The cryptocurrency ecosystem is a very diverse one with thousands of cryptocurrency projects, most of which are designed for certain unique uses. XRP is currently the third largest of these cryptocurrencies by market capitalization and it clearly has the vision to become the world’s leading blockchain-based remittance services provider.
XRP is barely maintaining a critical price at $0.3 and while most supporters believe the cryptocurrency should be worth a lot more, a researcher says it is overpriced even at the current level.
According to the researcher known on Twitter as CryptoKea, XRP should be treated as a means of providing liquidity and not an asset to hold onto. In his opinion, the price at $0.0043 is still enough to settle the entire FX volume of $5.1 trillion.
This gives some credence to the claims that the price of XRP can hardly get past $300, never $1000 let alone $10,000. This makes sense because no user would like to store XRP beyond the time required for it to provide the liquidity needed to facilitate payments and so the price is not very important.
XRP is known for use as a source of liquidity for Ripple’s payment platforms RippleNet and xRapid. With several institutional clients using these platforms, the cryptocurrency is expected to soar in price but that has not been achieved, which makes curious minds ask why. The answer is simply that the asset is not a store of value and that is how it was designed to function.
Many Ripple supporters still believe its price will soar after the SEC declares that it is not a security. The question however is, will XRP really surge after it is cleared by the SEC? Ripple arguably has the highest number of institutional clients if its claims are true, so if the price did not surge before now, it may not make any significant stride beyond where it is now and for good reason.
At the time of writing, XRP is trading at $0.29 in the red zone as are all of the top ten cryptocurrencies. It is consoling to know that even a price of $0.0043 will do no harm to the asset but as has been the trend, the cryptocurrency market is really wild and can do whatever it pleases at any time, so all fingers remain crossed.