Financial analyst Zach Rector has raised the possibility that XRP may become a preferred store of value following the culmination of the current cryptocurrency market cycle. He believes that investors may begin shifting capital into XRP as the market reaches its next peak.
XRP's Potential as a Store of Value
Rector noted that Bitcoin is currently recognized as the primary digital store of value. However, he believes that XRP could soon achieve a similar status, especially as other assets reach their peaks and market participants look for more stable alternatives.
> "I think it’s being underestimated how many people will look to XRP as a Store of Value after this cycle top..." — Zach Rector.
Key Factors Supporting This Hypothesis
Although Rector did not present a specific roadmap, several trends suggest that XRP could mature into a store of value. A central element is regulatory clarity. In the legal battle between Ripple and the U.S. Securities and Exchange Commission (SEC), Judge Analisa Torres ruled that XRP does not qualify as a security. This legal status distinguishes it from many other digital assets that still face unresolved regulatory questions.
Scarcity is another relevant factor. XRP has a capped total supply of 100 billion tokens, with more than 40% held in escrow by Ripple, limiting active circulation and contributing to the asset’s long-term scarcity profile.
Furthermore, institutional interest in XRP has grown, with investment firms like Bitwise and Franklin Templeton waiting on regulatory approval to launch XRP-based exchange-traded funds (ETFs).
Projected Value and Market Sentiment
Rector remains bullish on XRP’s performance in the current cycle. Despite the token recently reaching a high of $3.65, he believes it could rise significantly further, with a projected cycle peak of $20-$30, representing a potential 500% rise from the current price of $3.16. As XRP gains utility, regulatory assurance, and institutional backing, its perception could shift, positioning it as a legitimate alternative for investors looking to secure profits after the market's peak.
In conclusion, XRP has the potential to become a significant store of value in the future, bolstered by growing institutional interest and clarity in regulatory status. If these trends continue, XRP could offer a viable alternative for investors.
