XRP Under Pressure in Bear Market, Real Variable is 'Payment Liquidity'

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Amidst XRP reigniting debate surrounding re-pricing expectations in a bear market, market experts analyze that not individual investors' speculative demand, but rather institutions' large-scale liquidity demand could be the key driver for price revaluation.

According to crypto-specialized media CryptoBasic on May 30 (local time), XRP fell more than 2% this month alongside the overall cryptocurrency market downturn, and has dropped over 27% since the beginning of the year, increasing investor anxiety. In this situation, Digital Asset Investor (DAI), an XRP community figure, pointed out in a recent video that many investors misunderstand how XRP re-pricing will occur.

Digital Asset Investor believes it's unlikely that XRP re-pricing will manifest as individual investors watching CoinMarketCap and awaiting a sudden price surge. He stated that he is focusing more on securing funds for additional purchases rather than the XRP price drop itself, emphasizing long-term trends.

CryptoBasic also reported remarks from Dom Kwok, co-founder of EasyA. Kwok cited inflation concerns, sell-offs after major announcements, investment concentration in artificial intelligence, and market sentiment following price trends as reasons why the cryptocurrency market is under pressure even amidst continuous positive industry news. He explained that sentiment could change once interest rates peak and new major catalysts emerge.

The core of the re-pricing scenario was presented in Charusan's explanation. Charusan viewed some individual investors' expectation that banks would buy XRP for speculative purposes at prices like $589 as a misunderstanding of XRP's role in international payments. He explained that banks, when needing to move $10 billion, could utilize XRP liquidity instead of costly Nostro and Vostro accounts.

According to Charusan, in such a transaction, the system would source $10 billion worth of XRP liquidity from market participants, use it immediately for settlement, and then settle in currencies like Korean Won, Turkish Lira, Yen, Euro, and US Dollar. He analyzed that deeper liquidity is needed to handle large transactions without significant market impact, and a higher XRP price could contribute to reducing slippage and transaction costs for financial institutions. However, CryptoBasic noted that such re-pricing might not actually occur, and even if XRP records a high price, it might not surge to ambitious levels.

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