Could XRP Rally to $20,000? Pundit Makes Case with Interesting Insights

A prominent XRP community member recently shared some interesting insights as he sought to make a case for an XRP rally to $20,000.

In the crypto scene, where wild speculations often dominate discussions, Chad Steingraber, the Creative Director at Ghostpunch Games, has presented an ambitious case for the possibility of XRP reaching an astounding $20,000 price point. 

While it is important to note that these are mere speculations and there is no guarantee that such events will occur, his insights offer intriguing food for thought.

If you haven’t read my theory from the future.. I think you should give it a thought. ? https://t.co/d7ysY5euXc

— Chad Steingraber (@ChadSteingraber) July 25, 2023

Principles Driving Value

Steingraber starts by laying out three fundamental principles that determine the value of an asset. First and foremost, there’s the classic economic principle of “Supply and Demand.” In the case of XRP, with a limited supply of less than 100 billion coins, scarcity could significantly drive up prices if the demand surges. 

Secondly, using a real estate analogy, he delves into the “Market Appreciation” concept. When assets appreciate in value over time, the overall market value increases, even if the actual money injection remains limited.

Lastly, he calls attention to the notion of “Limited Assets,” highlighting the value attributed to assets like the Mona Lisa due to their uniqueness and societal importance.

XRP’s Unique Properties

Transitioning to the specifics of XRP, Steingraber emphasizes its limited supply and the deflationary mechanism caused by burning small portions of XRP during ledger transactions. He underscores the importance of the circulating supply, which heavily influences the asset’s price.

At present, XRP’s market cap is around $37.7 billion. This value was $18 billion at the time. However, this number doesn’t represent the actual amount of money invested in XRP. However, it merely reflects the current value people are willing to pay. 

Steingraber touches on Ripple’s On Demand Liquidity (ODL) service, explaining that it is designed for small banks and money transmitters, not major institutions like Bank of America, Chase, or Wells Fargo. These major players are unlikely to use ODL for their massive global transfers, emphasizing the need for privacy.

XRP: The Road to $20,000

The Creative Director contends that banks require privacy for internal ledger transactions, and XRP was never intended for public retail trading. Instead, he speculates that banks will create private XRP ledgers and issue their derivatives, similar to how central banks hold gold as a backing asset.

Steingraber theorizes that XRP could become a reserve currency asset, with banks creating their derivatives on the XRP Ledger. For instance, Bank of America could issue “BOAcoin” on the XRPL, using XRP as a reserve asset to back it up.

Internal transactions among banks and Institutional Grade Liquidity Providers (IGLPs) would rely on XRP to facilitate the exchanges between these private coins. According to him, this case of private mass adoption would catalyze the $20,000 goal.

In this scenario, XRP’s value would be tied to its pivotal role in enabling cross-border transfers for major financial institutions, making it an indispensable and highly sought-after asset. Major financial players, including large banking corporations, could leverage the asset.

It is crucial to emphasize that these are speculative ideas and not guaranteed outcomes. At its current price of $0.7155, XRP would need to skyrocket by an astronomical 2,795,148% to hit $20,000. This would mark an unprecedented appreciation rate.

However, Steingraber’s insights are an intriguing exploration of how certain factors and mechanisms within the XRP ecosystem could influence its price trajectory.