XRP Price Action: What Will Determine The Token’s Future Value?
Financial expert Shannon Thorp recently entered the discourse surrounding XRP’s price outlook, introducing a unique perspective that challenges prevailing notions about XRP’s value being based on utility.
Thorp emphasized the importance of evaluating XRP’s worth through qualitative analysis rather than the typical quantitative approach. While dissecting a pivotal aspect of XRP’s future valuation, she questioned the role of utility in shaping XRP’s market price.
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
In her analysis, Thorp presented a hypothetical scenario wherein two banks strategize to employ their XRP holdings for transactional purposes. She contended that when one of these banks is to “engage in utility” by utilizing its XRP, it could naturally increase XRP’s price.
Thorp pointed out that this utility-driven increase would also influence the other bank’s liquidity strength (LS), potentially leading to a higher valuation and subsequently affecting the quantity of XRP needed for future transactions.
However, the expert underscored that this growth model relying on the businesses’ efforts may pose potential vulnerabilities.
Moreover, Thorp drew attention to the original intentions of XRP’s founders. She pointed out that they did not envision XRP’s value to be contingent on external contributions or retail investors’ acquisitions. She further disputed the notion of tying XRP’s value to the performance of Bitcoin, asserting that Bitcoin’s inherent lack of utility results in its market volatility.
Further, the financial expert referenced a recent industry report from Ripple, which indicated that most global finance decision-makers anticipated significant crypto-related impacts on business finance in the coming years.
The report revealed that over half of the surveyed professionals either already implemented or planned to introduce crypto solutions in their respective organizations. Thorp theorized that if Ripple’s report referred to entities like the World Bank, IMF, BIS, and the Federal Reserve System, it would suggest a profoundly bullish outlook for XRP.
In particular, she believes XRP value would be tied to the economic requisites of the global financial system put forward by the World Bank, IMF, and other prominent institutions.
Predictable, her view did not sit well with some members of the XRP community. Pro-XRP lawyer Bill Morgan argued that if XRP’s price is tied to the requirements of the global financial system, it inherently must possess properties that address those needs, which is a form of utility on a fundamental global scale.