There’s a common misbelief in the #XRP community that new tokens and expansion of the #XRPL ecosystem might hurt $XRP value by draining the liquidity out of it. I don't agree with that, I believe that the development of XRPL's ecosystem will have a direct positive impact. Let me explain how.
In this tweet we will look into numerical #facts.
1. Wallets.
There are over 5 million wallets on XRPL, each needing 10 XRP to start. That's 50 million XRP not being used anymore. More wallets mean more people needing XRP just to get started.
Our conclusion? The XRPL ecosystem is like a party that gets bigger and better, and the price of admission? More and more XRP, of course. Because nothing screams 'natural demand' like a mandatory fee.
2. Trustlines.
With almost 7.4 million #trustlines, each hoarding a modest 2 XRP, that's just a tiny fraction of 14.8 million XRP playing hard to get. The all-time high was a measly 21 million XRP locked away.
The moral of the story? A blooming ecosystem needs more trustlines, and with it, more XRP taking a temporary leave of absence from the market.
3. Trading.
On the DEX, every limit order needs 2 XRP to be set aside. The more trading, the more $XRP gets tucked away. Imagine this: busy traders putting up lots of offers are like people saving coins for a rainy day. Last month, with 740,000+ trades from 39,000+ traders, think of all the XRP being set aside!
Conclusion: More trading means more XRP being saved up, adding to the XRP already needed for wallets and trustlines.
4. AMM
I will say only a few words here, because it is THAT simple to understand... During the first few days of AMM launch, more than 500k XRP were locked in LP pools. mic drop
5. NFTs.
For NFTs, the Ledger keeps up to 32 in one place to save space. When someone needs more room for new NFTs, they need more XRP (extra 2 XRP for extra 32 slots). Heavy NFT collectors aren't just buying and selling JPEGs; they're also using XRP to store it. The more people collecting NFTs, the more XRP they'll need to get from the market. It's like paying a fee every time you want to add to your digital art collection.
So, what do we have? Tens of millions XRP used by active wallets, tens of millions are used by trustlines, hundreds of thousands by traders, and some undisclosed (yet) amount by PNG collectors.
Now, imagine the ecosystem's grows 2, 5, 10 times... Next time someone says projects (including meme coins) create no value for $XRP - show them this tweet.
Top comments (0)