XRPשורט
XRP Even Chat GPT Knows XRP Is About To Get Revalued .10 Cents
MAKE SURE YOU READ TO THE END THE END IS THE BEST!
If XRP is only being used as a settlement currency for bank then why would there be these wild price predictions when the market cap is already $150 billion?
ChatGPT said:
Great question! The wild price predictions for XRP often stem from different interpretations of its utility, demand, and supply dynamics. Let's break it down:
Market Cap Misconceptions
XRP's market cap is often misunderstood. Market cap = price × circulating supply, but price movements depend more on liquidity and demand rather than market cap alone.
Many price predictions assume increased utility will drive higher demand, but market cap alone doesn’t dictate price ceilings.
Bank Adoption and Utility Argument
If XRP is mainly used as a bridge currency for cross-border settlements, its price would be driven by transaction volume rather than speculation.
However, banks and financial institutions don’t need to hold XRP for long periods—it's typically used in seconds. This limits the need for large amounts of XRP to be held, which could cap price growth.
Speculative vs. Real Utility
Many wild price predictions ($100+, $500+, etc.) are fueled by speculation rather than actual use cases.
In reality, even if XRP were widely used for settlement, price appreciation would depend on sustained demand, not just temporary spikes.
Liquidity and Scarcity Factors
Some argue that as more institutions use XRP, liquidity will tighten, potentially driving price increases.
However, the XRP supply is large (100 billion total, with over 50 billion circulating), and large holders (like Ripple itself) could introduce selling pressure.
Regulatory and Adoption Uncertainty
XRP's legal battles and regulatory clarity impact its adoption. A major victory (like its partial win against the SEC) can fuel hype-driven price predictions.
True institutional adoption is still limited, and even if banks use it, they may prefer private ledgers over using the open market.
Bottom Line
XRP has real utility in cross-border payments, but its role as a settlement currency doesn’t necessarily justify extreme price predictions. The market cap is already large, and unless significant new demand arises, a massive price surge would require much broader institutional adoption beyond just bank settlements.
You said:
So currently the valuation of XRP is already way higher than many banks and companies will the price eventually come down to a more realistic price to value in the future?
ChatGPT said:
That’s a solid perspective. XRP’s current valuation is indeed higher than many traditional banks and financial institutions, which raises the question of sustainability. Whether its price comes down to a more “realistic” value depends on a few key factors:
1. Utility vs. Speculation
A significant portion of XRP’s price is driven by speculation, not just utility. Many holders are retail investors betting on future institutional adoption.
If speculation cools down and usage remains limited to settlement purposes (where XRP is only held for seconds), the price could decline over time to reflect actual utility.
2. Market Cycles & Sentiment
Crypto markets go through bull and bear cycles. In bear markets, assets that lack strong organic demand (beyond speculation) tend to lose value.
If hype around XRP fades and institutions don’t adopt it at scale, its price may correct to better reflect real-world usage.
3. Inflation & Supply Dynamics
XRP has a fixed max supply of 100 billion, but a large portion is still held by Ripple and periodically released.
If Ripple continues selling XRP from its reserves, it could create sell pressure, gradually pushing prices down.
However, XRP is also deflationary, as transaction fees burn small amounts over time—but this effect is minimal in the grand scheme.
4. Institutional Adoption
If banks and financial institutions fully integrate XRP and hold it as a reserve asset, it could justify a high valuation.
But most banks prefer private ledgers and stablecoins over holding volatile assets like XRP, limiting potential demand.
5. Competitive Landscape
XRP was originally designed for fast, cheap payments, but other solutions like stablecoins (USDC, USDT) and CBDCs are gaining traction.
If banks prefer these alternatives, XRP’s price could drop to align with lower demand.
Realistic Price Outlook?
If XRP remains primarily a settlement tool, a valuation correction could bring it closer to its real utility value (which may be much lower than today’s levels).
