The XRP market debate has missed the real question, according to Digital Ascension Group CEO Jake Claver: Can the network take institutional payments without spending a fortune? In a March 26 video, Mr. Claver said the market is a limited area of digital power and said XRP’s price must rise materially if it is to support bank returns.
Claver recorded the case surrounding what he called a “liquidity index,” a formula he says is designed to measure “the real demand and stability of digital assets” rather than simply calculating its title. The model includes six variables: market depth, financial continuity, liquidity, current availability, fixed speed, and accessibility. When these factors are considered together, he said, the most important factor in the payment price is not speculation but a price high enough to enable large projects to be carried out.
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“The things that will drive the next financial system are not going to be just speculations,” Claver said. “They need a stable price to operate globally.”
Why XRP May Need a High Price
His argument begins with giving. Claver compared XRP to the need to collect, saying that the right number is not only issued but how many tokens are available for sale. If it is desired to mount when most are properly sealed, the remaining floats are of great value. He linked it directly to the XRP payment system, explaining that it is a “stable asset, the demand is growing,” and the reduced amount left in the market is doing a lot of value.
From there, Claver turned to the depth of the market, where he made like central barrier to institutional use. He compared the amount of water in XRP to a pool of water that should be deep enough to hold a large person without turbulence. If a bank wanted to move $100 million across the border using XRP, he said, the deep market would not be able to absorb it properly and a drop in prices would follow.
“That vessel must be a tree,” he said. “If XRP has a price of $1 each and you need to move $100 million to the Internet, you need a hundred million tokens sitting in the pool ready to take the transaction.
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The idea came to a head, which Claver cited as one of the most obvious reasons banks still aren’t using cryptocurrencies for large value transfers. He said that the $100 million XRP market today could lose “somewhere close to 10% due to the slide,” or about $10 million, while the traditional stock market could make a growth equal to half a percent. To reduce this difference, he argued, the fixed price on the books should grow by about 20 to 100. With fixed signals, he said, the price should do “all the work.”
Claver also noted that the availability of XRP could strengthen over time. He pointed to ETF productscorporate and banking assets, and DeFi pools as sources of locked tokens that cannot exist on exchanges. In this implementation, he said, the price increase would be accompanied by a shrinking float and the price would “not gradually decrease” but the difference would increase as the sellers are in short supply.
Speed is another pillar of the theory. Claver said XRP’s stable 3- to 5-second latency gives the same amount of money more leverage than slower networks, allowing market makers to reinvest the amount more efficiently. But he emphasized that speed alone is not enough. “If every trade takes you 1 to 2% off,” he said, “the rush turns into a quick way to lose money.”
He closed by arguing that the market cap provides only a superficial overview because it assumes that each index can be calculated based on the last traded price. For a network that needs to fix marginal cost at scale, he said, the real test is whether its order books can absorb it. number of organizations without wasting capital. According to Claver, this makes XRP’s higher prices less likely than the network’s expected performance.
At press time, XRP was trading at $1.3337.
Graphic design by DALL.E, chart from TradingView.com
