Why hasn't the price of XRP accurately reflected its usage potential?

XRP: Potential and Challenges

XRP stands out in the cryptocurrency space as a useful asset, supporting billions of USD in cross-border payments. The transaction processing time is only 3 to 5 seconds, and it is used by major banks worldwide. However, the value of XRP has not really exploded yet.

OTC Agreements and Their Impact

One of the main reasons why the utility of XRP has not significantly impacted its price is the primary use through OTC agreements, rather than public exchanges. The trading volume from banks is not reflected in market data, causing the value of XRP to remain stable despite its high utility.

Hidden Road Master Card

The situation may change as Ripple acquires Hidden Road, a major brokerage with a trading volume of over 3 trillion USD per year. If this volume runs through the public XRP Ledger (XRPL), it could increase demand and push prices up. This could be an opportunity for the actual use of XRP to start being reflected on the price chart.

Speculation and ETFs Create Bridges

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 being built. It is expected that there is an 85% chance that the XRP ETF will be approved, potentially attracting large amounts of money from institutions.

Infrastructure and Price Impact

Unlike Bitcoin, which serves as digital gold, XRP operates as a financial rail. The CEO of Teucrium believes that the practical application of XRP could surpass that of Bitcoin. As the cryptocurrency market transitions from a frenzy to utility, XRP will benefit immensely.

Currently, many people are still stuck with the notion of market capitalization, thinking that it limits the price of XRP. But with utility tokens like XRP, the most important thing is the 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 true value of XRP may have been predetermined by financial giants behind closed doors. He believes that institutions view XRP as a critical factor in global finance, potentially valuing it much higher than its current price, which raises the debate on whether the current market value truly reflects its utility.

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