Here’s the scoop: Lots of XRP is being used in active wallets, trustlines, and trades by enthusiasts—hundreds of thousands of them! And there’s even some hidden away by PNG collectors. Now, the analyst opens his analysis if this whole ecosystem grows 2, 5, or even 10 times bigger.
New XRP Tokens; A Boon or Bane?
Artur Kirjakulov, CEO of XPMarket.com, has challenged common misconceptions within the XRP community regarding the impact of new tokens and the expansion of the XRP Ledger (XRPL) on XRP’s value. He firmly believes that these developments benefit XRP and presents compelling arguments to support his stance.
Initially, Kirjakulov emphasized the increasing quantity of wallets on XRPL, underscoring that the establishment of each new wallet necessitates a specific quantity of XRP. The growth in the number of wallets indicates a growing demand for XRP, similar to a larger party where more attendees require a greater entrance charge.
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Plus, the analyst delves deeper into the trust lines within XRPL’s ecosystem, pointing out that their establishment requires XRP to be locked up. As more trust lines are created, more XRP is temporarily removed from circulation, contributing to its scarcity and potential value appreciation. One of the top reasons that analysts are bullish on XRP in April to hit a new ATH.
Moving ahead, he examined the demand for XRP in trading activities on XRPL’s decentralized exchange and liquidity pools. He cited statistics showing a significant amount of XRP being sidelined due to these transactions, further demonstrating its utility and demand within the ecosystem.
NFTs are Icing on the Cake!
The analyst concluded his analysis by highlighting the role of NFTs in driving demand for XRP, as storing NFTs on XRPL requires XRP to conserve space. This demand from large NFT collectors adds another dimension to XRP’s utility beyond simple transactions.
In Short, we can say Kirjakulov has urged the XRP community to consider the broader implications of XRPL’s expansion and the introduction of new tokens. Rather than viewing them as threats, he believes they enhance XRP’s value proposition by creating additional channels that necessitate its use.
Also Check Out The : XRP Price Defies Whale Dumps, Surges 4%: Is $1 Finally in Sight?
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- Source: https://coinpedia.org/news/xpmarket-ceo-opens-up-on-misconceptions-new-xrp-tokens-could-benefit-xrp/
