Crypto Analyst Tweets XRPL Tokens & ‘Pessimism’ Around XRP Price
- Crypto analyst tweeted about the pessimism surrounding XRP’s price.
- According to the Twitter user, XRP’s value depends on support for XRP-based projects and products.
- More products using natively are needed to increase their value.
XRP dUNL node account on Twitter, rippleitin.nz with 19.2k followers tweeted a thread explaining the price of XRP and their perceived “pessimism” around the coin’s value on February 4.
Today I was DM’d and asked about my thoughts about the price of XRP and my perceived ‘pessimism’ around XRP price.It gave me an opportunity to write down my thoughts. Not everyone will agree, but a basic thread of my thoughts, hopefully it makes you think too. […]
— rippleitin.nz (@rippleitinNZ) March 4, 2023
The account explained that XRP is a utility token that was developed as the native token of the XRPL. Moreover, the only utility that it expressly has on the XRPL is to facilitate transactions by either payment of a fee or via payment collateral by way of account/other reserves.
Additionally, all other functionality provided by XRP is also enjoyed by all other tokens issued in the XRPL, since it is the one offering the functionality instead of XRP. The account continues,
As an example, the efficiencies of the network are enjoyed by all tokens issued in it, like $CSC, $SOLO, $xrdoge, $xmeta, etc.
Except for paying fees or collateral, all the tokens can be used the same way as XRP in terms of cross-border transactions, and payments, each with 4-second transaction fees. Simultaneously, XRP shares equal rights as its competitors co-existing in the same XRPL network.
Account rippleitin.nz also highlights that NFTs are their own XRPL and have no influence on the XRP value. Hence, XRP currently derives its value from the purchase of other assets on the network. However, “pathfinding also offers the opportunity to avoid using XRP”, according to the expert.
The analyst then points out projects with launched utilities, including XummWallet, which expressly uses the native token XRP in their products. The user then questions their followers, “are you supporting them by buying their product with your XRP?”
As per rippleitin.nz, the value of XRP depends on fees and speculation until there are XRP-based projects that users support. XRP can still be successful without being a high-value asset, but its value decreases as more tokens are issued on the XRPL. To increase the value of XRP, there needs to be more products and utilities that use the native token, which requires support and demand from the market.
Instead of predicting future prices, the account suggests users focus on building and supporting projects that use XRP natively to make it a successful competitor to other tokens on the XRPL.
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