💢Why the price of XRP is getting higher and higher! ?

When demand for XRP as a bridge currency stabilizes, its volatility will decrease. Once banks add XRP to their balance sheets, market demand for XRP will continue based on its utility, driving the price to stabilize at higher levels.

Why is the XRP price higher? Because high prices can significantly increase network liquidity, XRP can greatly increase its efficiency when processing large transactions. For example, when the XRP price is US$1,000, it only takes 1 million XRP to complete a US$1 billion transfer; if the price is US$1, it takes 1 billion XRP to complete. Higher prices allow the network to expand and meet the needs of institutions for large-amount capital transactions.

Ripple is working hard to provide banks with on-demand liquidity. To achieve this goal, XRP must have a higher market value and price. In short, a substantial increase in price is extremely important to the development of XRP and is the key to it becoming a global liquidity tool.

The role of XRP bridge currency: The bridge currency connects different legal currencies or assets and simplifies international transfers. Ripple wants XRP to become a cross-border real-time settlement tool, which requires stable XRP price and demand.

Price and Liquidity Linkage: Liquidity is at the core of how payment networks process transactions efficiently. The high price of XRP means fewer tokens are needed to complete large transactions, making cross-border payments faster. For example, at $1,000/XRP, only 1 million XRP are needed for a $1 billion transaction; at $1/XRP, 1 billion are needed. Higher prices allow the system to easily handle large-scale capital flows and meet the needs of banks and institutions.

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