As the usage of the XRP Ledger (XRPL) continues to gain traction, a prominent advisor in the blockchain industry has predicted a significant surge in the value of XRP.
Kevin Cage, a renowned crypto investor and advisor at Iron Key Capital, echoed the sentiments of industry leaders, countering dissenting voices by asserting that the price of XRP will appreciate in tandem with the increasing adoption of the XRP Ledger.
In recent months, the fast, low-cost, and decentralized XRP Ledger has witnessed substantial adoption from government entities and companies alike. Most notably, the Republic of Palau introduced the Palau Stablecoin (PSC) on the XRP Ledger. Additionally, in July, Ripple joined forces with Catalyze Research to expand the presence of XRPL in South Korea.
Influence of XRPL Growth on XRP Price
Cage, optimistic about the future of XRP, elucidated the reasons behind his bullish expectations for the cryptocurrency that currently occupies the 5th position in the market.
First and foremost, Cage emphasized that XRP serves as the native token of the XRP Ledger (XRPL). Consequently, he underscored the necessity for every account on the XRPL to possess a certain number of XRP to carry out transactions and other activities across the network. “Features like escrow and payment channels are exclusive to XRP,” he asserted.
I’ve seen some comments claiming that the #XRPL will become widely adopted, but that $XRP will NOT appreciate in value with it. That’s silly.
As liquidity, connectivity, & development grow on the XRPL, XRP will likely appreciate too. pic.twitter.com/978JOdy76g
— Kevin Cage (@Kevin_Cage_) August 27, 2023
The advisor went on to explain that heightened adoption of the XRPL will result in increased demand and usage of XRP within the ecosystem, which, in turn, will have a positive impact on its price.
Moreover, Cage indicated that as the number of accounts on the XRP Ledger grows, more XRP tokens will be permanently removed from circulation. This burning of tokens could further contribute to the XRP price appreciation.
Costs of Txns on the XRPL:
– Minimum transaction cost required for a standard txn is 0.00001 XRP (10 drops)
– To protect the XRP Ledger from being disrupted by spam, each txn must destroy a small amount of XRP
– Thus far, 11,541,120.65 XRP have been permanently burned pic.twitter.com/NvxTFjYtQD— Kevin Cage (@Kevin_Cage_) August 27, 2023
It is worth noting that the network presently destroys a specific amount of XRP with each transaction. As Cage updated, approximately 11.5 million XRP have been incinerated through network burns.
Interestingly, a number of analysts anticipate a price rally for XRP in the coming months. Egrag, a renowned chartist, recently predicted a staggering surge of over 63,000% for XRP, projecting the price to reach $333, drawing on historical patterns.
Despite waning investor interest, the increasing adoption of the XRP Ledger presents a promising outlook for XRP’s future value. Kevin Cage maintains an optimistic stance, citing the interdependent relationship between XRPL adoption and XRP price appreciation.
As XRPL continues to witness growth, generating both government and industry support, market experts and enthusiasts eagerly await the potential rally projected for XRP.
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