Crypto Analysts Explain ‘Real Reasons’ Ripple (XRP) Has Not Risen in Price Against Expectations
Ripple’s XRP price has remained stagnant due to various factors that are not clear to many. The expectation for the price at this time is for it to have spiked above $1 following its win in the long lawsuit against the SEC.
To address this, YouTube channel The Bearable Bull posted a video where crypto analysts discussed some possible ‘real reasons’ why Ripple’s price has remained depressed and not spiked according to expectations.
What you'll learn 👉
Some Challenges Affecting XRP Price Growth
Let’s look at some of the reasons in the following subheadings:
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Show more +Banks’ Slow Reaction to New Technologies
The presenters mentioned that banks have been slow to adopt XRP as a bridge currency since there are no incentives for doing so or any established profitable practices.
Financial institutions also tend to be slow-moving when it comes to trying out new technologies.
Low Institutional Demand:
Although the XRP ecosystem is growing with new DeFi solutions and institutional-focused development, the lack of strong demand for the crypto is also hindering its growth.
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Speculation Over Utility
For a long time, the price of XRP has been moved by speculation rather than its utility. Although speculation has sustained it over the years, it now remains for its utility to make the price begin to spike.
An increase in use and adoption is expected to make the price go up.
Ripple’s Strategy
Ripple is focused on developing tokenization and custody solutions, which could lead to profitability but have not yet impacted XRP’s price positively.
For a long time, Ripple has been selling XRP to fund ecosystem development, which has contributed to price suppression. The strategy has been necessary but controversial within the community.
The potential addressable market for electronic money, including stablecoins, is massive, and XRP could capture a significant share if its use cases expand.
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