XRP has been performing inconsistently for months, but according to this analyst from The Motley Fool, that could change. Alex Carchidi sees three reasons why the XRP price can rise sharply during December and beyond. Which three factors are involved?
1. Real assets find their way to the blockchain
More and more value is being recorded on the XRP Ledger, the blockchain on which XRP runs, in the form of real-world assets (RWA). These include, for example, US government bonds or cash equivalents that are registered as tokens on the blockchain.
In the past month, the total value of tokenized assets on the network grew by 4.3 percent to $364.9 million. Even more striking: the trading volume of these assets increased by 42 percent in the same period. This indicates active settlement, or actual use of the blockchain.
Each transaction on the XRP network burns a small portion of the coin, slowly reducing its supply. At the same time, the activity attracts developers and institutional investors, further strengthening XRP’s value proposition.
2. Strong growth of stablecoins
Stablecoins, digital tokens that are pegged one-to-one to currencies such as the US dollar, are crucial for tokenization. They ensure that assets such as bonds and invoices can be settled efficiently against cash.
On the XRP Ledger, the market value of stablecoins rose 37 percent last month to $287 million. Ripple’s own RLUSD stablecoin grew to over $839 million across multiple blockchains in the same period.
The larger the supply of such liquid assets, the easier it is to transact new tokenized assets on the network. This makes the XRP Ledger more attractive to new issuers and indirectly strengthens the demand for XRP.
3. More users and broader base
The number of unique stablecoin holders on the network increased by 7 percent last month and now stands at around 34,000 wallet addresses. A broader user base ensures more stable activity and less dependence on a few major parties.
In addition, Ripple is actively expanding in regulated financial centers, such as Bahrain. There, work is being done on combinations of stablecoin infrastructure and supervision, exactly the kind of environment that appeals to banks and financial institutions.
Source: https://newsbit.nl/analist-3-redenen-waarom-xrp-explosief-kan-stijgen/
