The price of XRP could easily reach the $20 level in an upcoming bull run, said crypto YouTuber ModernInvest in one of its recent videos.
A rise above this level would amount to a nearly 40-fold price increase, a historic milestone for XRP. The altcoin has still not managed to break its all-time high of $3.40 since January 2018.
‘XRP is ready for a huge price increase’
ModernInvest states that XRP is unlikely to remain below $20 and bases its prediction on several fundamental factors. An important driver is the expected increase in the number of transactions on the network, partly due to the arrival of Ripple’s own stablecoin (RLUSD).
This new stablecoin is expected in Q4 of this year on both the XRP Ledger (XRPL) and the Ethereum (ETH) ecosystem. With the introduction of RLUSD, the network could attract millions of new users, which would increase the demand for XRP and further increase its price.
Burning mechanism strengthens XRP price
ModernInvest also points to XRP’s burn mechanism as another bullish factor. A small number of XRP tokens are burned with each transaction on the network. Nearly 13 million tokens have been destroyed so far, which could have a positive impact on the value of XRP. The number of coins burned is expected to increase as the network processes more transactions, which could further drive up the price of XRP.
Grayscale XRP Trust can amplify price movements
A third factor cited by ModernInvest is the launch of the Grayscale XRP Trust. This fund mainly offers institutional investors the opportunity to invest in XRP. Currently, the fund has raised nearly $2 million in capital. Further investments in the fund could play a major role in boosting the XRP price and a possible rally towards $20.
Source: https://newsbit.nl/xrp-prijs-kan-tijdens-volgende-bull-run-makkelijk-20-doorbreken-voorspelt-crypto-analist/
