Chase, the host of The Bitcoin Express YouTube channel, has offered a grounded perspective on the future potential of Ripple (XRP). Amidst a flurry of high-flying price targets within the crypto community, Chase’s commentary emerges as a voice of reason, particularly addressing the feasibility of XRP reaching unprecedented price levels.
Analyzing XRP’s Market Cap Implications
This Chase’s evaluation directly disproves the lofty projections made by some industry renegades, including a reputable forecast of $500 by a Wells Fargo Treasury Manager, Shannon Throp. The prediction has generated a great reaction among the market players, but the chances for materialization are extremely low, according to a comprehensible analogy with the XRP market cap.
XRP is not going to $1,000.
It’s not going to $589.
It’s not even going to $100.
Even if XRP had the same market cap as Bitcoin today ($1 trillion), then 1 XRP would be worth about $18.
— The Bitcoin Express (@The_BTC_Express) February 15, 2024
To illustrate, if the XRP price was $1,000, it would skyrocket to a phenomenal 54.5 trillion dollars, more than 308 times the current market cap for all cryptocurrencies combined, which is below $2 trillion. On the other hand, the $100 price per XRP still represents a trillion-dollar valuation, which is much higher than the overall market cap of the crypto sector presently.
A Bitcoin maximalist goes even further and situates XRP’s chances of reaching its par with that of a fist full of mung beans on a laughably improbable basis of its immense circulating supply of more than 54 billion tokens. Therefore, the aforementioned supply factor is a very pivotal element for XRP. It checks investors’ position about the price of XRP, as it would make only a $100 value of each token an unbelievable market cap for becoming the total value of all cryptocurrencies together.
The $18 Scenario: A Closer Look
Even though the skepticism of a 14-figure valuation of XRP could potentially cause some people to doubt the credibility of projections, Chase proposes a more plausible theory where XRP could reach a valuation of $18 ($1 trillion XRP market cap) if the Ripple digital currency similar to the one of Bitcoin achieves the market cap of $1 trillion. This projection turns the speech in a different direction, being sober and not very hopeful as compared to the more `can-do` forecasts, which provides viewers with the opportunity to assess this scenario that is still very ambitious but at the same time seems more realistic given the market dynamic today.
The statement of XRP hitting its $18 valuation shows us an ambitious estimate consideration, with the XRP currently trading at $0.55383963. According to the above gross margin computation, to reach the desired $18 price level, progress of 3182% would be needed. The all-around message of this enormous challenge is that the market capitalization and the amount of circulating supply affect the price potential of an asset more broadly.
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