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Archbob

Is XRP really underpriced compared to the rest of the market?

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Surely all DAs are priced based on an idea of potential future utility. If not, what is their worth? People speculatively invest because they believe the asset will increase in value based on an expectation of future utility. I don't think it's correct to say that any DA is underpriced or overpriced as no DA is actually being used in any significant amount for anything, the prices are almost 100% based on speculation. To boil it down, the price is simply what someone is willing to pay for it and that makes it fair market value in my eyes.

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OP doesn’t consider utility volume’s effect on price in the future- this volume will dwarf speculation volume in the years ahead (or XRP has failed). If it’s only speculation that will drive XRP’s  price why wouldn’t we just put money on a low cap cr4p coin?

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So, I did a video and I've been doing some thinking and comparing XRP with other coins that have Utility with similar supplies, I don't actually think XRP is that underpriced compared to the overall crypto market. It already has a giant premium priced in for its future Utility.an
 
What do you guys think?

No. Most (all?) other crypto even do not have ANY intrinsic value. Even XRP hardly can defend its present valuation that is based on speculation. But at least it has a roadlap towards a true value

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Posted (edited)

"XRP is underpriced compared to the overall crypto market". Even if you do compare it among coins with Utility that are PoS, there is no comparison. XRP is the cheapest and fastest coin that when fully adopted (beyond just cross border transactions), will have volumes unheard of to what you see now. Market Cap will increase and price per XRP will finally be at true value. Can I ask you, since I didn't watch your video, which coins you believe are more undervalued/priced in the current and very young crypto market?

Edited by XRPLearner

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@Archbob - Although you won't necessarily make many friends here with your video, you do make a lot of sense.

Although there is no doubt a level of manipulation in the market, it is still none the less a free market. The "market price" of any given asset is the collective will of every person out there. Sellers needs buyers, and buyers need sellers. A seller can only sell at the price a buyer will buy at, and same the other way around. A lot of the wild swings I suspect are a lot of amateurs running bots which panic buy/sell at the first sign of movement, triggering more and more to follow suit.

Over priced / under priced... I don't know. The price is however the markets sentiment, if people thought it would be worth $0.50 next week, we'd move that direction.

Best comparison really is visual to appreciate how XRP compares.

image.png.cf5da25b1e70579bd9863c3fc1575cd8.png  

XRP has a circulating market cap of $15B USD. The combined total of the next 17 (including Tether) is $23B.

We may feel hard done by on occasion, but there is a large premium on XRP versus almost every other asset within our price.

 

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Posted (edited)

You can actually look at the hard numbers any way. If you go by X-rapid use right now, there's hardly any and if you base it on that XRP would be way less than it is now. Therefore most of the price valuation right now based on that would be because speculation and hype.

If you actually look at Utility, which is basically total volume, then xrp's volume does not justify its price right now compared to other coins. ETH's volume is several times XRP's normally and they have similar market caps. TRON's is 3/4 of XRP's volume and its less than 10% of the price with the same maximum supply. LTC and EOS both have more average volume than XRP and yet have much less marketcap.

Based on actual utility of the digital asset right now, XRP is overpriced compared to the others. But XRP can hold its current price in comparison to the others because the news and hype has already been factored in to XRP current price so I don't think its being undervalued. The only asset that has a bigger premium in the space is BTC.

You can argue that all digital assets are being suppressed sure, but you really can't argue that XRP is more suppressed than other digital assets.

I'm personally investing in it because its safer than other assets because they have a lot of partnerships and because of that its more likely to survive any kind of crash while still having high potential for growth in the future. I'm not investing in it because I think it has the highest ROI potential of any coin out there. There are several coins which I think have better 2 or 3 year potentials in terms of raw ROI, but I also view them are more risky investments.

Edited by Archbob

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2 hours ago, Archbob said:

If you actually look at Utility, which is basically total volume, then xrp's volume does not justify its price right now compared to other coins. ETH's volume is several times XRP's normally and they have similar market caps. TRON's is 3/4 of XRP's volume and its less than 10% of the price with the same maximum supply. LTC and EOS both have more average volume than XRP and yet have much less marketcap.

ETH's volume is because it's a base pair on many exchanges and because it's a way of funding ICOs - many of which we see the owners eventually dumping their crowdfunded ETH back onto exchanges months down the line when their project fails (most of these projects fail).  In other words, much of the demand is artificial in that sense - it's purely a means to an end (as a base pair, to buy another crypto, as a means of funding - to eventually cash out). Volume doesn't always indicate price increases - it can be a great churning of buys and sells that drive the price up, sideways or down.  Sure, we see volume spikes when there's a sudden interest in an asset and then people associate volume with price increases, but volume does not indicate a price "should" be at a certain level.

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