A prominent member of the XRP community, Chad Steingraber, has boldly predicted that XRP could reach a price of $20,000 per token. Steingraber, who is also a game developer and game enthusiast, shared his thoughts on XRP’s potential in a series of tweets.
In his tweets, Steingraber highlighted several factors that he believes could contribute to XRP’s price reaching $20,000. These factors include XRP’s fixed supply of 100 billion tokens, its mildly deflationary mechanism, and the potential for institutional adoption of XRP as a reserve asset.
Steingraber also discussed the role of institutional liquidity providers (ILPs) in facilitating transactions between banks and other financial institutions. He explained that these ILPs would maintain reserves of XRP and bank-issued coins, enabling seamless currency exchanges without exposing parties to direct counterparty risk.
According to Steingraber, the vast majority of XRP’s current circulating supply — approximately 57 billion tokens — is accessible for public trading. However, a portion of this supply has been permanently lost, effectively reducing the tokens in circulation.
Steingraber argues that this reduction, combined with increasing demand, could create conditions conducive to a significant price surge. He also speculates about the possibility of a supply shock resulting from increased institutional demand.
He suggests that financial institutions and liquidity providers could compete to acquire XRP, potentially depleting the public supply available on exchanges within a short period.
Steingraber’s projections rely on several assumptions, including the widespread adoption of XRP as a reserve asset by global banks, which would require significant regulatory clarity and a high degree of trust in the technology.
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