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Here’s Why XRP May Never See $100, $300, or $500

source-logo  thecryptobasic.com 13 h

XRP is one of the cryptocurrencies that holders harbor overly optimistic expectations for, largely due to its unique position in the market.

While XRP currently trades around $2, some analysts speculate about a future where XRP could reach the double-digit range of $10 to $20. This prospect has gained some reasonable acceptance within the community, with some suggesting it could happen by 2025.

Meanwhile, some analysts have even predicted a price beyond triple digits, surpassing $100 for XRP.

Several factors fuel this ambitious outlook, including XRP’s unique position in the crypto market, legal clarity, use cases in the multi-trillion-dollar financial system, institutional adoption, and historical performance.

While some argue that XRP could surpass $100 by 2025, citing historical trends and other factors, these projections often overlook a crucial aspect of the price prediction.

The Supply Conundrum

XRP has a total supply of 100 billion tokens, with nearly 57.3 billion currently in circulation. For XRP to reach $100, its market capitalization would need to soar to $5.73 trillion.

This valuation exceeds the entire cryptocurrency market’s current capitalization of around $3.3 trillion. Similarly, reaching $300 or $500 would require even higher market caps, potentially rivaling or surpassing the total value of global assets like gold, which is currently valued at about $17 trillion.

These figures highlight a key limitation. While the price predictions may generate excitement within the community, the sheer scale of market capitalization required for XRP to achieve these targets is not aligned with current and foreseeable market dynamics.

Even with Ripple’s expanding utility in cross-border payments and partnerships with banks, XRP’s price is constrained by practical factors.

Furthermore, market caps of this scale assume no sell pressure or profit-taking from current holders, which is an unrealistic scenario in an active and volatile market.

So, When Could XRP Reach $100, $300, or $500?

Grok AI estimates that XRP could reach $100 by 2028, assuming improvements in liquidity, partnerships, and regulatory clarity. For XRP to hit $500, Grok AI predicts this milestone could be reached beyond 2030, contingent on widespread adoption in global payments.

On the other hand, ChatGPT forecasts that XRP might reach $100 within five years under an optimistic scenario. In a more conservative scenario, this could happen in 7 to 10 years. As for $500, ChatGPT expects it could take 10 years in an optimistic scenario or more than 15 years in a conservative one.

Meanwhile, analysts at Telegaon suggest that XRP could hit $100 by 2040, which would be 16 years from now. However, they do not foresee XRP reaching $300 or $500 in the foreseeable future.

thecryptobasic.com