Sam Wisdom Raphael
Media personality Crypto Sensei discusses what could allow XRP to surge to unimaginable levels, including $100, $100,000, and $1,000,000 ($1 million).
He spotlighted this in a recent post on X, calling attention to several factors that could help XRP reach greater heights. Interestingly, all these factors focused on greater institutional adoption of XRP and the XRP Ledger (XRPL).
XRP Price Depends on Liquidity
Crypto Sensei first referenced previous comments made by Quincy Jones, a Software Developer at XDC Foundation. Jones noted that he is not certain what price XRP could get to. However, he provided an illustration of what its potential actually is.
XRP Could be at $100, $100,000 or at $1,000,000!!! – Here is how
XRP’s potential for significant price increases in the future is based on its usefulness and utility compared to other cryptocurrencies#XRP #Ripple #Crypto
Post made by @Casvdh pic.twitter.com/9YTjaAQpmA
— CryptoSensei (@Crypt0Senseii) May 26, 2024
According to him, XRP’s value is tied to the liquidity of assets it helps to move around. Jones argued that the more assets or instruments that are issued on the XRPL, including bonds and other tokens, the greater XRP’s value would need to be to actually sufficiently move these assets around.
He stressed that these assets would help bolster XRP’s price because a market participant would need XRP to purchase them. Jones further noted that, in addition to equity, institutions could also issue global debt on the XRPL. Such a move could tremendously impact XRP’s price, given that the world debt currently sits at $305 trillion.
Per Jones, XRP could rise to $100, $100,000, or even $1 million, depending on the liquidity it needs to process. Commenting on Jones’s remarks, Crypto Sensei emphasized that there is a high probability that global institutions could leverage the XRPL or other blockchains for the issuance of assets.
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The Role of Tokenization
One area where this could happen is tokenization. The world is gradually shifting toward the tokenization of real-world assets (RWAs), and blockchain is positioned as a useful tool for this. Recall that Ripple CTO David Schwartz revealed last October that he believes the XRPL can be the favored platform for RWA tokenization.
A month later, Schwartz disclosed that the XRPL is pivoting toward RWA tokenization. Notably, prominent financial giants such as JPMorgan and Bank of America are already looking to capture the growing industry. Ripple is also seeking to make a mark through its recently acquired subsidiary Metaco.
Due to its ability to move value in a fast and cost-effective manner, the XRPL stands out as a top choice for tokenization. Crypto Sensei suggested that this utility boasted by the network could drive top financial institutions such as banks and central banks toward it.
XRP Ledger Boasts Attractive Features
He cited comments from Michael Arrington, founder of TechCrunch. Arrington revealed four years back that his firm was able to move $50 million on the XRPL with a tiny fee of $0.30. Notably, moving such a large amount of money could take a humongous fee on traditional payment systems.
Arrington pointed this out as an impressive feature from the XRPL, questioning why the crypto community antagonizes the network despite its attractive features. He also stressed that, should investors look to redeem their assets, his firm could process such transactions quickly without the conventional wait periods, which typically takes days.
Another point Crypto Sensei spotlighted was the regulatory immaturity in the crypto industry. According to him, this is the single biggest obstacle to institutional adoption. He emphasized how some companies have concerns about setting up shop in the United States due to regulatory uncertainty.
Recall that crypto exchange Bittrex shut down its U.S. operations last year due to regulatory concerns. Additionally, in December 2022, crypto lender and exchange Nexo also announced plans to phase out its operations in the United States.
The SEC has sued multiple firms for dealing in Crypto assets it seems “unregistered securities.” Crypto Sensei believes the concerns that emanate from this trend are stopping institutions from coming in. With clear regulations, most of these financial institutions could easily adopt blockchain solutions for transfer of value, a move that would immensely benefit XRP.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
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