XRP is the third-largest cryptocurrency in the market by market cap. However, it has the lowest price among the top 10 cryptocurrencies with a current price of $0.18. Over the years, XRP enthusiasts have questioned the possibility of the digital asset hitting $10.
There have been some experts who even attempt to access the possibility of the digital asset hitting $100. To be able to access the possibility of XRP going this far, it is important to look at what it may take for the asset to trade at the said price.
Just like any other cryptocurrency, the price of XRP is determined by the size of the market cap in relation to the available supply.
XRP currently has a market capitalization of $8 billion and an available supply of 44 billion. This means the market cap of XRP needs to record an unprecedented run to reach $440 billion to trade at $10.
Be reminded that the highest market cap XRP has ever recorded was a little over $120 billion when its price was at $3.8 with an available supply of a little over 31 billion in January 2018.
For XRP to reach $10, its market cap needs to multiply by around three and a half times to make that price possible. It is worth noting that the market cap increases in response to the many partnership deals and the technological advancements as well as the millennial adoption of its project which is reflected in its price.
When we consider the valuation and diverse speculations of the digital asset, $10 is not a huge task for XRP. However, it may take not less than 2-years for XRP to hit the stated price point. In addition to the analysis above, XRP may likely enjoy the benefits of the ripple effect of Bitcoin to record near this price point. Its previous all-time high was beyond doubt largely affected by the performance of Bitcoin.
The CEO of Ripple, Brad Garlinghouse earlier stated that the cryptocurrency market will be free from worthless assets and their value may fall to zero, leaving those that solve real-world problems to operate.
According to him, XRP solves the plights encountered in Swift transactions, and it’s just a matter of time for people to understand the true worth of the project. XRP may possibly reach $10 in a few years, but for $100, it will have to record a market cap of $4.4 trillion which is a long way to go.
