Chad Steingraber, a renowned game developer and prominent figure in the XRP community, has proposed a daring vision for XRP’s future, suggesting its value could soar to an astonishing $20,000 per token. His arguments center on XRP’s deflationary supply, institutional adoption, and the potential for a significant supply shock.
10 – Bank of America, Chase, Wells Fargo, ect…will NOT use ODL as we know it. If you think Chase is going to rely on Kraken or Binance to source public exchanges for Trillions of dollars in global transfers…I have a nice igloo in Florida to sell you 🙂
— Chad Steingraber (@ChadSteingraber) August 18, 2022
(Thanks DAI)
Deflationary Supply and Shrinking Accessibility
XRP’s supply is capped at 100 billion tokens, with a deflationary mechanism burning a small amount per transaction. Currently, approximately 57 billion tokens are in circulation, but some are irretrievably lost, further tightening availability. Steingraber argues that this diminishing supply, paired with increasing demand, could set the stage for a dramatic price surge.
4 – Third “Limited Assets”, The Mona Lisa is valuable because it’s the only one… we can make copies, or what we call “Derivatives”, but we can’t make more Mona Lisa’s. Also, because of its importance to society we place on it a high price.
— Chad Steingraber (@ChadSteingraber) August 18, 2022
That value is in our minds.
Institutional Adoption and Private Ledgers
Steingraber envisions a future where XRP becomes a reserve asset for banks, akin to gold. He suggests that financial institutions like Bank of America and JPMorgan could issue private digital currencies, backed by XRP, on private ledgers. These setups would enable secure cross-border transactions while keeping them off public ledgers, potentially driving demand.
17 – So how do they send their money to another bank?
— Chad Steingraber (@ChadSteingraber) August 18, 2022
Enter stage right –> Institutional Grade Liquidity Providers (IGLP’s) …*cough* polysign *cough*… This is also a Private #XRP Ledger that holds a massive basket of different digital assets.
He further highlighted the role of institutional liquidity providers (ILPs), which would act as intermediaries holding large reserves of XRP to facilitate seamless, low-risk transactions between banks. For instance, XRP could serve as a bridge currency for transfers between major banks, fueling a surge in institutional holdings.
A Looming Supply Shock?
Steingraber warned of a possible “arms race” among financial institutions to acquire XRP, potentially depleting the public supply. Such a scenario could leave retail investors sidelined as prices skyrocket. He speculates the circulating supply might eventually shrink to levels comparable to Bitcoin’s 21 million-token hard cap.Despite the intriguing arguments, Steingraber’s vision relies on significant assumptions. Widespread bank adoption of XRP as a reserve asset would require robust regulatory clarity and institutional trust in its technology.
Also Read: XRP Price Faces Key Test: Can Triangle Pattern Breakout Push It Above $2.72?
At its current price of $2.35, XRP would need an 850,963% surge to achieve the $20,000 mark—a scenario that remains speculative but continues to captivate the crypto community.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
About The Author
