Crypto enthusiast Happy Daddy recently shared his thoughts on the common claims that XRP cannot reach high valuations due to potential sell-offs. He argues that Ripple's On-Demand Liquidity (ODL) system ensures adequate liquidity to maintain price.
ODL System and XRP Recycling
Happy Daddy explained that Ripple's ODL system is designed for instantaneous buy-sell processes. XRP is utilized for one transaction and then recycled into the next, often within seconds. This allows a single XRP token to process hundreds of transactions in one day, significantly multiplying its liquidity footprint.
Institutional Options and Custodial Integration
Besides ODL, Happy Daddy pointed out that institutions also have the option to custody XRP and establish their liquidity pools. He noted Ripple's acquisition of custodial service providers, indicating investments in infrastructure for institutional liquidity management. These options enable large players to manage liquidity more effectively.
Unified Liquidity Framework and Future
Discussing the future of Ripple's ecosystem, Happy Daddy stated that Ripple is working toward a unified liquidity framework. He mentioned that the Prisma aggregator will connect with decentralized exchanges to allow ODL to access DEX liquidity. Happy Daddy emphasized that the system is designed to absorb ongoing sales activity through recycled use.
Happy Daddy's opinions demonstrate that Ripple has a clear strategic plan for ensuring XRP liquidity. Understanding these aspects may help reconsider views on XRP's potential in the cryptocurrency market.
