thecryptobasic.com
Vandell Aljarrah, a finance consultant and co-founder of Black Swan Capitalist, has asserted that when institutional demand for $XRP arrives, it will endure and bolster $XRP’s value.
Aljarrah expressed this sentiment in a recent post on X. The remark came as a reply to community member Chad Steingraber’s commentary on the reason $XRP sees minimal impact from cross-border payment utilities.
$XRP Unimpacted by Present Utilities
Steingraber argued that $XRP’s market value sees minimal impact from Ripple’s cross-border payment solution because of the medium through which the transactions occur.
Specifically, he noted that the transactions are essentially over-the-counter (OTC) trading, unlike the public exchange trading of $XRP. Steingraber emphasized that cryptocurrency prices are heavily influenced by trading on public exchanges.
Moreover, the community pundit elaborated that traditional financial institutions, like Bank of America, are unlikely to source $XRP through these platforms due to regulatory constraints. Essentially, while $XRP sees utility behind the scenes, its impact on public exchange prices is limited.
How $XRP Price May Get Impact
However, Steingraber asserted that this apparent disconnect will be reconciled as business dependencies on $XRP escalate.
He suggested that as companies rely more heavily on $XRP for cross-border settlements, the demand for $XRP will surge. The pundit foresees a scenario where businesses will move to acquire $XRP from all available sources, including public exchanges.
Essentially, the commentator argued that $XRP’s price appreciation will hinge on the depletion of available supply through utility-driven demand and investment inflows from vehicles like exchange-traded funds (ETFs)
“Astronomical prices will come from a complete depletion of the public supply,” Steingraber submitted.
Aljarrah concurred with this perspective, asserting that once demand surges, it will remain. Furthermore, he proposed that institutional adoption will result in a permanent retention of $XRP.
In his words: “Once institutions acquire $XRP, they will never trade it. [They will] only hold and use it, and this will continue over time.”
Exactly. That's why once demand increases, it will never decrease, and once institutions acquire $XRP, they will never trade it, only hold it and use it and this will continue over time.
— Vandell | Black Swan Capitalist (@vandell33) April 17, 2024
X user Michael Mann sought Aljarrah’s opinion on the timeline for the expected institutional adoption. While Aljarrah has yet to respond at press time, Mann expressed a sentiment that it may surface by 2026.
These conversations have emerged amid $XRP’s enduring underperformance in the bull market despite its utility offering to the payment landscape. At press time, $XRP trades at $0.498, down 5% over the past year.