Chad Steingraber Theory Outlines How

Chad Steingraber, a professional game designer and a prominent figure in the XRP community, recently updated his theory, originally posted in August 2022, about the potential future price of XRP. Dubbed “The Chad Steingraber Theory,” it presents an intricate roadmap predicting XRP’s journey towards a staggering $20,000 mark.

Central to Steingraber’s argument is the principle of asset scarcity in relation to supply and demand. He explains how scarcity, much like in an auction where numerous bidders vie for a limited asset, can escalate the asset’s value.

“Asset Scarcity, part of supply and demand, is also an issue, like an auction bid where many people are bidding on a limited set of assets that only some of them may own. This can drive up value, it ONLY stops when no one else is willing to pay a higher price,” he notes, underlining how this scarcity could be a driving force for XRP’s valuation.

Steingraber also delves into the realm of market appreciation and ‘phantom money’. He elucidates how the current price of an asset can reflect its anticipated future value, a concept akin to selling the idea of a future desirable house on a valuable plot of land at today’s perceived value. He further introduces the notion of ‘Phantom Money’, indicating that market caps often mirror perceived, rather than actual, invested value.

“Today XRP market cap is $30 billion.. but wait, that doesn’t mean there is actually $30B of money that has been put into XRP. […] There’s far less as the market cap is just a reflection of the current value anyone is willing to pay. Phantom Money, remember?, Steingraber explained.

Drawing parallels with unique and limited assets like the Mona Lisa, Steingraber highlights the perception of value. He points out that value is often ascribed based on uniqueness and societal significance, stating, “The Mona Lisa is valuable because it’s the only one… That value is in our minds.” This analogy serves to emphasize the perceived value of the coin in the cryptocurrency market.

Banks Will Drive The XRP Price To $20,000

Central to Steingraber’s theory is the idea of banks holding XRP as a reserve asset, akin to gold. He explicitly states, “Banks holding XRP, that’s the Holy Grail,” emphasizing the potential shift in how financial institutions perceive XRP. This change would elevate the cryptocurrency’s status, positioning it not just as a transactional cryptocurrency but as a foundational asset in banking operations.

Steingraber envisions a future where banks will create private ledgers for internal operations, necessitating substantial XRP reserves. “Banks will create a Private Ledger and HOLD XRP as a reserve asset like how a central bank will hold Gold as a backing asset,” he explains. This approach to using XRP mirrors the traditional banking system’s reliance on gold, suggesting a paradigm shift in digital asset management.

The theory also highlights the crucial role of liquidity hubs, like Metaco, in this new banking ecosystem. Steingraber points out that these hubs would need to maintain large XRP balances to facilitate transactions between banks. “The LHs also hold a balance of XRP because they ARE the 3rd Party exchange that requires a transfer on the XRPL of the issued IOU Derivative into another IOU Derivative,” he notes, underlining the importance of XRP in this process.

A pivotal aspect of Steingraber’s theory is the ensuing scarcity of XRP in the public market as banks accumulate it. He predicts a significant shift in the public supply, stating, “The circulating public supply of XRP on crypto exchanges is far less than people realize… The banks, when ready, are coming for the public XRP supply and once they have it… IT’S GONE.” This anticipated scarcity is expected to trigger a FOMO among financial institutions, leading to a rapid depletion of XRP’s public availability.

Steingraber’s theory culminates in the projection of a massive increase in XRP’s price, driven by the combined effects of banks treating it as a reserve asset, the creation of private ledgers, the crucial role of liquidity hubs, and the resulting public supply scarcity. He posits a future where the value of the cryptocurrency could skyrocket due to these factors, potentially reaching up to $20,000.

At press time, XRP traded at $0.61406.

XRP price trades below the 0.382 Fib| Source: XRPUSD on

Featured image created with DALL·E 3, chart from

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