Researcher Explains How High-Priced XRP Could Bring Significant Benefits to Ripple and the Broader Ecosystem
A recent tweet from digital asset researcher Anderson suggests that a high-priced XRP could have wide-reaching advantages for Ripple and the overall XRP ecosystem.
Anderson outlined several key areas where a surge in XRP’s price could be transformative. First, he noted that a higher price for XRP would attract more attention to the cryptocurrency.
As people discuss its rise, follow headlines and research top-performing assets, more individuals will learn about XRP, potentially leading to increased interest from investors and developers.
Attracting Builders to the XRPL Ecosystem
Furthermore, he argued that a surge in XRP’s value could also draw more developers and builders to the XRP Ledger ecosystem. Anderson points out that higher prices inspire more innovation and participation, which could drive new projects and services on the ledger.
Enhanced Partnership Opportunities for Ripple
Reflecting on the 2017 price surge, Anderson recalls Ripple CEO Brad Garlinghouse’s statement that banks began reaching out to Ripple as the value of XRP exploded. For context, in the 2017/2018 market, XRP soared by over 75,000%.
Anderson believes a similar price jump today could strengthen Ripple’s standing in the eyes of financial institutions, making it easier to secure new partnerships and enhance the company’s credibility.
Moreover, Ripple stands to benefit directly from a higher XRP price due to the substantial amount of XRP it holds. Notably, Ripple holds 42.86 billion in XRP in both escrow and spendable balance. At the current price of XRP, this portfolio is worth over $104.6 billion.
In a scenario where XRP’s value expands to $15, the value of Ripple’s holdings will exceed half a trillion dollars. Essentially, as the price increases, Ripple’s financial position strengthens, allowing the company to expand its influence across various markets.
Wider Business Adoption of XRP
Beyond Ripple’s operations, a higher XRP price could prompt more businesses—both directly and indirectly linked to Ripple—to implement XRP in their services. This wider adoption could further solidify XRP’s position in the market as a utility token for various financial applications.
Improved Liquidity and Efficient Transfers
Meanwhile, one of the most significant advantages of a high-priced XRP is its impact on liquidity. As liquidity increases, XRP becomes more efficient as a bridge asset for global financial transfers. This particularly benefits Ripple’s payment service, On-Demand Liquidity (ODL, now Ripple Payments).
Anderson explained that the spread between buy and sell orders tightens with higher liquidity, making transfers cheaper and more stable.
Furthermore, Anderson compared XRP’s liquidity to currency pairs in Forex markets. In highly liquid markets, conversion rates are better for large and small transactions.
Similarly, with increased liquidity, XRP’s efficiency as a bridge asset would improve, lowering the cost and volatility of all ODL transfers making it an even more attractive solution for cross-border payments.
In conclusion, Anderson emphasizes that a higher-priced XRP could create a ripple effect throughout the crypto and financial industries. It would benefit holders, Ripple, businesses, developers, and users by enhancing liquidity, increasing adoption, and driving new partnerships.
