In recent weeks, there has been a surge of bullish predictions for the XRP price, with one forecast standing out among the rest. Lord XRP, a pseudonymous crypto analyst and XRP maxi, presented a scenario that suggests XRP could reach a staggering price of $10,000. This would place the altcoin in the same league as cryptocurrencies like Bitcoin and Ethereum. While such an outcome may sound appealing to XRP enthusiasts, it is essential to critically analyze the feasibility of such a prediction.
Considering that Ripple, the company behind the XRP token, aims to disrupt the payments sector using blockchain technology, it is not surprising that comparisons have been made between XRP and traditional payment processing companies. The XRP market cap has been juxtaposed against dominant players in the finance industry, such as Western Union and SWIFT. These comparisons emphasize Ripple’s ambition to enable faster and cheaper transactions, serving as a bullish case for the XRP price.
To illustrate this point, a chart showing XRP’s all-time high market cap of $30 billion in 2018 is juxtaposed with the transactions conducted by payment giants such as Western Union ($80 billion) and SWIFT ($5 trillion). The chart also highlights the substantial figure of $577 billion, representing the global annual value of non-cash transactions. Lord XRP believes that if Ripple manages to capture a significant share of this payments market, the XRP price could potentially soar to $10,000 per token.
While Lord XRP’s prediction of a $10,000 XRP price is unparalleled, other market participants have also made extraordinarily bullish forecasts. Shannon Thorp, a Wells Fargo Manager, predicts that XRP could reach $500 as Ripple gains more market share in cross-border payments. Despite these optimistic projections, it is crucial to assess their feasibility based on the fundamental characteristics of XRP.
When evaluating the plausibility of a $10,000 XRP price, one must consider the token’s supply. With a total supply of 100 billion XRP, a price point of $10,000 would translate to a market cap exceeding $100 trillion. However, it is important to note that the overall cryptocurrency market cap currently stands at only $1 trillion. Even the market cap of gold, an unlimited resource, reached only $12.7 trillion by the end of 2021. Bitcoin, the pioneering cryptocurrency, achieved a peak market cap of $1.27 trillion during the 2021 bull market.
For a $10,000 XRP price to become a reality, there would need to be a burn mechanism in place that significantly reduces the token supply over the next few years. Although this hypothetical scenario would make such a price point possible, the absence of a burn mechanism, coupled with the substantial supply still available, makes a double-digit XRP price an unrealistic expectation.
While the XRP community may be thrilled by the prospect of a $10,000 price, it is important to differentiate between wishful thinking and rational analysis. Given the current circumstances, it would be more realistic for XRP supporters to temper their expectations and focus on tangible developments within the cryptocurrency and blockchain industry.
While the recent surge of bullish predictions for XRP is undoubtedly enticing, the expectation of a $10,000 price per token lacks practicality. The fundamental characteristics of XRP, including its supply and the overall market cap of the cryptocurrency space, render such a scenario implausible. As investors and enthusiasts explore the potential of XRP, it is crucial to approach price predictions with a critical lens and consider the underlying factors shaping the market.