Since the recent Ripple ruling in mid-July, the native cryptocurrency XRP has garnered attention from investors and market analysts. With more than 50% gains over the last 15 days and major crypto exchanges like Coinbase relisting the XRP token, trading volumes and liquidity have received a significant boost.
Amidst this excitement, Chad Steingraber, the Creative Director at Ghostpunch Games, has made a bold prediction for the potential of XRP to reach a staggering price of $20,000. While this price target may seem far-fetched considering the current trading price of just a quarter to a Dollar, Steingraber presents an interesting argument to support his claim.
Steingraber points to three core principles that govern the valuation of an asset. The first principle is “Supply and Demand.” With XRP’s limited supply of fewer than 100 billion coins, scarcity could drive prices up significantly if demand surges.
The second principle Steingraber explores is “Market Appreciation.” Just as real estate assets appreciate in value over time, the overall market value of assets increases, even if the actual money injection remains constrained.
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Lastly, Steingraber highlights the concept of “Limited Assets.” Assets like the Mona Lisa hold immense value due to their uniqueness and societal significance. By drawing attention to these principles, Steingraber suggests that XRP’s limited supply and deflationary mechanism, which burns small portions of the token during transactions, could influence its price.
Further supporting his prediction, Steingraber discusses Ripple’s On-Demand Liquidity (ODL) solution. While Ripple’s ODL service primarily targets small banks and money transmitters, Steingraber argues that major institutions like Bank of America, Chase, or Wells Fargo require more privacy for their large transfers.
According to Steingraber, banks need privacy for their internal ledger transactions, and XRP was never designed for public retail trading. Instead, he envisions banks creating private XRP ledgers and issuing their derivatives, similar to how central banks hold gold as a backing asset.
In this scenario, XRP could become a reserve currency asset, with banks creating their derivatives on the XRP Ledger. For example, Bank of America could issue “BOAcoin” on the XRPL, using XRP as a reserve asset to back it up. Internal transactions between banks and Institutional Grade Liquidity Providers (IGLPs) would rely on XRP to facilitate exchanges between these private coins. This private mass adoption of XRP could potentially help achieve the $20,000 price target.
Furthermore, XRP’s value would be linked to its crucial role in enabling cross-border transfers for major financial institutions, making it an essential and highly sought-after asset. Large banking corporations and other financial players could leverage this asset for their operations.
While Steingraber’s predictions and insights are interesting to consider, it is crucial to remember that these are speculative claims and there is no guarantee that they will come to fruition. As with any investment, it is important for individuals to conduct their own research and exercise caution.
In conclusion, the recent resurgence of interest in XRP following the Ripple ruling has led to various predictions and speculations about its future price. Chad Steingraber’s bold prediction of XRP reaching $20,000 is based on principles such as supply and demand, market appreciation, and the potential for XRP to become a reserve currency asset. However, it is important to approach these predictions with skepticism and conduct thorough research before making any investment decisions.
