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The XRP ecosystem is full of promise for the crypto market and is attracting the interest of investors and even institutions. With technology reaching out to 61 Japanese banks, XRP seems to have what it takes. Despite this massive adoption, the price of the token remains surprisingly stable. So why isn’t XRP taking off like you’d expect?
Crypto XRP Conundrum: Massive Adoption, Slow Price
Despite increasing adoptionespecially with clear interest 61 Japanese banksthe price of XRP remains curiously stagnant. And this despite the unexpected explosion in the trading volume of this crypto at the beginning of September. Although we would expect an explosion in prices, the explanation could lie in a simple phenomenon: absence of sufficient net flow.
Vandell, co-founder of Black Swan Capitalist, explains that althoughinstitutions use XRP for transactionsthe volume is not yet large enough to increase bids.
In other words, the adoption is there, but demand for liquidity is not yet keeping pace cause a supply shock. A situation that is likely to persist until:
- Demand for XRP as a financial instrument is not growing substantially;
- Total transaction volume remains modest;
- The amount of XRP in circulation remains under control.
A scenario that paradoxically could one day create scarcity and eventually push the price to the highs.
Ripple: ready technology, but the market is still hesitant
Ripple is a dream, especially since thenhas stopped issuing new XRP tokens on stock markets from 2019. A strategy that could in the long term turning XRP into a rare assetthereby increasing its price potential.
According to experts, the real increase factor is found in combination of several elements : wider adoption, increased liquidity and limited supply.
Despite these optimistic indicators, the price of XRP is closed correction phase from Julyt, oscillatory between 52.2 and 56.2 cents. Key levels to watch remain at 60.5, 63 and 66 cents.
If a interruption above these levels, XRP could reach 86 cents or more. But watch out for a possible drop below 50 cents, which could destroy any hope of an increase in the short term.
The most optimistic see XRP at $100, but the road to that seems fraught with pitfalls. Only time will tell at what cost…
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The blockchain and crypto revolution is in full swing! And on the day the effects are felt by the most vulnerable economy in this world, I will say against all hope that I had something to do with it
DISCLAIMER OF LIABILITY
The comments and opinions expressed in this article are solely those of the author and should not be considered investment advice. Before making any investment decision, do your own research.