Despite the recent growth in the cryptocurrency market, XRP is showing weak momentum. Let's consider the current position of the token and its potential growth prospects.
Issues with XRP Momentum
XRP has shown weak performance, increasing only by 6.56%, while Bitcoin surged over 11%. The token continues to struggle around the $2.21 mark, yet some analysts remain optimistic about its long-term prospects.
Token Supply Barrier
One way to reduce XRP's market cap at higher price levels could be through decreasing the total token supply. A common proposal has been to burn a portion of Ripple's escrow balance, which currently holds about 36.8 billion XRP. However, Ripple's CTO, David Schwartz, has discouraged this approach, citing negligible price changes in similar instances.
Market Growth as a Key Factor
To achieve a $100 valuation for the token, significant expansion of the entire cryptocurrency market would be required. If XRP's total supply were cut to 63 billion tokens, the resulting market cap would be $6.3 trillion, but this would necessitate the market growing to around $113.33 trillion.
While the notion of XRP reaching $100 is not entirely impossible, it is highly improbable without extraordinary changes in XRP's tokenomics and the overall size of the global crypto market.
