VIEW: XRP IS BEING UNDERESTIMATED BY THE MARKET

By Bayberry Capital

: Deep tide TechFlow

THE MARKET CONTINUED TO MISCALCULATE THE XRP BECAUSE IT DID NOT REALLY UNDERSTAND WHAT IT WAS ASSESSING. IT SEES ONLY A TOKEN, BUT IGNORES THE SYSTEM BEHIND IT。

OVER THE YEARS, THE MARKET HAS BEEN MEASURING XRP USING THE WRONG INDICATORS. DEALERS WERE CONCERNED ABOUT VOLATILITY AND ANALYSTS WERE CHASING NEWS HEADLINES, BUT NEITHER HAD STUDIED THEIR INFRASTRUCTURE IN DEPTH. XRP IS NOT AN ENTERTAINMENT TOOL BUT A FINANCIAL INSTRUMENT DESIGNED TO CONVEY VALUE IN THE GLOBAL SYSTEM WITH PRECISION, FINALITY AND NEUTRALITY. ITS PRICE HAS NOT YET REFLECTED ITS FUNCTION, AS THE WORLD HAS NOT GIVEN THE RIGHT VALUE TO THE FUNCTION ITSELF。

Markets do not yet have the means to assess infrastructure

Infrastructure is always easily misunderstood at an early stage. Investors tend to pursue visible growth while ignoring the root causes underlying it. The same dynamic was observed early on on the Internet. At that time, companies that built routers, networks and data centres had averaged their stock prices, while speculative capital was flowing into Internet companies that had no substantive output。

IT IS ONLY WHEN THESE INFRASTRUCTURES BECOME INDISPENSABLE THAT CAPITAL FLOWS BACK TO THE REAL BUILDERS. TODAY, XRP IS IN THE SAME POSITION. IT IS THE BOTTOM LINE OF THE FUTURE FINANCIAL AGE. THE MARKET SAW A CALM PRICE CHART, WHICH WAS MISTAKENLY CONSIDERED IRRELEVANT. IN PRACTICE, HOWEVER, MARKETS ARE WITNESSING THE SLOW FORMATION OF AN INVISIBLE NETWORK THAT WILL BECOME AN IMPORTANT PILLAR OF GLOBAL LIQUIDITY IN THE FUTURE。

THE REAL FUNCTION OF XRP IS RARELY UNDERSTOOD

THE XRP WAS NOT DESIGNED AS AN ASSET FOR SPECULATION, BUT AS A BRIDGE ASSET LINKING ISOLATED FINANCIAL SYSTEMS. XRP ALLOWS MOBILITY TO MOVE FREELY BETWEEN DIFFERENT CURRENCIES, PAYMENT NETWORKS AND TOKENIZED VALUES. ACHIEVING THIS GOAL REQUIRES BROAD INSTITUTIONAL ADOPTION, CLEAR REGULATORY FRAMEWORKS AND DEEP TECHNOLOGICAL INTEGRATION. THESE PROCESSES NEED TO BE CARRIED FORWARD YEAR BY YEAR, RATHER THAN BEING COMPLETED IN A FEW WEEKS。

THE MARKET CANNOT PRICE THINGS IT DOES NOT KNOW. IT STILL COMPARES XRP WITH SPECULATIVE ASSETS THAT RELY ON NARRATIVE CYCLES, WHEREAS IN FACT THE ENTIRE STRUCTURE OF XRP IS MONETARY RATHER THAN PROMOTIONAL. THE LONGER THE MISUNDERSTANDING LASTS, THE GREATER THE EXTENT OF THE REVALUATION ONCE PRACTICALITY BECOMES THE FOCUS。

Liquidity is different from market sentiment

The path of practicality is completely different from market sentiment. The growth of the mobility infrastructure is quiet and sustained until the critical point of systemic necessity is reached. At this stage, existing supplies will not meet demand and prices will be rapidly adjusted to reflect new practical values。

MOST TRADERS HAVE NEVER SEEN SUCH A SITUATION, AS IT CONTRASTS WITH THE DRIVING FORCES OF THE RETAIL MARKET. THE REAL PROCESS OF ADOPTION IS SLOW, SILENT AND FINAL. WHEN FINANCIAL INSTITUTIONS SETTLE REAL TRANSACTIONS THROUGH DISTRIBUTED SYSTEMS, THIS LIQUIDITY WILL NOT BE LOST, BUT WILL INCREASE OVER TIME. THE STABILITY OF XRP IS NOT A WEAKNESS, BUT A REAL REFLECTION OF ITS CURRENT STAGE。

The supply debate ignored key issues

CRITICS OFTEN USE THE TOTAL SUPPLY OF XRP AS THE SOLE BASIS FOR ASSESSING POTENTIAL, BUT THIS IS NOT THE CASE. WHAT IS REALLY IMPORTANT IS THE EFFECTIVE FLOW OF SUPPLY RELATIVE TO THE DEMAND FOR UTILITY. A LARGE NUMBER OF XRPS ARE LOCKED IN HOSTING ACCOUNTS OR IN LONG-TERM CUSTODY, AND THE ACTUAL CIRCULATION FOR GLOBAL SETTLEMENTS IS MUCH LOWER THAN THE SURFACE FIGURE。

