According to the external review, it may not be accurate to make “XRP zero” a central issue in the current market. According to the article, under existing liquidity, institutional cooperation and fixed supply structures, XRP is more likely to experience fluctuations or long-term weakness than to suddenly fall to zero.
Zero requires multiple extreme events at the same time.
According to the article, if the XRP were to fall to zero, at least a few extremes would have to occur at the same time: the major markets in the United States, Europe and Asia would have to tighten their trade channels in parallel, the XRP Ledger would have a fatal failure and could not be repaired, and Ripple itself would be subject to unbearable operational or legal pressure.
It was mentioned that a single exchange would not be sufficient to lose the full price of the XRP, as transactions would normally be moved to other platforms. As a result, the so-called “direct to zero” is closer to the end risk than to the conventional market scenario.
Current support from market value, liquidity and institutional use
According to the article, the current market value of XRP is still above $70 billion and the Ripple network is still used by institutions in several countries. At the same time, the total XRP ceiling is 100 billion, and the new supply will not expand indefinitely, which is seen as one of the reasons why prices will not be easily eliminated.
- The market value remains above $70 billion.
- Institutional network covered 55 or more countries
- XRP total ceiling 100 billion
The three main risks are summarized in the text: the contraction of liquidity as a result of regulatory changes, serious technical malfunctions in books or networks, and the associated decline as a result of the overall fall of the encrypted market. However, it is argued that when these factors appear alone, they are generally not sufficient to allow a dominant currency that is still liquid to fall to zero.
Long-term risk is more like a slow recession.
It is also mentioned that if the time is extended to the next five or ten years, the XRP is not entirely without the possibility of losing its market position. If institutions adopt stagnating and banks turn to other instruments, XRP prices may be weak for a long time.
However, the article concludes that even if this were to happen, it would be more likely to be a slow decline rather than a one-time clean-up. The core variable remains whether institutions continue to use the Ripple network and whether the regulatory environment remains stable.
It also refers to Ripple ' s statement by David Schwartz, former Chief Technical Officer, who was reluctant to make a clear judgement on extreme prices. According to this article, both “to a very high level” and “to zero” are based on weaker premises.