XRP’s Price Must Rise for Institutional Payment Flows, Claver Says
- Digital Ascension Group CEO Jake Claver argues that XRP’s market cap is a poor measure of its functional strength.
- Claver proposes a “liquidity index” to assess digital asset utility, focusing on factors like market depth and settlement speed.
- He emphasizes that higher XRP prices are needed to support large transactions without excessive slippage or price dislocation.
- A $100 million transaction in XRP could currently lose around $10 million due to slippage, compared to less than half a percent in traditional markets.
- Claver suggests that rising demand and shrinking available supply would necessitate a significant increase in XRP prices.
Jake Claver highlights the need for a higher XRP price to handle institutional-scale payment flows effectively, arguing that current market conditions lead to significant transaction costs due to slippage. He notes that the liquidity index provides a more accurate measure of digital asset utility than market cap alone.
With XRP trading at $1.3337, Claver’s analysis suggests that substantial price increases are necessary for the network to absorb large-scale transactions without disrupting capital flow. Source
