XRP (CRYPTO: XRP) is down 2.5% over the past day but could be setting up for a major catch-up rally, according to a prominent analyst.

XRP's Key Price Target

In a June 1 podcast, analyst Cryptoinsightuk noted that based on prior consolidation zones and liquidity structures XRP could witness a potential move towards the $2.70-$2.80 region.

The thesis centers around XRP reclaiming prior consolidation ranges after sweeping liquidity below support.

He also pointed to heavy liquidity clusters sitting above current XRP price levels.

Cryptoinsightuk highlighted that XLM recently surged roughly 88% from its lows after a utility-driven announcement helped push the token above prior resistance zones on the weekly and monthly time frames.

He believes XRP may now be following a similar path.

XRP Holders Can Generate Yield

Hugo Philion said XRP can generate yield by transforming it from a payment token into a collateral asset through the Flare network.

Philion explained users can move XRP to Flare as wrapped XRP (FXRP), use it as collateral in lending protocols, borrow stablecoins against it and redeploy those funds into yield-generating strategies.

He also outlined a more centralized model where XRP is deposited into vaults and deployed by financial intermediaries into markets to earn returns.

Bigger Picture: ‘Utility Era’ For Crypto

The broader thesis goes far beyond XRP.

Cryptoinsightuk argued crypto is entering an inflection point where tokenization, institutional adoption and blockchain-based finance could fundamentally change how digital assets are valued.

The core argument remains that institutions are increasingly tokenizing assets and traditional finance infrastructure is moving on chain. Crypto valuations may still be dramatically undervalued relative to future adoption

The analyst also suggested the traditional four-year crypto cycle may eventually weaken as real-world utility replaces pure speculation.

"I think we're very close to, if not already, destroying that cycle psychology," the analyst said.

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