XRP has been underperforming recently, but according to Edoardo Farina, CEO of Alpha Lions Academy, this may soon change. He recently even encouraged investors to buy XRP, calling 3,000 XRP a crucial amount to own.
Scarcity as a driver of value
Farina argues that the limited amount of XRP on the market could contribute to a price increase, especially when demand increases.
He points out that the total supply of XRP is set at 100 billion tokens, a number that will never increase. This scarcity could increase the value of the token as interest in XRP grows.
Currently, approximately 39 billion of the tokens are held in escrow by Ripple and gradually released, ensuring a controlled circulation of the supply.
Using XRP for ODL operations
Farina also points to the fact that more than 50 billion XRP is used for On-Demand Liquidity (ODL) services. This is a solution from Ripple that allows cross-border payments to be made quickly and cost-efficiently. According to Farina, the increasing use of XRP within the financial sector can put upward pressure on the price.
Conclusion
If demand for XRP continues to grow and more people decide to invest, owning 3,000 XRP as Farina recommends could yield significant profits. Investing in an even larger number, as some investors are already doing, can create an even more favorable position.
Source: https://newsbit.nl/crypto-ceo-legt-uit-waarom-je-3-000-xrp-moet-kopen/
