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XRP Valuation Debate Centers on Role as Global Liquidity Layer
The debate on XRP's valuation centers around its potential role as a liquidity layer in the global financial system and whether it can sustain a value of just a few dollars.
Key Points of the Debate
- XRP has historically struggled to maintain a price above $4, peaking at $3.65.
- Currently trading under $2 amid a weaker crypto market phase.
- Bullish analysts predict possible returns to the $3 range.
- Jesse from Apex Crypto argues that a $3 valuation is inconsistent with XRP's intended role in cross-border settlements.
- If XRP serves as a primary liquidity source, its valuation should reflect the scale of assets it represents, including fiat currencies, CBDCs, and commodities.
- Theoretical backing by trillions in global assets suggests that a single-digit token price is insufficient.
Institutional Adoption and Market Reality
- Ripple is expanding partnerships with banks and financial institutions, indicating growing traction in traditional finance.
- Despite institutional momentum and investor confidence, XRP's market price remains low.
- XRP investment products are gaining attention, but price action remains limited.
Overall, the discussion highlights the disconnect between XRP's potential use case and its current market valuation.