Chad Steingraber Explains Why XRP Lags despite Ripple’s Partnerships

by

Chad Steingraber, an experienced game developer and industry expert, has shared reasons why XRP, the digital currency linked to Ripple Labs Inc, hasn’t met expectations in terms of performance, despite recent alliances and efforts to enhance its payment functionality.

XRP’s Trading Volume Decreases

According to today’s CoinMarketCap update, XRP is currently priced at $0.4924, marking a 1.7% rise in value over the past 24 hours. The total market value of XRP is now $27 billion. However, the trading volume has decreased by 34.9%, amounting to $1.5 billion, suggesting that investor enthusiasm may be waning.

Based on Steingraber’s perspective, a significant factor contributing to XRP‘s lackluster performance is its predominant trading occurrence off public exchanges like Binance Holdings Ltd and Kraken, instead being transacted Over-The-Counter (OTC).

“The reasons why today’s partnerships and ODL/Payments utilization of #XRP aren’t impacting its price are explained below.”
The majority of #XRP transactions occurring around the world right now can be characterized as over-the-counter (OTC) trades, which avoid interaction with publicly accessible crypto exchanges. It is these exchanges that currently establish the market price for #XRP.
Traditional…
— Chad Steingraber (@ChadSteingraber) April 17, 2024

Steingraber pointed out that the cost of XRP is influenced by market forces on exchanges at present. However, traditional financial entities like Bank of America Corp (NYSE: BAC) are unable to utilize this asset due to regulatory constraints. Consequently, they resort to Over-the-Counter (OTC) markets for trading XRP instead.

Despite expressing caution, he predicted that the price of XRP would rise significantly as business demand for it grows. In this imagined situation, companies would actively seek out and purchase more XRP from various sources, such as public markets, spurred on by increased demand.

Steingraber highlighted two important elements that can impact XRP‘s price: the usefulness of XRP and investment via Exchange-Traded Funds (ETF). He explained that these external investments can decrease the amount of XRP in circulation, thereby affecting its value.

Steingraber found that a significant increase in XRP‘s price would occur once the entire supply available to the public has been used up, caused by heightened demand from businesses and traditional financial institutions.

What Makes Ripple Labs-backed XRP Stand Out

XRP serves as a connecting currency in financial transactions, enabling institutions to exchange crypto and traditional currencies more economically. Ripple Labs emphasizes XRP‘s key features: lower transaction fees and swift money transfers.

The cost for a standard transaction on the network is as low as 0.00002 XRP. An impressive aspect of XRP is its ability to handle up to 1,500 transactions every second, making it highly scalable. Furthermore, XRP boasts eco-friendly qualities, ensuring it operates carbon-neutrally and consumes minimal energy.

In good news for XRP, Ripple CEO Brad Garlinghouse expressed confidence about the prospect of an XRP exchange-traded fund (ETF) coming to market. He pointed to the SEC’s recent green light for spot Bitcoin ETFs as evidence that more such investment vehicles could be approved.

In the latest development of Ripple’s legal clash with the SEC, their lawyers have brought up the similarities to the Govil case, as reported earlier by Coinspeaker. If Ripple can prove that no institutional investor experienced financial harm during XRP sales via their On-Demand Liquidity (ODL) platform, experts believe this could strengthen Ripple’s defense in light of the Second Circuit’s ruling on the Govil case.

Read More

2024-04-17 20:00