Crypto analyst and XRP holder Jake Claver has presented a bold long-term scenario where XRP could eventually overtake Bitcoin's dominant role in the cryptocurrency ecosystem. Describing this as the most important call he has made, Claver argues that markets may be approaching a black swan event that could trigger a chain reaction across global finance, reshaping how liquidity moves between traditional markets and digital assets.
Claver's thesis, often referred to as the "Domino Theory," begins with geopolitical instability and rising oil prices, particularly linked to tensions in key energy-producing regions. He believes a sharp increase in oil prices could push inflation higher and force countries like Japan to raise interest rates. This shift could unwind the long-standing Japanese carry trade, where trillions of dollars borrowed cheaply in yen have flowed into global assets, including stocks, bonds, gold, and cryptocurrencies. An accelerated unwind, Claver argues, could pull massive liquidity out of markets worldwide.
In such a stressed liquidity environment, Claver posits that institutions would sell assets that are easiest to exit. He suggests Bitcoin, especially through ETFs, could face heavy selling pressure, creating a feedback loop where falling prices trigger further redemptions, pushing prices lower before stability returns.
Conversely, Claver argues that XRP could benefit in this type of environment due to its fast settlement speed, low transaction costs, and existing liquidity infrastructure. Rather than viewing XRP as a purely speculative asset, he frames it as financial "plumbing" — useful for moving large amounts of value quickly when traditional systems slow down or face stress. His view is that if markets are forced toward instant settlement to reduce counterparty risk, assets designed for speed and liquidity could become more relevant.
Claver stressed that his comments are not financial advice and reflect one possible macroeconomic outcome, acknowledging that such a scenario would involve extreme volatility across all asset classes.
