The post Cambridge Lecturer Uses 3-Step Framework to Forecast Gains appeared on BitcoinEthereumNews.com.

Phil Kwok, a guest lecturer at Cambridge University, has unveiled a new three-step framework for assessing blockchain networks, which posits that XRP is on its way to a new high. XRP has been one of the biggest gainers since the turn of the year, and analysts say Donald Trump’s inauguration could kickstart the biggest bull rally yet. Phil Kwok, co-founder of the Web3 learning platform EasyA, recently sparked a discussion on X after he proposed a framework that showcases the immense potential of XRP. The Three-Step Process That Showcases XRP’s Potential In the first step, Kwok emphasized the importance of understanding the supply of XRP. He points out inflation and the token launch as the two sources of supply. When the XRP Ledger was launched, a fixed supply of 100 billion tokens was created. XRP cannot create additional tokens, making it deflationary. supply usually comes from 2 sources: 1. when the token is launched2. inflation we wanna watch out for inflation. because it means more tokens coming onto the market each year. and that means selling pressure… — Phil Kwok | EasyA (@kwok_phil) January 19, 2025 However, Kwok highlighted that Ripple was allocated 80 billion XRP,  with the majority of these tokens still in its control. Most of these tokens are held in escrow accounts and released monthly to the market. This supply management affects the market dynamics, creating additional selling pressure. Additionally, Kwok argued that demand, the second step in the framework, is where the token’s value shines. He noted that unlike meme coins such as DOGE, the demand for utility tokens like XRP does not rely solely on speculative buying. XRP’s demand originates from its utility within the XRP Ledger in areas such as transaction fees.  Further, the circulating supply is reduced through the burning of these fees.…

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Filed under: News - @ January 21, 2025 6:25 am