There is ongoing debate within the cryptocurrency community about the potential for XRP to reach price levels of $100 and $1,000. Expert Zach Rector analyzes how such targets could be achieved.
Growth of Market Capitalization
In a recent video, Rector examined the mathematical basis for price growth for XRP. Currently, XRP is trading at approximately $3.14, and the idea that achieving a high token price requires proportional amounts of capital has been challenged. For instance, a price of $100 would imply a market capitalization of $5.9 trillion. At $1,000, the value would rise to $59 trillion.
Factors Affecting Multipliers
Rector emphasizes that the assumption that such valuations require equivalent capital inflows is incorrect. He introduced the concept of the 'market cap multiplier,' which describes how the impact of capital inflows on market capitalization is not linear.
Needed Inflows to Reach Key Levels
Rector estimated the capital inflows required to reach specific price levels. Under optimistic conditions with a 500x multiplier, XRP would need $11 billion to reach $100, and for $1,000, $118 billion would be needed at the same multiplier.
While the predictions for price growth are ambitious, Rector underscores that such achievements depend on sustained capital inflows, particularly from institutional sources. Additionally, predictions from financial institution analysts regarding the attractiveness of XRP ETFs may play a significant role in attracting the necessary capital.