As the volume of transactions expands, the speed of movement increases and the availability of liquidity tightens. This compression of flows, in conjunction with demand growth, produces real price discoveries. This is not speculation, but machinery。

Regulatory framework for practicality

WHILE TRADITIONAL FINANCIAL MARKETS USUALLY TAKE THEIR PRICE FACTORS INTO ACCOUNT BEFORE REGULATION ARRIVES, REGULATION IS OFTEN SEEN AS AN AFTERTHOUGHT IN THE AREA OF DIGITAL ASSETS. HOWEVER, WITH THE LEGAL STATUS OF THE XRP BEING CLEAR, THIS REGULATORY CLARITY IS LANDMARK. IT TRANSFORMS THE XRP FROM A LEGAL RISK TO A COMPLIANCE BRIDGE THAT BANKS AND INSTITUTIONS CAN USE IN PRACTICE。

THE MARKET HAS NOT YET ADJUSTED THIS SHIFT AND STILL TRADES IN THE FORM OF AN XRP AS A MARGINAL INSTRUMENT, RATHER THAN AS A RECOGNIZED FINANCIAL CHANNEL. THIS MISMATCH IS ONE OF THE MOST SIGNIFICANT ASYMMETRIES IN THE DIGITAL ASSET FIELD TODAY。

The coming wave of tokenized values

THE WORLD WAS ON THE VERGE OF A COMPLETELY NEW FINANCIAL ARCHITECTURE, AND REAL WORLD ASSETS WOULD BE RECORDED IN BOOKS. BONDS, NATIONAL DEBT, CURRENCY AND COMMODITIES WILL BE MONETIZED AND EXCHANGED DIGITALLY. THESE SYSTEMS, HOWEVER, REQUIRE A NEUTRAL BRIDGE ASSET CAPABLE OF INTEROPERABLE SETTLEMENT. XRP WAS DESIGNED TO ACHIEVE THIS FUNCTION。

as token transactions expand, bridge liquidity will become the new type of global finance & ldquo; oil & rdquo; the movement of each chain of assets will drive the demand for a neutral clearing medium. this demand is structural and not driven by speculation but by actual needs。

The low profile nature of institutional integration

The real process of adoption is often silent. Ripple and its partners operate in a regulated environment, giving priority to reliability and privacy. Pilot corridors, enterprise solutions and mobility partnerships are often developed in a private environment, tested quietly and scaled up only when functionally perfect。

Retail markets seek open heat, while institutions focus on certainty. The infrastructure being laid today will be reflected in prices only if it becomes a critical part of the operation. And then the market will realize that the silence of these years is actually a process of construction。

Perspective determines recognition

THE DIFFERENCE BETWEEN SPECULATORS AND INVESTORS LIES IN THE ABILITY TO SEE THE PRESENT AND SEE THE FUTURE. THE CURRENT MARKET VALUE OF XRP APPEARS LARGE WHEN COMPARED TO OTHER DIGITAL ASSETS, BUT IT IS INSIGNIFICANT IF MEASURED IN THE PROJECTED SIZE OF GLOBAL SETTLEMENTS, FOREIGN EXCHANGE FLOWS AND MONETIZED ASSETS。

THIS MISPRICING STEMS FROM THE FACT THAT THE MARKET STILL VIEWS XRP AS A TRANSACTION RATHER THAN A CHANGE. IT WAS GIVEN A VALUE SIMILAR TO THAT GIVEN TO OTHER DIGITAL CURRENCIES, RATHER THAN AS A MONETARY INFRASTRUCTURE THAT COULD DRIVE THE MOVEMENT OF TRILLIONS OF DOLLARS GLOBALLY. WHEN THE PERSPECTIVE SHIFTS FROM PRICE CHARTS TO LIQUIDITY MECHANISMS, THE VALUATION MODEL CHANGES COMPLETELY。

XRP IS UNDERESTIMATED BECAUSE THE MARKET STILL SEES IT AS AN EVENT RATHER THAN A SYSTEM. MARKETS ARE NOT YET AWARE THAT THE ACCUMULATION OF VALUE IN THE FINANCIAL ARCHITECTURE IS SLOW, BUT IT WILL ERUPT QUICKLY ONCE IT MATURES。

WHEN A DISTRIBUTED SYSTEM SETTLEMENT BECOMES NORMAL RATHER THAN EXPERIMENTAL, THE XRP WILL NO LONGER NEED PUBLICITY OR DEFENCE, AND ITS USEFULNESS WILL BE SELF-EVIDENT。

at that time, the market would not find a new asset, but would recognize a long-existing asset — — it silently built the foundation for the next generation of value transmissions。