The renowned economist and financial strategist, Charles Lee, gave a brief lecture on his tweeter page on XRP price and market performance where he stated that the token price range will hinder its liquidity from facilitating xRapid transactions in the future.
Speculating XRP price future performance on what he called ‘XRP Price Step-Ladder Formation’ he explains why the token price has been on the same range for a while. Why the price performance of other digital assets has not made any impact on XRP price.
Though XRP transactional volume from MoneyGram, other xRapid partners like banks and other financial settlement firms will grow high, the price will also increase but still following the Step-Ladder Formation.
The Step-Ladder Formation in Relationship to XRP Price Performance
Mr. Lee stated that a small increase in the XRP price would be noticed at the beginning within a longer time between the steps. As the transaction volume in the network increases, the price increase within each step will be higher and the time between each step shorter.
In this way, the XRP price will be stepping up to the next price range where the supply would be sufficient for the volume of xRapid transactions.
He went further to state that if this continues, there would be a stage in the future where the current XRP price range will be a hindrance to its liquidity in facilitating all the constant xRapid transactions because the supply will not be large enough.
The Major Obstacles to Solving This Problem
Mr. Lee explained that even though this challenge has been identified, there are two major obstacles to handling them. Though Ripple has signed an agreement to partner with MoneyGram, it is not yet clear when XRP would be significantly used by MoneyGram.
Another challenge is that there are no large retail entities like MoneyGram, running on xRapid that could enable price sustenance at a particular range. In this case, minimal price volatility in seconds cannot be retained.
According to Lee, there is no doubt that XRP price performance will get better and stabilize, but the problem is when. This situation may make prospective individual investors sit on the fence.