However, if a new narrative or significant adoption shift occurs, speculative cycles could keep it elevated.
Long-term, unless real demand matches its high valuation, the price may deflate to more sustainable levels.
You said:
So in your opinion the value of XRP currently is way higher than it should be compared to its usage
ChatGPT said:
Yes, based on its current real-world usage, XRP’s valuation appears to be significantly higher than what its actual adoption justifies.
Why?
Usage Doesn’t Match Market Cap
XRP is mainly used for cross-border settlements, but banks don’t need to hold large amounts for long.
Most transactions are instant, meaning there’s no long-term demand pressure.
If XRP were widely used by banks, we’d expect daily transaction volume (not just speculative trading volume) to be massive—yet it's relatively low.
Speculative Premium
A large portion of XRP’s price is driven by speculation rather than real institutional demand.
Many investors believe in a future where XRP will be used at scale, but that adoption hasn’t fully materialized.
Its past bull run prices were based on hype, and prices could drop as reality sets in.
Supply & Sell Pressure
Ripple holds a significant portion of XRP and periodically sells into the market.
This constant release of XRP into circulation creates downward pressure.
Competition from Stablecoins & CBDCs
Many banks and financial institutions are leaning toward stablecoins (USDC, USDT) and CBDCs rather than volatile assets like XRP.
Stablecoins provide instant settlements without the volatility risk of XRP, making them more appealing for payments and cross-border transfers.
Conclusion
Unless XRP gains widespread institutional adoption beyond just being a settlement tool, its valuation is inflated relative to its current use case. If hype dies down and utility doesn’t significantly increase, a correction would make sense in the long run.
You said:
What is a reasonable valuation for XRP removing all the speculation and only considering the current usage of it?
ChatGPT said:
A reasonable valuation for XRP, based purely on current real-world usage and removing speculation, would likely be significantly lower than its current market cap. Here's how we can approach estimating a fair value based on utility alone:
1. On-Demand Liquidity (ODL) & Settlement Usage
XRP's primary use case is cross-border payments through RippleNet and On-Demand Liquidity (ODL).
While Ripple claims growing adoption, the actual daily transactional volume from banks and institutions using XRP is small compared to its total market cap.
A large portion of XRP trading volume still comes from speculation on exchanges, not institutional settlement use.
Estimating Utility-Based Price
Let’s assume banks & financial institutions only need a fraction of XRP's supply at any given time for real transactions.
For context, SWIFT (the dominant global payment network) settles $5 trillion per day, but that doesn’t mean XRP will replace it or capture all of that volume.
Even if XRP were used for 1% of SWIFT’s volume, that would be around $50 billion in daily transactions.
Given that XRP is designed for rapid settlement (held for seconds, not days), the actual liquidity needed in the system would be far smaller—likely a few billion dollars at most.
2. Supply & Circulating Coins
Current circulating supply: ~55 billion XRP
If XRP’s real usage demand is only a few billion dollars at any given time, then its price per coin would be much lower than today’s level.
A conservative model: If XRP needed a total market cap of $5 billion to serve its actual transactional volume, the price per XRP would be:
$5,000,000,00055,000,000,000=$0.09
55,000,000,000$5,000,000,000=$0.09
If XRP needed a $10 billion market cap, the price per XRP would be $0.18.
These numbers assume zero speculation and only reflect practical usage.
3. Competitive Alternatives
Banks may prefer stablecoins (USDC, USDT) or CBDCs for settlements instead of XRP.
If that happens, XRP’s utility-based value could drop even further.
Final Thought
Pure utility price range (removing speculation): $0.05 - $0.50 per XRP (depending on actual adoption).
Current price (~$0.60 - $0.70 as of early 2024) is mostly speculation rather than true demand from banks.
If XRP’s adoption expands beyond just settlements (e.g., DeFi, smart contracts), its valuation could be higher, but based on current use, a fair price is likely far lower than today's market cap suggests.
You said:
The current price is 2.75 though so that means that its extremely overvalued?
