Over the years, XRP has often been overshadowed by Bitcoin and Ethereum, earning the nickname “bankers’ coin” and facing skepticism from traditional finance. However, a shift is underway. Institutions that once disregarded XRP are now preparing to embrace it.
With the approval of spot Bitcoin ETFs in the United States, firms that were once wary of crypto are now embracing it and reaping the benefits. Many believe that a similar trend will soon follow for XRP.
One analyst predicts that once major companies like BlackRock and Fidelity can profit from an XRP product, the narrative will change. These institutions will highlight the advantages of the XRP Ledger, such as fast settlement, scalability, and low cost, positioning it as a key player in the future of digital payments and decentralized finance.
The retail mindset and the numbers behind it
This shift aligns with the mindset of new investors who value quantity. The simple psychology is that people prefer owning more units of something and compare numbers rather than market caps.
As explained by the analyst, a retail investor with $1,000 may choose to buy one percent of a Bitcoin or 350 XRP. The math plays a significant role in shaping the narrative, with Bitcoin’s market cap significantly higher than XRP’s, indicating more growth potential.
A changing narrative inside Ripple’s world
Critics have long argued that Ripple prioritized its own success over the XRP Ledger. However, this narrative is evolving.
Ripple’s co-founder, David Schwartz, has transitioned to a new role focused on developing decentralized finance applications on the XRP Ledger, supported by a $1 billion fund. This shift emphasizes a renewed focus on ledger development rather than corporate adoption.
This pivot is expected to reshape the ecosystem, with developers working on new DeFi platforms, liquidity tools, and on-chain applications to enhance the token’s utility.
Direct buying and a potential supply squeeze
Major players are now acquiring XRP directly from exchanges instead of through private over-the-counter deals, mirroring retail investors’ approach.
This shift is significant as buying on public markets increases pressure on liquidity, potentially leading to a “supply shock” due to increased demand. This shift in buying behavior could have unforeseen effects on price dynamics.
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