Vincent Van Code, a software developer and distributed ledger enthusiast, shared insights on why XRP may be poised for significant price growth. His arguments are based on upcoming amendments to the XRP Ledger protocol.
Technical Foundation of the Forecast
Van Code highlights three interconnected amendments currently processing through XRPL governance. These include Credentials, Permissioned Domains, and Permissioned DEXs, collectively forming an essential infrastructure for banks and funds to engage with the ledger in line with regulatory standards.
The Credentials amendment (XLS-70) enables wallets to store verifiable on-chain identities proving KYC and AML compliance, ensuring institutional players can deploy capital safely. Permissioned Domains (XLS-80) build gated marketplaces where only credentialed wallets can participate, effectively separating regulated markets from the broader retail environment.
Key Institutional Opportunities
With these updates, banks and funds will establish regulated corridors for stablecoin settlements and foreign exchange flows directly on the XRPL. They will need to acquire and hold significant XRP reserves to operate these markets, which can be locked into automated market makers for liquidity and yield generation.
According to Van Code, the shift of XRP from a speculative asset to a structural necessity within financial systems is significant. As XRP is absorbed into institutional pools, the supply available for retail circulation diminishes, setting the stage for scarcity.
Scarcity-Utility Dynamic
XRP has been viewed as a bridge asset for cross-border payments, but the addition of credentials and permissioned marketplaces alters its role in regulated finance. This dynamic reduction of circulating supply alongside increased institutional demand creates conditions for what Van Code refers to as a price detonation. He emphasizes that the narrative is not about excluding retail investors but making the XRP they hold substantially more valuable.
Vincent Van Code’s forecast is based on the tangible evolution of XRPL. Should these features gain traction and institutions begin to lock XRP into deep liquidity pools, the impact on supply dynamics could be profound.