ChatGPT said:
Yes, if XRP is currently trading at $2.75, then it is extremely overvalued relative to its actual real-world usage. That price is almost entirely speculation-driven rather than being backed by fundamental demand from banks and institutions.
Why is XRP Overvalued?
Speculation Dominates
The price is likely inflated due to retail and institutional traders betting on future adoption, not actual usage today.
Many holders believe XRP will be widely used by banks in the future, but that hasn’t fully materialized.
Utility-Driven Valuation is Much Lower
As calculated earlier, based on actual transaction volume and settlement needs, a more realistic price for XRP without speculation could be anywhere from $0.05 to $0.50.
At $2.75, XRP’s market cap is massively inflated compared to its real-world demand.
Ripple’s XRP Holdings & Selling Pressure
Ripple still holds a significant amount of XRP and regularly sells into the market.
If real demand doesn’t increase, but more XRP enters circulation, it could create downward price pressure over time.
Banks Prefer Stablecoins & CBDCs
Financial institutions are increasingly looking at stablecoins (USDC, USDT) and central bank digital currencies (CBDCs) for payments instead of XRP.
Unlike XRP, stablecoins don’t have volatility issues, making them more attractive for settlements.
What Could Happen Next?
If speculation dies down and investors realize XRP’s real use case is limited, a significant price correction could happen.
XRP could still maintain some premium due to speculation, but long-term, it needs actual adoption to justify a multi-dollar price.
Conclusion
At $2.75, XRP is massively overvalued based on its current utility. If speculation fades, a more reasonable price could be well under $1—or even below $0.50—unless it gains widespread, real-world adoption beyond what it has today.
Good luck, this is going to destroy so many people, its so sad. None of this is financial advice its just my opinion.
If XRP is only being used as a settlement currency for bank then why would there be these wild price predictions when the market cap is already $150 billion?
ChatGPT said:
Great question! The wild price predictions for XRP often stem from different interpretations of its utility, demand, and supply dynamics. Let's break it down:
Market Cap Misconceptions
XRP's market cap is often misunderstood. Market cap = price × circulating supply, but price movements depend more on liquidity and demand rather than market cap alone.
Many price predictions assume increased utility will drive higher demand, but market cap alone doesn’t dictate price ceilings.
Bank Adoption and Utility Argument
If XRP is mainly used as a bridge currency for cross-border settlements, its price would be driven by transaction volume rather than speculation.
However, banks and financial institutions don’t need to hold XRP for long periods—it's typically used in seconds. This limits the need for large amounts of XRP to be held, which could cap price growth.
Speculative vs. Real Utility
Many wild price predictions ($100+, $500+, etc.) are fueled by speculation rather than actual use cases.
In reality, even if XRP were widely used for settlement, price appreciation would depend on sustained demand, not just temporary spikes.
Liquidity and Scarcity Factors
Some argue that as more institutions use XRP, liquidity will tighten, potentially driving price increases.
However, the XRP supply is large (100 billion total, with over 50 billion circulating), and large holders (like Ripple itself) could introduce selling pressure.
Regulatory and Adoption Uncertainty
XRP's legal battles and regulatory clarity impact its adoption. A major victory (like its partial win against the SEC) can fuel hype-driven price predictions.
True institutional adoption is still limited, and even if banks use it, they may prefer private ledgers over using the open market.
Bottom Line
XRP has real utility in cross-border payments, but its role as a settlement currency doesn’t necessarily justify extreme price predictions. The market cap is already large, and unless significant new demand arises, a massive price surge would require much broader institutional adoption beyond just bank settlements.
You said:
So currently the valuation of XRP is already way higher than many banks and companies will the price eventually come down to a more realistic price to value in the future?
