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WrathofKanheman shared: A thread on XRP price, without discussing price, because I don’t do that. So why doesn’t XRP go up with all the announced partners? (A long, amateur twitter essay.)
Mostly no one needs enough XRP yet. Ripple’s use, while growing, doesn’t require enough to raise the price yet* & co’s don’t need to buy it because Ripple can source the liquidity for them cheaply & integrate it. Retail (you & I) sets the price right now on exchanges.
That’s ok – Ripple is helping build more liquidity. ODL doesn’t push the price up the way much hope since every buy-side has a sell-side. (Ignoring LOC) But it is powerful long term to get XRP moving in greater volume & corridors, increasing usefulness & desirability.
*Note they are targeting treasuries again along with cross-border remittances & liquidity. This suggests we may see larger “chunked” payments moving forward amidst the multiple liquidity efforts, and this kind of thing gets retail (you & me) excited.
XRP is a long game – capturing as much global value as possible because it is an embedded part of the global financial system. It’s gonna take a minute. (Don’t be fooled – BTC is still a sideshow with little global financial impact beyond melting icecaps.)
And the XRPL must work just fine right now at low prices and volumes in sticky corridors – that’s why it will grow. It’s part of why Ripple is credible to major organizations like the IMF & not dismissed as a cartoon coin Musk can tweet about.
As more embedded value enters the ledger, price should rise & different dynamics of scale come into play. The spread will mean more, demand should increase, and the price finally should rise
I hope you can see why there is no “switch” to throw, only corridors for liquidity to be added. Gradually! – Retail shouldn’t be enough dollars to shock the price up with good volume. If a gov or Amazon, something huge buys in, that could be explosive, but that’s not a switch.
Also, when folk says XRP needs to be at a higher price to work. No, it doesn’t, not yet – it is working just fine right now. Schwartz’s 30 dollars quip illustrated a price point that would be useful for global TXs, an implication, not a strategy; “step 1: make XRP worth 50 dollars/per”.
I think this makes it an immediate price problem since there isn’t much incentive for retail XRP traders and lots of bias against them. Meanwhile, degen holders like you & me just help slowly buying up escrow. Of course, I’m broke, what do I know?
When I see new Ripple users announced, I am excited a new company might be enticed to use an XRP product. When I see ODL users announced, I get excited more XRP will flow. All of this is a long way out from being a new embedded financial rail, but you start somewhere.
This is why Ripple has been generous with RippleX; Forte, Coil, Mintable, etc. – more entry points for XRPL value to embed itself. NFTs, federated sidechains –are all useful but what they do is further embed the ledger as the financial highway to travel on.
The sign I watch for: the growth of other companies, especially Ripple competitors, using the XRPL Companies like Xago – making XRP payments without ODL, or Forte. That feels like a threshold of some kind. What if JP Morgan gave in and tried to corner the XRP market!?
So, I keep watching. Thanks for slogging through. I still refuse to discuss the price.
Hub: XRP price, news, and analysis
