XRP: Potential and Challenges
XRP stands out in the cryptocurrency space as a useful asset, supporting billions of USD in cross-border payments. Transaction processing times range from 3 to 5 seconds, and it is used by major banks worldwide. However, the value of XRP has yet to truly explode.
OTC Agreements and Their Impact
One of the main reasons XRP's utility has not significantly impacted its price is the predominant use of OTC agreements, rather than public exchanges. Trading volumes from banks do not show up in market data, keeping the value of XRP stable despite its high utility.
The Hidden Road Ace
The situation could change as Ripple acquires Hidden Road, a major brokerage with over $3 trillion in transactions annually. If this volume flows through the public XRP ledger (XRPL), it could increase demand and drive prices up. This may be an opportunity for XRP's practical use to start reflecting in the price chart.
Speculation and ETF Bridging
Traders are paying attention to discussions surrounding a potential XRP ETF and Ripple's expanding CBDC network. Speculation serves as a bridge between utility and price, which is currently under construction. There is an 85% likelihood that the XRP ETF will be approved, potentially attracting significant capital from institutions.
Infrastructure and Price Influence
Unlike Bitcoin, which acts as digital gold, XRP functions as financial rails. The CEO of Teucrium believes that the practical application of XRP could surpass Bitcoin. As the cryptocurrency market shifts from a frenzy to utility, XRP will benefit greatly.
Currently, many remain stuck with the notion of market capitalization, thinking it limits XRP's price. But for utility tokens like XRP, the most important factor is availability. If XRP becomes essential for global payments, price growth is inevitable.
Real Value and Controversy
According to Versan Aljarrah, CEO of Black Swan Capitalist, the real value of XRP may have been predetermined by financial giants behind closed doors. He believes that institutions see XRP as a crucial factor in global finance and could price it much higher than its current value, sparking the debate about whether the current market value truly reflects its utility.
Source: https://tintucbitcoin.com/vi-sao-gia-xrp-chua-phan-anh-dung-tiem-nang-su-dung/
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