Financial Expert Says Utility Will Not Be Driving Factor to XRP Price
In a recent tweet, financial expert Shannon Thorp weighed in on the ongoing discussions surrounding XRP’s price prediction.
Thorp stressed the need to assess XRP’s value qualitatively rather than quantitatively. While pointing out a critical factor in XRP’s future valuation, she challenged the concept of utility and its role in driving the price of XRP.
Continuation of https://t.co/1BD2B2cw6S
There has been some chatter on X as it relates to the price prediction I made and its timeframe. In a later post I will address the timeframe in greater detail. Let’s take a look at the price qualitatively rather than a quantitative view.…
— Shannon Thorp (@thorpshannon87) September 6, 2023
Utility Relying on Business Effort
In the analysis, Thorp introduced a hypothetical scenario involving two banks planning to utilize their own XRP for payment purposes. According to her, when one of these banks uses its XRP, it engages in “utility,” which many believe would naturally lead to an increase in XRP’s price.
The financial expert noted that the utility affects the other bank’s Liquidity Strength (LS). She also mentioned it would result in a higher evaluation and subsequently impact the amount of XRP required for transactions.
Thorp suggested that while this growth model may imply a steady upward trajectory for XRP, it heavily relies on the efforts of businesses for sustained growth.
Meanwhile, Thorp highlighted that XRP’s founders did not intend its value to be solely driven by external efforts or everyday people buying XRP. Moreover, she dismissed the notion that XRP’s value should be linked to Bitcoin’s performance.
According to her, Bitcoin lacks utility and primarily relies on speculative value. She argued that Bitcoin’s price is volatile because its support comes primarily from retail investors.
The Factor to Push XRP
Furthermore, Thorp drew attention to a page on the US Federal Reserve website highlighting prominent financial organizations. She suggested that Ripple, the payment firm associated with XRP, has engaged with many of the highlighted entities to promote financial stability on a global scale.
Thorp argued that for XRP to fulfill its intended purpose, its price would be influenced not by speculation or meme token status. Instead, its value would come from the influential financial groups representing the global economy.
Moreover, the financial expert bolstered her claim by quoting a recent industry report from Ripple. The report highlighted that most global finance decision-makers believed crypto would significantly impact business finance in the coming years.
Also, Thorp quoted the report as mentioning that over half of the respondents in a survey of 300 professionals reported that their firms are either implementing or planning to implement a crypto solution.
Thorp theorized that if Ripple referred to entities like the World Bank, IMF, BIS, and the Federal Reserve System in the report, it would mean a significant bullish outlook for XRP.
In her words:
“The use case for XRP will continue to grow as it will represent economic freedom and stability across the globe.”
Ultimately, Thorp’s opinions centered on the idea that XRP’s price would not rely on external efforts and that utility would not be the sole driver of its value. Moreover, she claimed that XRP’s fate would be independent of Bitcoin’s performance. In her view, XRP’s value would be closely tied to the economic requirements of the world’s financial system.