XRP Price Potential Boost from Hidden Road Acquisition
Ripple’s recent acquisition of Hidden Road for $1.25 billion emphasizes its aim to serve institutional clients in traditional finance.
RLUSD’s Role in Post-Trade Settlement
Ripple confirmed that its stablecoin, Ripple USD (RLUSD), will manage Hidden Road’s post-trade transactions, integral to this strategy.
As RLUSD operates on the XRP Ledger (XRPL), most of these transactions will utilize the XRPL network. Though XRP won’t directly settle trades, it’s required for transaction fees, leading to a gradual reduction in XRP’s available supply due to fee burns.
With Hidden Road processing around $3 trillion annually, transferring this volume to XRPL could significantly increase network activity. To evaluate the potential impact on XRP pricing, Grok, an AI chatbot from xAI, provided insights.
Factors Influencing XRP Price Growth
Grok highlighted that various factors complicate price predictions, including how much Hidden Road’s volume transitions to XRPL, the number of transactions, the burn rate of XRP, and investor sentiment. It estimates a price range of $3.5 to $28.
However, the burn rate alone won’t greatly affect prices. If $3 trillion translates to about one billion operations on XRPL, it would burn only 100,000 XRP annually, a minor impact given the total supply of 58 billion XRP.
Potential for Value Growth
Real value ascension for XRP could stem from increased demand and adoption. If RLUSD channels more institutional transactions to XRPL, XRP’s importance could grow. Additionally, market sentiment may also influence prices, with the excitement surrounding Ripple’s purchase of Hidden Road potentially boosting investor interest.
Price Predictions from Grok
In realistic scenarios with gradual XRPL growth and RLUSD acceptance, XRP could rise to $3.50-$4.50 in six to twelve months. Should adoption accelerate and market sentiment improve, prices might hit $5 to $10 in one to two years. Optimistic forecasts suggest prices could reach $28.55, contingent on substantial adoption and a thriving crypto market.
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