Thread by @Tank2033js

I'm getting a lot of comments about XRP price and why it's not moving so let me explain once more how XRP price is determined for the new people to this space and those that still have trouble understanding🧵

XRP price is determined by dividing the value/volume on ledger divided by the circulating supply. Determining the circulating supply is not that simple however. If you google XRP circulating supply it will say about 56 billion. This number is misleading. Just because 56 billion

is in circulation, it does not mean that the whole 56 billion is on the ledger for use. Most of that is held in private wallets, by whales, or in exchanges. What matters for price is how much of that supply is active on the ledger. I would guess about 20% of that is active on

the ledger on a daily basis. So lets say, for the sake of this example, 10 billion XRP is active on the ledger. Now we have to account for how much is in the AMM pools to be transacted. Let's assume all 10 billion is in the AMM pools paired to XRP or RLUSD.

The banks and financial institutions will have their own tokens or CBDC's. They will pair those with RLUSD and transact using the liquidity in the AMM pools. The XRPL has a algorithm that searches the best path/source of liquidity to complete a settlement. This algorithm uses

XRP as the default source of settlement and will only use something else if it's better than XRP. Which most likely won't be the case. Now to give an example of how much value/volume could be on the ledger...Swift does about $5 trillion in settlement daily, J.P. Morgan does

$10 trillion, B of A does about $7-8 trillion, SBI Japan does $2 trillion. That's about $25 trillion daily in settlement with just 4 banks/institutions. Ripple has 1700+ NDA's that we only know a tiny fraction of who they are. Let's take just 10% of these 4 and use that on ledger

So take $2.5 trillion on ledger in AMM pools. These pools have to be about double the $2.5 trillion value to avoid failed transactions and friction within the pools. Banks CANNOT have failed transactions. So the real value/volume on ledger needs to be about $5 trillion.

To determine the price XRP needs to be to avoid friction and have Deep enough liquidity pools to settle without failure between different currencies or CBDC's, you take the $5 trillion and divide it by the 10 billion of XRP in the pools. XRP's price would need to be $500 to

facilitate settlement daily. This is a very basic example of what will happen when these banks start using XRP daily for settlement. There are other factors like tokenized assets, tokenized debt, tokenized real estate, etc that will all add value to the ledger in the future.

For anyone saying XRP will never be a high price you really don't understand what XRP is going to be used for or how it works. Retail doesn't matter, Market Cap doesn't matter, Charts are nice to look at but don't matter either. You can't chart how much liquidity/Depth of AMM

Pools will be needed to handle the settlement of those 1700+ NDA's on a daily basis. Nobody has any clue how high that number will be. XRP MUST be a high price or it won't work efficiently to do what it was designed to do which is handle Large transactions fast and cheap...

I Hope this gives people some clarity as to how XRP will be priced in the near future. I've wrote a similar thread before but keep getting many comnents about this so I just wanted to give a refresher to people. I hope this helps...

God Bless!