A claim has emerged that XRP’s price repricing could come from institutional liquidity demand rather than speculative demand from individual investors.

On May 30 local time, blockchain media outlet The Crypto Basic reported that a figure in the XRP community, Digital Asset Investor (DAI), said in a recent video commentary that the market misunderstands how XRP repricing could happen.

XRP is currently struggling amid a broader downturn across the cryptocurrency market. XRP is down more than 2 percent this month and has fallen more than 27 percent since the start of the year. As price weakness persists, anxiety among investors has also grown over when and how the long-discussed XRP repricing could actually appear.

Digital Asset Investor said that despite this market mood, he is focusing on the long-term trend rather than short-term price swings. He said he is more interested in raising funds to buy more XRP than whether prices fall, and added he plans to buy more XRP within the next day or two.

He also cited comments by Dom Kwok, co-founder of EasyA, in explaining why the cryptocurrency market has failed to gain traction even on positive news. Kwok pointed to inflation concerns, profit-taking selling after major industry announcements, attention shifting toward artificial intelligence-related investment, and a market structure in which prices drive sentiment as pressure factors. He added that the mood could change if interest rates peak and another major catalyst emerges.

The key issue is the path through which XRP repricing could occur. Digital Asset Investor said many investors look at the CoinMarketCap screen and expect to see prices suddenly surge, but the actual process could differ. He cited the view of a cryptocurrency expert, Charusan, in explaining this structure.

Charusan said expectations that banks would buy XRP at high prices for speculative purposes misunderstand XRP’s role in international payments. He said banks are less likely to stockpile XRP like a long-term holding and are closer to a structure in which they pull in the liquidity needed from the market for large payment processes and use it.

For example, if a bank needs to move $10 billion, it could process the transfer using XRP liquidity instead of relying on existing nostro and vostro accounts. In that process, the system would source the required amount of XRP liquidity from the market, and that liquidity could come from various market participants, including individual holders.

He said XRP secured this way could be settled into fiat currencies such as the Korean won (KRW), Turkish lira (TRY), Japanese yen (JPY), euros and dollars after the transaction is completed almost immediately. Charusan said this structure could make a rise in XRP’s price necessary. He said a higher price deepens market liquidity, makes it easier to process large transactions without price impact, and reduces slippage, lowering financial institutions’ transaction costs.

It was also raised that there is no guarantee such a repricing scenario will unfold in reality. While XRP’s price could rise further, it may not surge sharply as some in the market expect, the warning said. With a claim that institutional payment demand could affect XRP’s price structure, whether it translates into actual price formation is expected to hinge on market liquidity and whether demand materialises.

XRP Times Up Watch The Full Youtube Video Here:https://t.co/NBQYIrmiKc pic.twitter.com/TiJY6nUhDF