A Ripple document, highlighted by crypto researcher SMQKE, suggests several factors that could significantly boost XRP’s price. The document points to increased demand and Ripple’s expanding operations as key drivers.
Why XRP’s Price Might Rise
Ripple believes that wider adoption of its payment services will fuel demand for XRP. This is because XRP is central to Ripple’s operations, functioning on the XRP Ledger (XRPL). The document emphasizes that for long-term growth, XRP needs real-world utility, not just speculation. They highlight two key functions:
- Security: XRP provides security on the XRPL.
- Bridge Currency: It acts as a bridge for cross-border payments.
As more people use the XRPL, the demand for XRP—its native token—should increase, potentially driving up its price.
Another factor contributing to a higher price is XRP’s deflationary nature. Small amounts of XRP are “burned” with each transaction, reducing the overall supply. Coupled with high demand, this limited supply could significantly impact the price.
Ripple’s Big Moves
Several recent Ripple developments are also bullish for XRP:
- Banking License Application: Ripple’s application for a national banking license in the US could significantly expand its operations and partnerships with major institutions. This increased integration into traditional finance (TradFi) would likely boost XRP adoption.
- AMINA Bank Partnership: AMINA Bank’s adoption of Ripple’s RLUSD stablecoin is a significant step towards broader banking integration.
- SEC Settlement: Ripple’s decision to drop its appeal against the SEC, and the SEC’s expected reciprocal action, paves the way for potential XRP ETFs. Market expert Nate Geraci believes this will lead to a surge in demand.
The Current Situation
At the time of writing, XRP was trading around $2.93, up over 5% in the last 24 hours. The combination of Ripple’s strategic moves, XRP’s utility, and its deflationary nature creates a positive outlook for its future price.