ChatGPT said:
That’s a solid perspective. XRP’s current valuation is indeed higher than many traditional banks and financial institutions, which raises the question of sustainability. Whether its price comes down to a more “realistic” value depends on a few key factors:
1. Utility vs. Speculation
A significant portion of XRP’s price is driven by speculation, not just utility. Many holders are retail investors betting on future institutional adoption.
If speculation cools down and usage remains limited to settlement purposes (where XRP is only held for seconds), the price could decline over time to reflect actual utility.
2. Market Cycles & Sentiment
Crypto markets go through bull and bear cycles. In bear markets, assets that lack strong organic demand (beyond speculation) tend to lose value.
If hype around XRP fades and institutions don’t adopt it at scale, its price may correct to better reflect real-world usage.
3. Inflation & Supply Dynamics
XRP has a fixed max supply of 100 billion, but a large portion is still held by Ripple and periodically released.
If Ripple continues selling XRP from its reserves, it could create sell pressure, gradually pushing prices down.
However, XRP is also deflationary, as transaction fees burn small amounts over time—but this effect is minimal in the grand scheme.
4. Institutional Adoption
If banks and financial institutions fully integrate XRP and hold it as a reserve asset, it could justify a high valuation.
But most banks prefer private ledgers and stablecoins over holding volatile assets like XRP, limiting potential demand.
5. Competitive Landscape
XRP was originally designed for fast, cheap payments, but other solutions like stablecoins (USDC, USDT) and CBDCs are gaining traction.
If banks prefer these alternatives, XRP’s price could drop to align with lower demand.
Realistic Price Outlook?
If XRP remains primarily a settlement tool, a valuation correction could bring it closer to its real utility value (which may be much lower than today’s levels).
However, if a new narrative or significant adoption shift occurs, speculative cycles could keep it elevated.
Long-term, unless real demand matches its high valuation, the price may deflate to more sustainable levels.
You said:
So in your opinion the value of XRP currently is way higher than it should be compared to its usage
ChatGPT said:
Yes, based on its current real-world usage, XRP’s valuation appears to be significantly higher than what its actual adoption justifies.
Why?
Usage Doesn’t Match Market Cap
XRP is mainly used for cross-border settlements, but banks don’t need to hold large amounts for long.
Most transactions are instant, meaning there’s no long-term demand pressure.
If XRP were widely used by banks, we’d expect daily transaction volume (not just speculative trading volume) to be massive—yet it's relatively low.
Speculative Premium
A large portion of XRP’s price is driven by speculation rather than real institutional demand.
Many investors believe in a future where XRP will be used at scale, but that adoption hasn’t fully materialized.
Its past bull run prices were based on hype, and prices could drop as reality sets in.
Supply & Sell Pressure
Ripple holds a significant portion of XRP and periodically sells into the market.
This constant release of XRP into circulation creates downward pressure.
Competition from Stablecoins & CBDCs
Many banks and financial institutions are leaning toward stablecoins (USDC, USDT) and CBDCs rather than volatile assets like XRP.
Stablecoins provide instant settlements without the volatility risk of XRP, making them more appealing for payments and cross-border transfers.
Conclusion
Unless XRP gains widespread institutional adoption beyond just being a settlement tool, its valuation is inflated relative to its current use case. If hype dies down and utility doesn’t significantly increase, a correction would make sense in the long run.
You said:
What is a reasonable valuation for XRP removing all the speculation and only considering the current usage of it?
ChatGPT said:
A reasonable valuation for XRP, based purely on current real-world usage and removing speculation, would likely be significantly lower than its current market cap. Here's how we can approach estimating a fair value based on utility alone:
1. On-Demand Liquidity (ODL) & Settlement Usage
XRP's primary use case is cross-border payments through RippleNet and On-Demand Liquidity (ODL).
While Ripple claims growing adoption, the actual daily transactional volume from banks and institutions using XRP is small compared to its total market cap.
A large portion of XRP trading volume still comes from speculation on exchanges, not institutional settlement use.
Estimating Utility-Based Price
Let’s assume banks & financial institutions only need a fraction of XRP's supply at any given time for real transactions.
