As the adoption of the XRP Ledger (XRPL) continues to rise, a prominent blockchain project advisor believes XRP’s will surge accordingly, stating his reasons.
Although investor interest in XRP has waned, as evidenced by the high selling pressure on the crypto asset, some industry leaders believe its adoption will only surge from here.
Kevin Cage, a prominent crypto investor and advisor to Iron Key Capital, recently echoed these sentiments. Contrary to some unpopular opinions, Cage submitted that XRP’s price would appreciate as XRP Ledger adoption rises.
He remarked: “I’ve seen some comments claiming that the XRPL will become widely adopted, but that XRP will NOT appreciate in value with it. As liquidity, connectivity, and development grow on the XRPL, XRP will likely appreciate too.”
I’ve seen some comments claiming that the #XRPL will become widely adopted, but that $XRP will NOT appreciate in value with it. That’s silly.
As liquidity, connectivity, & development grow on the XRPL, XRP will likely appreciate too. pic.twitter.com/978JOdy76g
— Kevin Cage (@Kevin_Cage_) August 27, 2023
Notably, the fast, low-cost, and decentralized XRP Ledger has recorded significant adoption from both governments and firms in the past months.
Recall that the Republic of Palau recently launched the Palau Stablecoin (PSC) on the XRP Ledger. Likewise, top firm Catalyze Research teamed up with Ripple in July to expand XRPL’s presence in South Korea.
How XRPL Growth Can Affect XRP Price
Cage, who implied that the XRP Ledger advancement bodes well for XRP, further gave reasons for his bullish expectations on the fifth-largest crypto asset by market cap.
First, the top investor pointed out that XRP is the native token of the XRPL. Accordingly, Cage highlighted that every account on the XRP Ledger needs to hold an amount of XRP to execute transactions or other activities on the network. “Features like escrow and payment channels only work with XRP,” he wrote.
According to him, an increased XRPL adoption would result in a heightened demand and usage of the token within the ecosystem. In turn, increasing use could impact the XRP price positively.
Costs of Txns on the XRPL:
– Minimum transaction cost required for a standard txn is 0.00001 XRP (10 drops)
– To protect the XRP Ledger from being disrupted by spam, each txn must destroy a small amount of XRP
– Thus far, 11,541,120.65 XRP have been permanently burned pic.twitter.com/NvxTFjYtQD— Kevin Cage (@Kevin_Cage_) August 27, 2023
Further, he mentioned that more XRP tokens would be burned as accounts on the XRP Ledger increased. Accordingly, more token burns could help boost the price of XRP.
It bears noting that the network destroyed a certain amount of XRP per transaction. As updated by Cage, 11,541,120 (11.5 million) XRP has been permanently incinerated from network burns.
Notably, several analysts expect XRP’s price to rally in the coming months. In a recent outcome, prominent chartist Egrag predicted XRP to rally by over 63,000% to $333, citing historical patterns.
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