The Road to $100: Here’s What XRP Must Overcome

Despite recent growth in the broader cryptocurrency market, XRP has shown weak momentum. While Bitcoin (BTC) has surged over 11% this week, reaching a new high of $94,671 and approaching the $100,000 mark, XRP has only managed a 6.56% gain. It continues to struggle near the $2.21 level, facing persistent resistance and failing to reflect the broader market’s recovery. Nonetheless, some analysts remain optimistic about the token’s long-term potential, with a few projecting the possibility of the asset eventually reaching a price of $100. Could XRP Realistically Hit $100? Although more conservative price targets, such as $10 and $27, appear more plausible soon, some market commentators have suggested that XRP could reach as high as $100 under the right conditions. Last year, crypto analyst Levi Rietveld expressed strong confidence in this outcome, and more recently, analyst BarriC stated that investors may one day be willing to pay $100 per token. However, this projection raises questions about the asset’s potential market capitalization. The asset has a total supply of approximately 99 billion tokens. At $100 per token, this would result in a fully diluted market capitalization of $9.9 trillion, far exceeding Bitcoin’s current valuation of roughly $1.9 trillion and surpassing the entire global crypto market cap, which currently stands around $3 trillion. Such a figure would even overtake the estimated $22 trillion value of all the gold in the world, casting serious doubt on the feasibility of such a high price. Addressing the Supply Barrier One potential path to reducing XRP’s market cap at higher price levels involves decreasing the total token supply. A commonly proposed solution has been the burning of Ripple’s escrow balance, which currently holds around 36.8 billion XRP, according to XRPScan. Burning this stash would reduce the circulating and total potential supply, potentially leading to higher valuations. Still, Ripple’s Chief Technology Officer, David Schwartz, has discouraged this approach . He points to the 2019 example of Stellar, which destroyed a portion of its token supply without achieving significant price gains. As such, the effectiveness of supply reduction in boosting price remains uncertain. An alternative idea, discussed within the community, involves donating the escrowed XRP to the U.S. government, following former President Donald Trump’s recent remarks about XRP being included in a national crypto reserve. While symbolically impactful, the practical implications of this action on price dynamics are still unclear. We are on twitter, follow us to connect with us :- @TimesTabloid1 — TimesTabloid (@TimesTabloid1) July 15, 2023 Broader Market Growth as a Key Factor Even with a reduced supply, achieving a $100 valuation for the token would require substantial expansion of the entire cryptocurrency market. If XRP’s total supply were cut to 63 billion tokens and reached $100 per token, the resulting market cap would be $6.3 trillion. For XRP to account for just 6% of the total market, the global crypto market would need to grow to around $113.33 trillion. For comparison, if Bitcoin maintained its current dominance level of about 64.5%, it would command a $73.13 trillion market cap in this scenario. Divided across its 21 million coin supply, this would equate to a BTC price of around $3.4 million. Interestingly, this aligns with a forecast made by VanEck in 2024, which predicted Bitcoin could reach $3 million by 2050. While the notion of XRP reaching $100 is not entirely impossible, it is highly improbable without extraordinary changes in XRP’s tokenomics and the size of the global crypto market. Achieving this goal would require a substantial reduction in supply and unprecedented market growth. Until then, more modest price targets remain the most reasonable expectations for the foreseeable future. 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 urged to do in-depth 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 Twitter , Facebook , Telegram , and Google News The post The Road to $100: Here’s What XRP Must Overcome appeared first on Times Tabloid .

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