Crypto Researcher Forecasts XRP Price Volatility Decline

Crypto researcher and XRP community member SMQKE claims XRP’s price volatility will drop significantly over time as demand rises.

In a recent commentary, he pointed to an unnamed document that discusses the volatility issues faced by Ripple and IBM with crypto assets.

XRP Volatility to Drop as Demand Spikes?

According to the document, Ripple attributes XRP’s volatility to rapid ecosystem growth and demand surges. The report asserts that Ripple expects this volatility to stabilize as XRP usage becomes more consistent.

Additionally, IBM is exploring the development of stable digital assets backed by currencies such as the dollar or gold for more price stability. They aim to facilitate cross-border transactions with fiat and digital currencies.

SMQKE also referenced a 2022 paper by Alex Gerch from the University of Malta, discussing how schools could accept tuition payments via blockchain. He suggested that XRP and XLM might have fixed values in the future for smoother money transfers via blockchains.

Circulating Claims of XRP Being a Stablecoin

Various XRP community members claim XRP was designed to function as a stable bridge asset. A November 2021 World Bank report controversially labeled XRP a stablecoin due to its low fees and quick settlement times.

In November 2024, commentator WrathofKahneman noted that XRP sometimes behaves like a stablecoin due to its narrow trading range, although he did not classify it as one.

Some Disagree

Not everyone agrees with categorizing XRP as a stablecoin. Panos Mekras argued against this, stating that Ripple has limited control over the network and XRP can never be a stablecoin.

Despite increasing 300% since November 2024, XRP has remained around the $2 mark. Analysts suggest this range indicates a natural market balance, though some foresee a breakout if demand rises while selling pressure decreases.