XRP May Become Exclusive to 1% of Investors, Expert Warns
XRP holders may experience significant profits if they can endure current economic challenges, according to Edoardo Farina of Alpha Lions Academy.
Farina predicts that only the wealthiest 1% will afford XRP as many retail investors sell their holdings due to rising living costs.
Economic Pressures on Retail Investors
- Global economic conditions have worsened since 2019, with high inflation and rising costs outpacing wage increases.
- Many crypto owners are selling assets, including XRP, to cover basic expenses.
- Record levels of credit card debt and late payments are forcing investors out of the market.
Institutional Buying Amid Retail Selling
- Large financial institutions are purchasing XRP in substantial amounts while retail investors exit.
- The order books for XRP are now five times smaller than during previous upswings, indicating reduced retail activity.
- This shift could alter supply and demand dynamics, potentially increasing prices for remaining holders.
Potential Boost from Central Bank Digital Currencies
- Central bank digital currencies (CBDCs) may positively impact XRP value; European CBDCs could launch by 2025.
- The XRP Ledger might play a key role in the CBDC ecosystem, with successful tests already conducted in Montenegro.
- Similar gains seen with Stellar (XLM) after Ukraine's CBDC plans could occur for XRP if comparable announcements arise.
Future Projections for XRP
- Farina suggests extraordinary returns for those who hold XRP through economic challenges, with potential targets of $100 to $1,000 per token.
- The number of XRP holders is expected to decrease significantly by the time these price points are reached, benefiting long-term holders.