The price action of Ripple-linked cryptocurrency XRP has continued to confound many crypto spectators

The price action of Ripple-linked cryptocurrency XRP has continued to confound many crypto spectators, with many questioning why it hasn't gone parabolic

The price action of Ripple-linked cryptocurrency XRP has continued to baffle many crypto spectators, with some wondering why it hasn't gone parabolic yet despite its increasing use by institutions.

While XRP has since recovered from its low of $1.96 reached on March 11, the coin remains 30.9% below its all-time high of $3.40.

Why XRP's Performance Remains Lackluster

In a recent X post, Former London fund manager DigitalG shared his thoughts on XRP's current downward trend.

The pundit claimed that XRP's dull price performance stems from Ripple's dual-ledger system. This is in reference to the company's concurrent use of the public XRP Ledger (XRPL) and a private version utilized by banks.

The private Ledger is built on the same technology as the public one and can process thousands of transactions per second (TPS).

According to DigitalG, financial institutions might be buying huge volumes of XRP via the private ledger, which supports Central Bank Digital Currencies (CBDCs) and enterprise use cases.

Compared to the public XRPL, this private ledger operates with limited access by approved entities, controlled visibility, and centralized control by institutions.

DigitalG argues that this disparity could be disguising the true value of XRP, as demand from institutions is not reflected in public exchange prices. However, he believes "some regulators could suggest it is fraudulent to conceal the true price of an asset."

One commentator on X countered this view, suggesting that XRP's price is lagging because a large number of retail investors are holding the coin. In his opinion, XRP "was never really designed" for small retail investors to hold. He further hinted that Ripple will first exhaust retail investors before merging the two ledgers.

In response, DigitalG asked the commentator to envision offloading XRP at $2.30 while its true worth is actually $15,840 — a value that remains hidden from the general public.

Ripple's XRPL And Private Ledger To Converge And Send XRP Soaring

DigitalG also suggested that the private ledger/CBDC ledger and the XRP Ledger will converge on July 14, which could dramatically alter XRP's market fortunes.

The pundit cited a vague reference that claims the Fedwire Funds Services is set to implement ISO 20022 on July 14. However, it's not clear how this relates to Ripple and the XRP Ledger.

When asked to provide more information to support his claims, DigitalG claimed that his source was "rather confident."