Finance Consultant Says Institutions Will Never Leave XRP after Adopting It

Vandell Aljarrah, a finance consultant and co-founder of Black Swan Capitalist, has asserted that when institutional demand for XRP arrives, it will endure and bolster XRP’s value.

Aljarrah expressed this sentiment in a recent post on X. The remark came as a reply to community member Chad Steingraber’s commentary on the reason XRP sees minimal impact from cross-border payment utilities. 

XRP Unimpacted by Present Utilities 

Steingraber argued that XRP’s market value sees minimal impact from Ripple’s cross-border payment solution because of the medium through which the transactions occur.

Specifically, he noted that the transactions are essentially over-the-counter (OTC) trading, unlike the public exchange trading of XRP. Steingraber emphasized that cryptocurrency prices are heavily influenced by trading on public exchanges.

Moreover, the community pundit elaborated that traditional financial institutions, like Bank of America, are unlikely to source XRP through these platforms due to regulatory constraints. Essentially, while XRP sees utility behind the scenes, its impact on public exchange prices is limited. 

How XRP Price May Get Impact

However, Steingraber asserted that this apparent disconnect will be reconciled as business dependencies on XRP escalate.

He suggested that as companies rely more heavily on XRP for cross-border settlements, the demand for XRP will surge. The pundit foresees a scenario where businesses will move to acquire XRP from all available sources, including public exchanges.

– Advertisement –

Essentially, the commentator argued that XRP’s price appreciation will hinge on the depletion of available supply through utility-driven demand and investment inflows from vehicles like exchange-traded funds (ETFs) 

“Astronomical prices will come from a complete depletion of the public supply,” Steingraber submitted.

Aljarrah concurred with this perspective, asserting that once demand surges, it will remain. Furthermore, he proposed that institutional adoption will result in a permanent retention of XRP.

In his words: “Once institutions acquire XRP, they will never trade it. [They will]  only hold and use it, and this will continue over time.”

Exactly. That’s why once demand increases, it will never decrease, and once institutions acquire XRP, they will never trade it, only hold it and use it and this will continue over time.

— Vandell | Black Swan Capitalist (@vandell33) April 17, 2024

X user Michael Mann sought Aljarrah’s opinion on the timeline for the expected institutional adoption. While Aljarrah has yet to respond at press time, Mann expressed a sentiment that it may surface by 2026.

These conversations have emerged amid XRP’s enduring underperformance in the bull market despite its utility offering to the payment landscape. At press time, XRP trades at $0.498, down 5% over the past year.