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Investors could see their investment of 1,000 XRP tokens skyrocket to $1 million if XRP reaches a lofty price target of $1,000.
XRP has been the subject of speculation over the past few months, mostly due to its current underperformance and projections of an imminent price explosion. While the broader market has reclaimed most of the losses of the previous bear phase, XRP has not recorded a similar price uptrend.
For instance, Bitcoin (BTC), the largest crypto asset, is up 150% since Q4 2023 when the first phase of the bull market kicked off. Within this period, Solana (SOL) has skyrocketed by a massive 679%, while Ethereum (ETH) has witnessed a 126% increase.
XRP’s Underperformance
Meanwhile, XRP has only recorded a meager 0.68% rise since the fourth quarter of last year. This is in sharp contrast to the trend in the rest of the market, where the global crypto market cap has surged by 133% since Q4 2023, having added $1.5 trillion within this timeframe.
XRP’s underperformance has not gone unnoticed by industry commentators. Several speculative theories have pointed to an extended price suppression suffered by the crypto asset. Some suggest that this price suppression stems from the SEC’s lawsuit, which has exerted legal pressure on XRP for over three years.
Another camp believes the price suppression comes from Ripple’s continuous sales of XRP. The Crypto Basic confirmed last month that Ripple sold over 841 million XRP in the first quarter of the year, with its remaining balance slipping below the 45 billion XRP mark. While these sales have persisted, Ripple CTO David Schwartz has clarified why they are necessary.
According to Schwartz, Ripple, being the largest XRP holder, needs to substantially reduce its XRP balance. He argued that these systematic sales are the only avenue through which they can safely reduce their holdings. Despite this, he contends that Ripple’s sales are not responsible for XRP’s underperformance.
Projections of an XRP Upsurge
Interestingly, some market watchers believe this underperformance is just the calm before the storm. They expect XRP to skyrocket by substantial margins when this breakout occurs. Some have projected lower targets, but others expect prices in the three-digit figures region.
For instance, notable community commentators BarriC and JackTheRippler predict XRP to reach $1,000, marking a massive 192,207% price rally. While this forecast seems largely unrealistic, The Crypto Basic confirmed that should it materialize, anyone holding 1,000 XRP, currently worth $516, would see their investments skyrocket to $1 million.
However, according to data sourced by market analytics platform Santiment, XRP addresses holding at least 1,000 tokens have decreased this year, possibly due to the XRP price suppression. These addresses amounted to 870,473 as of Jan. 1. Today, their number has dropped to 860,886.
