New Zealand-based XRPL node validator rippleitin.nz has taken to Twitter to share his thoughts about the price of XRP.
XRP has underperformed in recent years, being the only major cryptocurrency that failed to reach new all-time highs in the last 2021 bull run. The Ripple lawsuit filed in December 2020 might have contributed partly to this.
Today I was DM'd and asked about my thoughts about the price of XRP and my perceived 'pessimism' around XRP price.— rippleitin.nz (@rippleitinNZ) March 4, 2023
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.
The same could not be said years ago, as XRP was among the four largest cryptocurrencies during the bull run in 2017, rallying thousands of percent to reach all-time highs of $3.18 in January 2018.
XRP is currently the sixth-largest crypto asset, with a market cap of $19.1 billion.
At the time of writing, XRP was trading at $0.3756, up 2.26% in the last 24 hours. The token is significantly down (90.22%) from its all-time high of $3.18 set in January 2018.
"XRP must gain value to be valuable"
According to a thread of tweets, rippleitin.nz believes that, concerning the XRP price, XRP must add value to be "more valuable."
According to the XRPL node validator, the only utility that XRP expressly has on XRPL is to facilitate transactions by payment of a fee or to pay collateral by way of an account or other reserves.
He believes the only way XRP gets its value is through its use to purchase other assets on XRPL, further adding that XRPL can be incredibly successful without XRP ever being a high-value asset.
He claims that all other functionality that XRP has is also enjoyed by all other tokens issued in XRPL, as it is XRPL that offers the functionality, not XRP. As an example, the efficiencies of the network are enjoyed by all tokens issued in it, like CSC, SOLO, xrdoge and xmeta.
Each of them can be used similarly to XRP, except for making payments for fees or collateral. Each can transact in four seconds, be used for payments, and be used for cross-border transactions, he continued.
To increase the value of XRP, he urges people to create and support projects that make use of the native XRP token. He continues by saying that users should ignore the narratives surrounding buybacks, riddles and fancy numbers being thrown around.