Edoardo Farina: Only 1 % of the traders can soon afford XRP - growing institutions dominate the cryptoma market

<p> <strong> Edoardo Farina: Only 1 % of the traders can soon afford XRP - growing institutions dominate the cryptoma market </strong> </p>
XRP: Challenges for private traders and opportunities by institutional investors
Edoardo Farina has predicted that the increasing inflation and the growing living costs will lead to the fact that only about 1 % of traders will be able to acquire XRP in the near future. His assessment reflects the increasing financial burdens from which many private investors suffer. While more and more small traders are forced to sell their crypto stocks to secure their livelihood, large institutional investors take on a more and more dominant role on the market.
The effects of inflation on private traders
The current economic situation means that many private traders withdraw from the cryptom market. Inflation increases the cost of living, which makes it increasingly difficult for many people to fulfill their financial obligations. Farina points out that numerous small traders have to act accordingly and liquidate their stocks, including XRP, to cover daily needs.
The withdrawal of these traders has led to a significant decline in participation in private investors. As a result, institutional investors benefit who are now taking the opportunity to significantly expand their XRP stock. This shift in the market could significantly influence the strength and stability of the XRP price.
institutional investors and control over XRP
Farina emphasizes that the demand from large financial institutions according to XRP is growing, while at the same time the trading volume in the order books for XRP has dropped considerably compared to previous highs. He observes a five times lower trading volume, which indicates a decreasing activity of private traders. This reduces liquidity, which means that the remaining XRP holders could benefit from the limited quantities in the event of a price increase.
The combination of a falling number of private investors and an increasing institutional interest could lead to a significant increase in the XRP price in the near future. A lower available supply in conjunction with increasing demand - especially through institutional actors - could trigger a strong price increase.
XRP and digital central bank currencies (CBDCS)
Another important factor for the potential price development of XRP is the growing introduction of digital central bank currencies (CBDCs). Farina argues that the XRP Ledger could serve as a key infrastructure for these new currencies, especially with a view to the planned digital euro, which is to be introduced in 2025.
He refers to successful test runs that have already been carried out in countries such as Montenegro with the XRP Ledger. Farina is convinced that the implementation of these CBDCs, in particular the digital euro, could significantly increase the price of XRP.
In addition, he draws parallels to the course development of Stellar (XLM) after the announcement of a CBDC in Ukraine and sees similar options for XRP.
conclusion: challenges and opportunities in the XRP market
In summary, Farina assumes that XRP could possibly exceed Ethereum in the coming months, especially in view of the below -average price behavior of Ethereum compared to other old coins. He notes that the XRP course could achieve prices of $ 100 or even $ 1,000 under the right conditions. However, he also emphasizes that the path for private investors will remain challenging in view of the increasing market control by institutional investors and financial burdens from inflation.Overall, Farina's forecasts indicate that the XRP market is in a crucial phase that has both risks and opportunities.