For context, SWIFT (the dominant global payment network) settles $5 trillion per day, but that doesn’t mean XRP will replace it or capture all of that volume.
Even if XRP were used for 1% of SWIFT’s volume, that would be around $50 billion in daily transactions.
Given that XRP is designed for rapid settlement (held for seconds, not days), the actual liquidity needed in the system would be far smaller—likely a few billion dollars at most.
2. Supply & Circulating Coins
Current circulating supply: ~55 billion XRP
If XRP’s real usage demand is only a few billion dollars at any given time, then its price per coin would be much lower than today’s level.
A conservative model: If XRP needed a total market cap of $5 billion to serve its actual transactional volume, the price per XRP would be:
$5,000,000,00055,000,000,000=$0.09
55,000,000,000$5,000,000,000=$0.09
If XRP needed a $10 billion market cap, the price per XRP would be $0.18.
These numbers assume zero speculation and only reflect practical usage.
3. Competitive Alternatives
Banks may prefer stablecoins (USDC, USDT) or CBDCs for settlements instead of XRP.
If that happens, XRP’s utility-based value could drop even further.
Final Thought
Pure utility price range (removing speculation): $0.05 - $0.50 per XRP (depending on actual adoption).
Current price (~$0.60 - $0.70 as of early 2024) is mostly speculation rather than true demand from banks.
If XRP’s adoption expands beyond just settlements (e.g., DeFi, smart contracts), its valuation could be higher, but based on current use, a fair price is likely far lower than today's market cap suggests.
You said:
The current price is 2.75 though so that means that its extremely overvalued?
ChatGPT said:
Yes, if XRP is currently trading at $2.75, then it is extremely overvalued relative to its actual real-world usage. That price is almost entirely speculation-driven rather than being backed by fundamental demand from banks and institutions.
Why is XRP Overvalued?
Speculation Dominates
The price is likely inflated due to retail and institutional traders betting on future adoption, not actual usage today.
Many holders believe XRP will be widely used by banks in the future, but that hasn’t fully materialized.
Utility-Driven Valuation is Much Lower
As calculated earlier, based on actual transaction volume and settlement needs, a more realistic price for XRP without speculation could be anywhere from $0.05 to $0.50.
At $2.75, XRP’s market cap is massively inflated compared to its real-world demand.
Ripple’s XRP Holdings & Selling Pressure
Ripple still holds a significant amount of XRP and regularly sells into the market.
If real demand doesn’t increase, but more XRP enters circulation, it could create downward price pressure over time.
Banks Prefer Stablecoins & CBDCs
Financial institutions are increasingly looking at stablecoins (USDC, USDT) and central bank digital currencies (CBDCs) for payments instead of XRP.
Unlike XRP, stablecoins don’t have volatility issues, making them more attractive for settlements.
What Could Happen Next?
If speculation dies down and investors realize XRP’s real use case is limited, a significant price correction could happen.
XRP could still maintain some premium due to speculation, but long-term, it needs actual adoption to justify a multi-dollar price.
Conclusion
At $2.75, XRP is massively overvalued based on its current utility. If speculation fades, a more reasonable price could be well under $1—or even below $0.50—unless it gains widespread, real-world adoption beyond what it has today.
Good luck, this is going to destroy so many people, its so sad. None of this is financial advice its just my opinion.
כתב ויתור
המידע והפרסומים אינם אמורים להיות, ואינם מהווים, עצות פיננסיות, השקעות, מסחר או סוגים אחרים של עצות או המלצות שסופקו או מאושרים על ידי TradingView. קרא עוד בתנאים וההגבלות.
כתב ויתור
המידע והפרסומים אינם אמורים להיות, ואינם מהווים, עצות פיננסיות, השקעות, מסחר או סוגים אחרים של עצות או המלצות שסופקו או מאושרים על ידי TradingView. קרא עוד בתנאים וההגבלות.