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Grok, the AI chatbot by Elon Musk’s xAI, has presented a bullish XRP price prediction if the XRPL handles Hidden Road’s entire annual volume.
Ripple’s recent $1.5 billion acquisition of prime brokerage firm Hidden Road has stirred bullish sentiments across the XRP community, but the enthusiasm is not unfounded. Notably, Hidden Road is a major institution within the financial scene, managing an annual transaction volume of $3 trillion.
XRPL Could Handle a Portion of Hidden Road’s Volume
Interestingly, experts have perceived this purchase as one of Ripple’s moves toward expanding its footprint in the institutional finance sector, particularly by utilizing the capabilities of the XRP Ledger (XRPL).
Meanwhile, speaking on the development, Ripple CTO David Schwartz confirmed that a portion of Hidden Road’s transaction volume might be processed through XRPL. This development naturally raises expectations about XRP’s potential utility and, by extension, its market value.
However, despite the bullish outlook, the actual impact of this integration on XRP’s price remains speculative. The community has continued to discuss the scale of adoption and whether the transactional throughput would truly reflect in XRP’s price.
To gain a clearer perspective on this scenario, we tasked xAI’s chatbot, Grok, with presenting an XRP price prediction if XRPL processes the entire $3 trillion volume from Hidden Road. In response, Grok approached the analysis through a set of assumptions, applying the quantity theory of money.
A Set of Bullish Assumptions
Particularly, the foundational assumption in Grok’s model is that XRPL processes the full $3 trillion annually, with XRP functioning as the bridge asset for every transaction. The model assumes a circulating supply of 58.33 billion XRP and a current price of $2.03 per token.
Grok also proposes that institutions or liquidity providers might lock up 10% of the total supply. This will reduce the effective circulating amount to 52.497 billion XRP.
The chatbot also considered velocity. Grok assumes each XRP is used ten times yearly to facilitate transactions, which is a plausible figure for a high-efficiency settlement network like the XRP Ledger.
Based on these parameters, Grok calculates the market capitalization necessary to support this volume. Dividing the $3 trillion transaction volume by the velocity of 10 results in a market cap of $300 billion.
XRP Price Prediction if XRPL Handles $3T Annual Volume
To determine the hypothetical price per XRP, Grok divides the estimated market cap by the effective circulating supply. The result is an approximate price of $5.71 per XRP. However, Grok includes market psychology and speculation by adding a sentiment-driven multiplier.
Now, the chatbot then assumes a bullish environment with strong institutional demand, regulatory clarity, and community enthusiasm. In this context, the model applies a 5x multiplier, pushing the hypothetical price to $28.55. This price represents a 1,299% increase from current levels.
However, despite its bullish nature, Grok’s analysis comes with caveats. The model’s optimistic assumption that XRP will handle 100% of Hidden Road’s settlements may not align with real-world execution. Even partial adoption could massively reduce transactional demand.
Moreover, the velocity of XRP usage directly influences its price: a higher velocity, such as 20, would cut the speculative price in half, while a lower velocity of 5 could double it. Additionally, Grok noted that broader market trends, competition, and potential integration challenges could influence the outcome.