Crypto Analyst Tweets XRPL Tokens and ‘Pessimism’ on XRP Price
- The crypto analyst tweeted about the pessimism surrounding the XRP price.
- According to the Twitter user, the value of XRP depends on the support for XRP-based projects and products.
- More products that are used natively are needed to increase their value.
XRP dUNL node account on Twitter, rippleitin.nz with 19,200 followers tweeted a thread explaining the price of XRP and their perceived “pessimism” around the value of the coin on Feb. 4.
I was sent a DM today and asked about my thoughts on the XRP price and my perceived “pessimism” around the XRP price. It gave me the opportunity to write down my thoughts. Not everyone will agree, but a basic thread of my thoughts, I hope 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 XRPL token. In addition, the only express utility it has over the XRPL is to facilitate transactions either by paying a fee or by paying account collateral/other reserves.
Furthermore, all other tokens issued on XRPL also enjoy all the other features provided by XRP, since it is the one that offers the functionality instead of XRP. count continues,
As an example, the efficiencies of the network are enjoyed by all tokens issued on it, such as $CSC, $SOLO, $xrdoge, $xmeta, etc.
Except for paying fees or collateral, all tokens can be used in the same way as XRP in terms of cross-border transactions and payments, each with 4-second transaction fees. Simultaneously, XRP shares the same rights as its competitors that coexist on the same XRPL network.
The rippleitin.nz account also highlights that NFTs are their own XRPL and have no influence on the value of XRP. Therefore, currently XRP gets its value from buying other assets on the network. However, “pathfinding also offers the opportunity to avoid the use of XRP”, according to the expert.
The analyst then points to projects with released utilities, including XummWallet, which expressly uses the native XRP token in its products. The user then asks his followers: “Are you supporting them by buying their product with your XRP?”
According to rippleitin.nz, the value of XRP depends on fees and speculation until there are XRP-based projects that users support. XRP can still succeed without being a high-value asset, but its value declines as more tokens are issued on XRPL. In order to increase the value of XRP, there needs to be more products and utilities using the native token, which requires market support and demand.
Instead of predicting future prices, the account suggests that users focus on building and supporting projects that use XRP natively to make it a successful competitor to other tokens on XRPL.
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