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XRP has been at the center of ambitious price targets, but market participants question its ability to attain some of these levels, citing current supply data.
The crypto market often presents opportunities for investors to transform modest investments to multi-million fortunes overnight. At some point, XRP facilitated a similar investment growth, when it soared from a floor of $0.003 in January 2017 to a peak of $3.31 in January 2018.
This rally marked a 109,899% increase in a year. To put this into perspective, investors who invested $1,000 in XRP at $0.003 essentially procured 333,333 XRP tokens. As the price hit $3.31, the value of these tokens skyrocketed to $1.1 million within a year.
XRP’s Historical Performance Fuels Optimism
Due to its historical performance, several new investors who enter into the XRP market might expect a similar performance, especially amid prevalent ambitious price targets. Some older holders could also be looking to relive the previous rally.
This optimism has stood on predictions of audacious price targets for XRP. Market watcher Armando Pantoja argued last month that $100 for XRP is feasible. Other projections have set targets of $300 to $500. However, many have dismissed these, citing supply concerns.
For context, XRP currently has a circulating supply of 57.1 billion tokens, with an inflation rate of about 200 million tokens every month. With this circulating supply, XRP now boasts a market cap of $140 billion as its price trades at $2.45, making it the third-largest crypto asset in the market.
XRP Market Cap at Varying Price Targets
A rally back to its all-time high of $3.31 would push XRP to a market cap of $189 billion. Further, if it captures the more feasible target of $6, its valuation would reach $342.6 billion, while a more substantial price of $11 would allow XRP hit a market cap of $628 billion, above Ethereum’s current valuation but still within reasonable levels.
However, the XRP market would require an exponential surge in capital inflow to even attain $100, much less $300 or $500. For context, a $100 price per XRP would translate to a market cap of $5.7 trillion, exceeding the current global crypto market cap of $3.63 trillion by a mile.
Further, for XRP to claim a $300 value at the current circulating supply of 57.1 billion, its market must attract a total capitalization of $17.13 trillion, rivaling Gold’s market cap, which currently sits at $17.9 trillion. Notably, Gold is the single-largest asset by market cap globally.
Meanwhile, the $500 price target would present the biggest hurdle. XRP would need to command a market valuation of $28.5 trillion for its price to reach $500 with the current supply. This would mark the largest market cap for a single asset in the recent history.
Can XRP Hit $100, $300 and $500?
These assessments confirm that with the current market conditions, XRP might not be able to claim the $100, $300 and $500 price targets except there is a drastic change in market dynamics. However, lower goals like $6 and $11 are readily attainable.
Despite this challenge, analysts at Changelly believe XRP could hit these lofty targets in a few decades. Although they expect XRP to drop below $1 next year, they predict a subsequent exponential growth. These analysts see XRP hitting $100 and $300 in 2040 and eventually claiming $500 by 2050, 26 years from now.
