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HomeCrypto NewsMarketXRP Road to $20,000, Expert Mentions Possible Catalysts That Might Turn This Dream into Reality

XRP Road to $20,000, Expert Mentions Possible Catalysts That Might Turn This Dream into Reality

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An XRP community pundit makes a case for an XRP price rally to an ambitious five-digit figure, citing possible catalysts.

Chad Steingraber, a game developer and prominent voice in the XRP community, outlined a vision for XRP’s potential to reach $20,000 per token. In his commentary, Steingraber highlighted several factors he believes could drive this dramatic price increase.

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XRP Deflationary Supply

Steingraber called attention to XRP’s capped supply of 100 billion tokens and its mildly deflationary design. For context, the XRP Ledger permanently burns a small amount of XRP with each transaction, steadily reducing the total supply, albeit at a slow rate.

He noted that much of the current circulating supply—now around 57 billion tokens—is available for public trading, but some of it has been permanently lost, further limiting accessibility. This shrinking supply, in addition to increased demand, could create conditions for a price surge, he argued.  

XRP Institutional Adoption and Private Ledgers  

One of Steingraber’s central claims is that XRP will become a reserve asset for banks, akin to gold. He suggested that financial institutions like Bank of America and JPMorgan could issue private digital currencies, such as BOAcoin or JPMorganCoin, on private XRP Ledgers. 

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These coins, possibly backed by XRP, would enable banks to conduct internal and cross-border transactions securely and privately, he said. According to Steingraber, this setup would ensure banks rely heavily on XRP while keeping transactions off public ledgers, creating a demand spike.  

Steingraber also discussed the potential role of institutional liquidity providers (ILPs), which he described as intermediaries facilitating transactions between banks. He claimed these ILPs would hold large reserves of XRP and various bank-issued coins, enabling seamless exchanges without exposing counterparties to risk. 

For instance, if Bank of America needs to transfer funds to JPMorgan, XRP would act as the intermediary currency, facilitating the transfer through ILPs.  

Possible Supply Shock  

Interestingly, Steingraber warned that banks could eventually deplete the public supply of XRP. He speculated that financial institutions and ILPs might engage in a digital “arms race” to acquire XRP, potentially leading to a frenzy of institutional buying. 

According to him, this could wipe out the public supply on exchanges within hours, leaving retail investors sidelined as prices soar.    

Expanding his analysis, Steingraber pointed to the global financial system’s vast size, estimating the total U.S. dollar money supply at $40 trillion. Adding the global banking sector and derivatives market, he argued that demand for XRP could grow exponentially. 

He suggested that the public supply might shrink to as low as 21 million tokens—similar to Bitcoin’s hard cap—further boosting its value. At press time, XRP trades for $2.35, needing an 850,963% increase to reach $20,000. 

While Steingraber’s arguments are thought-provoking, they rest on several assumptions that warrant scrutiny. For one, banks adopting XRP as a reserve asset on a global scale would require widespread regulatory clarity and institutional trust in the technology.

DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.

Author

Sam Wisdom Raphael
Sam Wisdom Raphael
Sam Wisdom Raphael is a seasoned crypto news writer and journalist with 5 years of experience covering blockchain, DeFi, and crypto developments. Sam's active presence in the crypto community complements his deep understanding of the crypto space, allowing him to craft comprehensible price analysis reports and tackle technical blockchain concepts.

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