Market analyst Jake Claver has outlined a bullish case for XRP, arguing the token is significantly undervalued and poised for substantial price appreciation if key market conditions materialize. His analysis, shared on social media platform X, centers on the growth of derivatives trading, the rise of Central Bank Digital Currencies (CBDCs), and Ripple's unique escrow system.
Claver highlights the immense potential within the $6.5 trillion daily foreign exchange market, suggesting XRP is well-positioned to capture a larger share as derivatives trading expands. He argues that increasing institutional adoption of derivatives for speculation and hedging could drive significant demand for XRP as a fast settlement asset.
Another core pillar of Claver's thesis is the accelerating development of CBDCs. He notes that "CBDCs are moving forward, more steadily than people think," with major economies already testing digital currencies. In a future where CBDCs require efficient cross-border settlement, Claver believes XRP's low-cost, high-speed network fits perfectly, strengthening its utility and demand.
The analysis also delves into Ripple's escrow model as a critical factor for price dynamics. Claver explains that Ripple's time-locked, monthly maximum escrow releases prevent emergency dumping of supply during market crises. While this design ensures supply predictability, it can also make supply shocks more severe. Claver suggests that as demand rises from derivatives and CBDC use, this constrained supply could lead to significant price appreciation, despite potentially increasing short-term volatility.
This optimistic outlook comes amidst a period of heightened trading activity but price consolidation for XRP. Data from exchanges like BTC Markets in Australia shows XRP recently surpassed Bitcoin as the most traded asset, driven by strong community engagement and Ripple's On-Demand Liquidity (ODL) partnerships. However, the price has struggled to hold gains above $2.20, currently consolidating between $2.00 and $2.15 amid regulatory uncertainty and whale distribution.
Institutional developments continue in the background, with Ripple securing an Electronic Money Institution (EMI) license in Luxembourg to expand regulated EU services under MiCA rules. The company has also been promoting its prime brokerage arm, Ripple Prime. Over 2.5 million XRP have been permanently removed from circulation via transaction burns in recent years, adding a deflationary element to the supply narrative.
