Software engineer Vincent Van Code (@vincent_vancode) posted an intriguing statement recently. He wrote, “The price of XRP is set by its VELOCITY.” He noted that understanding this requires research and admitted it took him some time. What Velocity Means in This Context Building on his analysis of how XRP can reach $300 , computer engineer CharuSan XRP (@CharuSan83) expanded on the idea. He addressed what he called “one of the biggest misconceptions in the XRP ecosystem right now.” The misconception centers on speed and circulation. Velocity, in this context, does not mean a single XRP token changes hands hundreds of times per day. The actual process involves a bank converting local fiat currency into XRP, the transaction validating on the XRP Ledger within 3-5 seconds , then converting back into local fiat on the receiving end to settle into the final account. CharuSan notes this cycle is “not instantaneous as commonly assumed.” Banking windows and correspondent bank approval processes add time to each cycle. Actually the price of XRP is set by its VELOCITY. Took me a minute to understand that, but the journey is well worth it. I can only tell you the destination, your research will uncover what this truly means. https://t.co/JuLtayZiB9 — Vincent Van Code (@vincent_vancode) May 29, 2026 The Physical Ceiling on Velocity Global payment volume surges at specific hours, particularly when major financial markets overlap. The New York and London windows running concurrently produce peak transaction demand. The constraint here is physical, and the same token cannot occupy two different payment corridors simultaneously. CharuSan notes that this limits the realistic velocity coefficient to a maximum of 10 on a macro scale. That ceiling matters when calculating how much value XRP must carry to settle global transaction volume . If the token moves more slowly than theoretical models suggest, each token must carry more value per cycle. The price, therefore, reflects that load. We are on X, follow us to connect with us :- @TimesTabloid1 — TimesTabloid (@TimesTabloid1) June 15, 2025 Why a Low Price Breaks the System CharuSan explained that $10-$20 would “trigger massive slippage, making the entire system completely unworkable.” Slippage occurs when transaction volume exceeds the available liquidity at a given price point. At low price levels, the token cannot absorb the settlement demand placed on it during high-volume windows without significant value loss. This connects velocity to the price in a functional way. The system requires sufficient per-token value to process simultaneous global settlements without degradation. As a result, XRP cannot remain cheap . In this system, XRP’s velocity is not a secondary metric. It is the mechanism through which price is determined. Disclaimer : This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are advised to conduct thorough research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses. Follow us on X , Facebook , Telegram , and Google News The post Software Engineer Reveals What Actually Sets XRP Price appeared first on Times Tabloid .
