Rob Cunningham, a veteran investor and analyst, has conducted a detailed analysis of the potential impact of ETF approvals on XRP's price. His assessments consider the possibility of $17 billion in investment inflows over the next year.
Initial Price Growth Estimates for XRP
Cunningham suggests that inflows from ETFs could amount to $17 billion over 12 months, which could radically change price equilibrium for XRP. With a base price of $3 per token and 5 billion tokens in circulation, there is a likelihood of significant price appreciation.
Price Discovery and Scarcity Mechanics
According to Cunningham, inflows at $3 could theoretically buy 5.7 billion XRP tokens, but the effective availability is only 5 billion. This shortfall will create pressure on the market, pushing prices up to about $3.40. Conditions related to low liquidity will influence price discovery, creating a convexity effect where each additional purchase increases scarcity.
Impact of FOMO on the Market and Price Projections
Cunningham provides conservative price forecasts ranging from $8 to $12 for XRP if ETF inflows unfold as expected. In an aggressive demand scenario, prices could rise to $20-$30. Under severe scarcity, institutional buyers may start competing for limited resources, potentially driving prices above $50.
Cunningham's analysis highlights how ETF applications could shift market equilibrium and provide a catalyst for broader participation in the cryptocurrency market. For XRP holders, this could signal an opportunity for significant price growth in the near future.
