The native token of the Ripple network, XRP, has for a long time been the token most talked about among both ordinary small investors and large institutional investors. Known for its speed, low fees, and top-level partnerships, XRP has been creating its own strong brand in the crypto world. However, one question remains: Can XRP reasonably get to $20?
This value would be a giant leap compared to its past records and would demand that both market and people adoption had changed drastically. Let’s take a closer look.
Learn about the significance and advantages of XRP
After all, XRP is not that different from other digital currencies. Anyway, it was not created only as a pure decentralized peer-to-peer payment method. The decision was made with the aim of creating a bridge currency that would be as fast and as efficient for as cross-border payment as possible. Ripple, the company behind the development of XRP, has established working relationships with the most eminent banks all over the earth, and this in turn, is making XRP the token with the most use cases in the remittance market anywhere in the world.
This has been the main point in giving XRP the privilege over many other coins from the crypto world. While most coins depend on hype or trading cycles, the appeal of XRP is that it is characterised by being integrated with the existing financial systems over long periods.
What Will Be The Steps For XRP To Hit $20?
For the price of XRP to get to $20, it is necessary for the market capitalization of the coin to increase dramatically. This means not only a return of the retail investor’s interest but also the institutional adoption of the coin at a global level.
Such a move would probably be influenced by the coming together of several factors:
- Significant volume transactions in the real end-to-end market, bank-to-bank, payable would necessitate XRP to be the instrument by which major globally banks and payment providers conduct these cross-border settlements.
- Strict and totally legal circumstances, particularly in the U.S. such markets must be totally benefited by Ripple in terms of law.
- The overall growth of the crypto market would have to support such a trend that Bitcoin and Ethereum would not only set new highs by themselves, but also the rest of the market would rally along with them.
- The mood of investors towards XRP would have to move from cautious optimism to that of being fully convinced, thereby a huge demand wave would be triggered.
It could be said that the above are not unattainable situations, albeit, they are very lofty ones. These would imply radical changes in the world flow of money and in how the traditional finance sector embraces blockchain technology.
Hurdles That Limit XRP Growth
Despite being a well-needed digital asset with a recognizable face, XRP, however, is still on its uphill path to success. The lawsuit with the SEC in the United States that has been dragging on for years led to the creation of a lot of uncertainties and hence, little price growth. Although partial clarity has come to light, many institutions’ caution still prevents them from taking full advantage of XRP.
Moreover, the number of XRP in the total supply is substantial, meaning that it is harder for the token to reach high price targets when compared to those with lower supplies. The tokenomics of XRP actually place a ceiling on how fast its price can rise without the introduction of huge demand.
Furthermore, as a consequence of the unceasing rivalry, XRP has become one of the many projects offering fast and cheap transactions instead of being the only one. Several blockchain projects are available that can provide an effective alternative to utilizing cryptocurrencies for settlement purposes.
Is $20 Possible?
In theory, yes — XRP could get $20 a share. The crypto market is known for its unexpected moves, and extraordinarily high valuations are not unheard of during the height of the bull market.
Nevertheless, with the way things are right now, such a price target is super optimistic. It would mean, among other things, having a bull run going on for several years, all nations having regulatory support for the crypto market, and the demand for this particular product being so huge only because of its utility.
Most of the analysts see $20 as the absolute highest point of the XRP price range that would only be attainable in the case of perfect or nearly perfect circumstances. For the majority of investors, it would be more realistic to set expectations around conservative price targets.
Final Thoughts
XRP has solid fundamentals, no doubt, and it is also a very good candidate for various types of transactions. Besides, it has a very enthusiastic and global community. $20 might be a goal to reach, but the way there is uphill and full of uncertainties. It doesn’t mean though that the coin has no future — actually, it’s quite the opposite. However, investors are still advised to view excitement and strategy as separate things.
Instead of going after the numbers that make the biggest headlines, it is better and more logical to keep an eye on XRP’s progress in the real world, the figures that show how it is being taken up, and how it is incorporated into the constantly changing financial world.
Be sure to always do your own research and control your risk — particularly in such a volatile and speculative market as crypto.
English