The buzz around a bold prediction that XRP might skyrocket to an astonishing $10,000 per coin has sparked a lively debate in the cryptocurrency arena. This bold claim has fueled excitement and skepticism alike, as experts weigh the factors that could influence such a dramatic price shift for the token.
According to recent reports, this optimistic forecast for XRP stems from potential catalysts like ETF approvals, increased institutional adoption, and its growing role within traditional finance. Yet, not everyone is convinced that such a leap is within reach.
Are ETFs the Magic Bullet?
One argument supporting the lofty $10,000 target is the anticipated impact of XRP-based ETFs. Enthusiasts believe that exchange-traded funds could open the doors for substantial institutional investment in XRP, thereby driving up its price. However, crypto analyst Joshua Jake remains unconvinced, drawing parallels with Bitcoin ETFs.
Joshua Jake recently tweeted his thoughts, questioning the likelihood of XRP reaching such heights. He referenced Bitcoin, noting that while ETFs did enable more institutional participation, they didn’t catapult Bitcoin prices to the dream figure of $1 million per coin. Jake suggests that the same logic applies to XRP: ETFs alone won’t generate the market momentum needed to propel the coin to $10,000.
Jake further elaborated that while ETFs offer greater market accessibility, they primarily facilitate market stabilization and increased resistance levels. Achieving even $30 or $20 per XRP would demand a tremendous influx of value into the market, which remains uncertain.
Challenges of Market Cap
Delving into XRP’s potential market cap raises additional skepticism. Reaching $100 would equate to a $10 trillion market cap, and a mind-boggling $10,000 would mean hitting $1 quadrillion—a figure surpassing the total wealth of the world. Jake calls such projections unrealistic, advising caution.
Some argue that widespread banking adoption of XRP could boost its price astronomically. Jake counters this, pointing to the high competition within the crypto space and the substantial supply of 99.98 billion tokens. Even with token burns, the supply shock necessary for such a price surge appears unlikely.
Drawing Parallels with Bitcoin and Ethereum
A comparison of XRP against heavyweights like Bitcoin and Ethereum also garners attention. Ripple proponents argue that XRP deserves similar valuations despite perceived stagnation in Bitcoin and Ethereum progress. Jake refutes this, highlighting Ethereum’s substantial impact on tokenization and decentralized finance, with a pegged value of $50.75 billion.
Defending Bitcoin, Jake emphasizes its status as a widely-used digital currency, underscoring its role in the carbon credit market and backing from entities like the US government and IMF. He argues that XRP hasn’t yet achieved comparable institutional backing or adoption levels.
As of this writing, XRP was trading at $2.06, marking a 5.6% drop for the day and a 16.2% decline over the week.
Featured image courtesy of Gemini Imagen, chart from TradingView.
