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XRP price could skyrocket to a three-digit figure if XRP captures a small portion of the derivatives market amid community speculations.
The global derivatives market is one of the behemoths in the financial scene, with industry leaders insisting its valuation runs in trillions. Current estimates suggest its notional value could exceed $1 quadrillion.
XRP Price if It Captures 1% of the Derivatives Market
However, some experts question these projections, arguing that they might overstate the market’s actual size. Nevertheless, even capturing a small fraction of this colossal market could be immensely beneficial for assets like XRP.
If XRP secured just 1% of the derivatives market, using the $1 quadrillion valuation, this would translate to $10 trillion. Notably, with XRP’s total supply capped at 100 billion tokens, a $10 trillion market cap would mean a price of $100 per token.
Interestingly, some market commentators have argued that XRP is capable of hitting the $100 mark. Armando Pantoja contended last month that a $100 price for XRP is possible. In September, crypto analyst Levi said the $100 milestone is “certain.”
Currently, XRP trades at around $2.30, meaning its price would need to increase by over 4,247% to reach this hypothetical $100 level. Achieving such growth over a seven-year timeline would require an annual growth rate of approximately 600%.
XRP at the Forefront of Attention
Speculations around XRP’s entry into the derivatives market emerged amid a potential partnership between Ripple and Bitstamp. Bitstamp, a leading cryptocurrency exchange, plans to launch a derivatives exchange, and Ripple could also get involved in the project.
Furthermore, U.S. trading platform Robinhood is on the verge of acquiring Bitstamp for $200 million. This development might bolster Bitstamp’s capabilities and market reach, allowing it to pursue its derivatives platform.
While some reports suggest the platform might operate on the XRP Ledger (XRPL), a Bitstamp representative told The Crypto Basic months back that it has not confirmed these claims, leaving room for speculation.
In addition to Bitstamp’s potential, Ripple has shown interest in the derivatives market through various initiatives. In August 2024, Ripple joined the International Swaps and Derivatives Association (ISDA), as it intended to enter the derivatives sector.
Additionally, three months back, Ripple led a $25 million funding round for Bitnomial, a derivatives exchange that launched a futures trading platform in the U.S. These developments have further fueled speculation that XRP could capture a portion of the derivatives market.
Possible Drawbacks
As earlier stated, some market observers believe the $1 quadrillion estimate for the derivatives market is inflated. They argue that the notional value represents the total underlying value of all derivative contracts but does not accurately reflect actual economic exposure or risk.
For context, the gross market value of these contracts—representing their replacement cost—is much lower. As of mid-2024, it stood at about $17.1 trillion.