A crypto analyst has offered a fresh perspective on XRP’s price, framing it as a systemically important liquidity asset. According to the analyst, its value extends beyond typical cryptocurrency speculation, serving instead as a foundational tool for global liquidity, settlement, and treasury management.
XRP Price Signals Value Beyond Speculation
On January 27, analyst and investor Rob Cunningham shared a view that challenges conventional thinking about XRP. He emphasized that assessing XRP’s worth is less about crypto market speculation and more about its role in balance sheets, liquidity, and risk management. He argued that to understand the altcoin, one must see it as a structural component of the global financial system, not just a traded asset.
Cunningham noted that when XRP is viewed as financial infrastructure—neutral collateral that provides settlement certainty—its price behavior will diverge from that of Bitcoin. He described XRP as a systemically important liquidity asset, meaning its valuation stems from its systemic function rather than market hype. This perspective positions XRP as essential infrastructure for liquidity and cross-border settlements.
The analyst also referenced previous comments from Ripple’s CTO, David Schwartz (known as Joel Katz), who suggested that for XRP to fulfill its intended purpose as a cost-effective, neutral bridge for global liquidity and settlement, its price would need to be significantly higher, potentially well above $200.
Building on this, Cunningham concluded that regulatory clarity for XRP could come first, followed by adoption, with the price adjusting accordingly. He stressed the importance of patience, stating that the token’s future is inevitable once its functional role is fully recognized and integrated into global finance.
Price Potential Driven by Global Liquidity and Settlement
In his analysis, Cunningham referenced an image outlining XRP’s potential flow, liquidity, and price relationships. It illustrated the price levels XRP could reach if driven by global liquidity and settlement volumes.
According to the image, if XRP were to handle just 15% of SWIFT’s annual flow, it would process $22.5 trillion in yearly liquidity. Assuming a 25% settlement rate through tight liquidity corridors, the annual XRP-settled flow would total $5.6 trillion. The liquidity required to support these flows depends on velocity, which typically ranges from 1:6 to 1:12 per year.
Based on an annual flow of $5.6 trillion and a buffer of 2x to 5x, Cunningham estimates the necessary XRP liquidity would range from $280 billion to $700 billion. This reflects the treasury scale needed for XRP to effectively absorb and settle global flows.
The price scenarios presented show a wide range. A base case suggests a price between $2.50 and $7.50 for XRP, while broader ripple effects could push it to $10 to $200. If XRP were to function as a major reserve currency, the image indicates its price could reach $50 to $100 or even higher.
Frequently Asked Questions
Of course Here is a list of FAQs about the perspective that XRPs price isnt about crypto speculation but its role as a systemically important liquidity asset
Beginner Core Concept Questions
1 What does systemically important liquidity asset even mean
It means an asset that is considered essential for the smooth fast and cheap movement of money around the global financial systemlike a vital piece of plumbing for banks and payment providers
2 How is this different from Bitcoin or Ethereum
Bitcoin is often seen as digital gold and Ethereum as a world computer This view positions XRP as digital oil for crossborder payments focused on utility and settlement speed rather than just investment
3 So theyre saying XRP isnt a cryptocurrency
It is a cryptocurrency in a technical sense but the argument is that its primary value driver shouldnt be compared to speculative crypto assets Its worth is tied to its adoption and use for moving value similar to how a highways value is in the traffic it carries
4 What realworld problem is XRP trying to solve
It solves the problem of slow expensive and unreliable international money transfers Currently moving money across borders can take days cost high fees and require funds to be preheld in accounts around the world
Intermediate Mechanism Questions
5 How does XRP actually provide this liquidity
XRP acts as a bridge currency Instead of a bank needing to hold money in dozens of foreign currencies it can convert money to XRP send it across the XRP Ledger in 35 seconds for a tiny cost and the receiving institution converts it to the local currency
6 What is OnDemand Liquidity
ODL is Ripples product that uses XRP for this exact purpose Companies like payment providers use it to source liquidity in realtime without needing to prefund accounts abroad
7 Who needs to use XRP for this idea to work
Mainly financial institutions banks money transfer companies payment processors and central banks Widespread institutional adoption is key for it to become systemically important