David Schwartz, the Chief Technology Officer at Ripple, has once again shared his long-term thoughts on the native token of the XRP Ledger, XRP, per a Twitter comment.
It’s not news that the price of XRP has remained flat for several months, with no notable rally. This persisting underperformance of XRP in the overall crypto market has brought about questions like, “why is there no appreciation in XRP’s price?” from crypto Twitter.
In response to this, the Ripple CTO implied that XRP, majorly adopted by Ripple, the San Francisco-based crypto solutions company, has lots of potentials that would eventually make it a big thing in the crypto market.
Generally, David Schwartz answered that he cannot tell exactly what affects the price of cryptocurrencies, citing that “prices tend to move together as people become more or less convinced that crypto will be the next big thing.”
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He wrote,
“I don’t really have a good understanding of what affects the price of cryptocurrencies. But I will tell you what I think is true, though I can’t back it up with facts. It’s just my sense based on data, experience, and maybe just feelings…
“Imagine I worked at Google in 2000 and I was telling you how search was going to be the next big thing and would eventually make billions of dollars of new wealth. You may not believe me. The markets sure didn’t believe that then…
“But maybe I could convince you and you might become a true believer. Maybe you join Google. And you’d be in the right place at the right time. Gradually the markets come to believe it too. And many millionaires were made that way.
“But I could have said the same things at about the same time and been working at ask, ask jeeves, altavista, lycos, and many other companies. They were also in the right place at the right time. That’s where I think crypto is now.”
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Considering the series of unprecedented events that occurred in 2022 like the collapse of Terra (LUNA) and FTX, Schwartz noted that participants are still trying to figure out if crypto is going to be the next big thing. “So prices tend to move together as people become more or less convinced that crypto will be the next big thing. Eventually, as crypto matures, markets will be more ready to figure out which cryptos will be successful,” he added.
… But as I said, this is just my sense. I can't back it up with proof. But I do think it's consistent with the evidence that I do have and it feels about right to me, for what that's worth. You are, of course, free to disagree.
— David "JoelKatz" Schwartz (@JoelKatz) January 1, 2023
XRP’s major setback began in late 2020 when the SEC filed a lawsuit against Ripple, arguing that the token is a security. Interestingly, the asset is expected to have a relief rally as the two-year-long case seems to be going in favor of Ripple. On Tuesday, Santiment selected XRP as the crypto pick for January, making a bullish case for the asset.
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