While Ripple steadily grows its footprint throughout the financial industry, XRP has failed to achieve the price levels that certain investors anticipate from that expansion.
Highlighting this contradiction, crypto analyst Steph Is Crypto asked why XRP is not already valued at hundreds of dollars given that Ripple keeps forming partnerships with banks.
His inquiry centers on how Ripple’s institutional reach connects to the market value of XRP. In reply, multiple responses pushed back against the notion that mere bank collaborations are sufficient to push XRP toward drastically elevated prices.
XRP Usage Could Matter More Than Ripple Partnerships
According to DM Benders, XRP requires genuine adoption to spark the demand necessary for a much higher price tag. He noted that banks have not yet generated sufficient direct usage of XRP to meet the lofty forecasts surrounding the token.
“It’s not being used yet. What’s wrong with you folks? It’s pretty simple. XRP is not going to move when you want it to based on news. It’s going to move based on its usage/utility,” DM Benders wrote.
This viewpoint draws a line between Ripple’s corporate growth and the market demand for XRP. Ripple has the ability to onboard financial institutions onto its network without those companies generating substantial demand for the digital asset.
This distinction is crucial because a financial institution can utilize Ripple’s tech stack without holding XRP for prolonged periods. Consequently, investors must evaluate actual XRP adoption side by side with Ripple’s expanding institutional ties.
Commenters Point To XRP Utilization And Supply
Andrew Sandler highlighted multiple elements that might account for where XRP is currently priced. He questioned the exact number of banks that actively employ XRP technology instead of Ripple’s broader suite of services. Furthermore, he pointed to regulatory certainty and Ripple’s recurring monthly escrow releases, observing that these consistent unlocks may constrain upward price movement for XRP.
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Banks May Not Hold XRP Long Term
Another user, Rara, similarly questioned the premise that a higher volume of bank partnerships inherently triggers massive demand for XRP. The commenter emphasized that banks are capable of utilizing XRP as a bridge asset without hoarding significant quantities of the cryptocurrency on their balance sheets.
“Banks using RippleNet’s ODL service doesn’t mean they’re gonna stockpile XRP,” Rara said.
This remark underscores how XRP functions during a transaction. If financial institutions buy XRP to execute a transfer and promptly convert it into another currency, that process generates transaction volume rather than the sustained holding demand anticipated by certain members of the XRP community.
Ultimately, Steph Is Crypto’s inquiry highlights a critical division. Ripple is free to grow its banking alliances while XRP obeys its own unique supply and demand forces. Whether the asset climbs toward substantially higher valuations will rely on the depth of institutional adoption and how that utility translates into enduring market demand.