XRP volumes through the private ledger, which services Central Bank Digital Currencies (CBDCs) and institutional payments while obscuring these transactions from the public market.
This private ledger’s limitations on access and visibility potentially obscure XRP’s real market value, as institutional demand fails to reflect in price on public exchanges. “Some regulators could suggest it is fraudulent to conceal the true price of an asset,” DigitalG cautioned.
A community member expressed skepticism, asserting that XRP’s unimpressive price can be attributed to the substantial holdings of retail investors, claiming XRP “was never really designed for small investors to hold”. This viewer speculated that institutional players might first attempt to drive out retail investors prior to a significant price increase.
In a thought-provoking exchange with this commentator, DigitalG proposed a hypothetical scenario of selling an asset for $2.30 while its actual value might be $15,840, positing that such a discrepancy could be a result of concealed valuations. Furthermore, DigitalG speculated about a potential merger between Ripple’s private ledger and the XRPL on July 14, suggesting this could initiate a substantial market change for XRP.
However, this assertion has created some skepticism within the community, particularly because he did not provide a reputable source to substantiate his claims. When questioned, DigitalG mentioned that the Federal Reserve would implement ISO 20022 on the proposed date, yet the relevance to Ripple and the XRP Ledger remains ambiguous. Community members pointed out this distinction was between Fedwire and Fednow, urging further clarification.
In summary, the dynamics surrounding XRP’s price remain influenced by its unique two-ledger system, comprising both public and private components. Despite institutional adoption, the potential concealment of true market value may impact visibility in public exchanges. As speculation regarding a possible merger of ledgers arises, it remains crucial for investors to differentiate between credible insights and mere conjecture. Continuous community discussion and thorough research are vital for understanding XRP’s future performance.
Original Source: thecryptobasic.com
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