xAI’s Grok Shows How XRP Could Hit $30,000 if Ripple Handles $30T in Daily Transactions: Is This Realistic?
The latest beta version of Grok, xAI’s advanced AI model, recently analyzed XRP price potentials if Ripple handles up to $30 trillion in daily transactions.
Notably, the assessment came on the back of a question posed by Majeed, a Saudi Arabian XRP community figure. The question centered on what XRP’s price would need to be if Ripple managed $30 trillion in daily transactions while releasing 1 billion XRP per month from escrow.
I asked Grok this scenario using deep thinking
Ripple release is 1 billion XRP per month
And they have to handle $30 trillion transaction from all the payment mechanism such as swift and target2 …etc
Gave me the result XRP should be $30,000
Per 1 XRPhttps://t.co/CYEU0Sxl9G
— Majeed KSA (@majeed66224499) February 20, 2025
For context, Ripple typically releases 1 billion XRP monthly but only retains 200 million tokens after re-locking 800 million. Meanwhile, speculations around XRP’s potential price explosion should Ripple’s payment service expand have dominated the scene, leading to the recent query from Majeed.
To ascertain the extent of this explosion if Ripple handles $30 trillion in daily transactions, the AI used economic principles to break down the price calculation, leading to a value of $30,000 per XRP under certain conditions.
Grok’s XRP Price Analysis
At the start, Grok sought to fully understand the scenario’s major details. First, it confirmed that the first parameter confirms that Ripple’s payment offering would need to process $30 trillion in transactions every day.
Additionally, Ripple unlocks 1 billion XRP from escrow each month. However, with these parameters, the challenge was to determine what price per XRP would be necessary to support such a massive volume.
To keep calculations consistent, Grok expanded the transaction volume to a monthly basis. With 30 days in a month, the total transactions would amount to $900 trillion monthly, considering the $30 trillion per day figure.
Quantity Theory of Money
Now, to determine XRP’s necessary price, Grok used an economic concept known as the Quantity Theory of Money. This theory states that transaction volume equals the total money supply multiplied by the number of times each unit of money is used within a period.
Applying this to XRP, Grok defined the Transaction Volume to be $900 trillion per month. Further, it noted that the Money Supply is the number of XRP available for transactions. Then, Velocity represents how many times each XRP is used monthly.
Rearranging the equation, Grok set the price per XRP as the transaction volume divided by the product of money supply and velocity.
Calculating XRP Price
Assuming that the one billion XRP released each month was the main supply facilitating transactions, Grok used this number for the calculation. Next, it estimated XRP’s velocity, which depends on how often each token is used.
If each XRP was used once per day, its monthly velocity would be 30.
Using these values, Grok divided the total transaction volume by the product of money supply and velocity. This calculation resulted in a price of $30,000 per XRP.
However, recognizing that XRP is designed for fast settlements, Grok explored scenarios where each token was used multiple times daily. If each XRP circulated 10 times per day, this would increase the velocity to 300 per month.
Using this updated velocity, XRP’s calculated price would drop to $3,000.
Another way to adjust the valuation is by considering the total circulating supply of XRP rather than just the one billion released monthly. If the full circulating supply is used, estimated at 50 billion XRP, the price would decrease.
Under this assumption, XRP would need to be valued at $600 per token to handle the transaction volume.
For another approach, Grok recalculated based on daily figures. Assuming one billion XRP was available for transactions each day rather than per month, and velocity remained at 10 uses per day, the price would still need to be $3,000 per XRP to meet the daily $30 trillion demand.
However, most XRP community members have dismissed the more ambitious $30,000 price, suggesting it is unrealistic. These individuals argue that a rally to a range of $100 to $1,000 is more realistic. Further, the $30 trillion daily transaction is highly improbable. Currently, XRP changes hands at $2.56.
Tags
Latest XRP (Ripple) News Today
XRP Price Prediction