XRP’s potential price surge to $100 is contingent on the XRP Ledger (XRPL) capturing just 1% of the global derivatives market, which is valued at a staggering $10 trillion. The global derivatives market, with its extensive range of traded instruments, is estimated to surpass $1 quadrillion in value. Projections of the XRPL capturing a portion of this market emerged after Ripple joined the International Swaps and Derivatives Association (ISDA), an influential trade association.
Ripple’s entry into the derivatives market through its association with ISDA prompted speculation about its intentions. By leveraging the XRPL, Ripple could generate substantial volume on the network. This increased volume on the XRPL would benefit XRP, the native token of the network, as it would attract more interaction. Quincy Jones, a notable XDC developer, emphasized that XRP’s liquidity on the XRPL could determine its price. According to Jones, market participants would need to use XRP to transact any instruments issued on the network. This liquidity could be derived from the issuance of bonds, debt, and other financial instruments on the XRPL, particularly through tokenization. The derivatives market could also contribute to increased liquidity.
Vandell Aljarrah, co-founder of Black Swan Capitalist, conducted an assessment of the potential XRP price if the XRPL captures a small fraction of the derivatives market, assuming a 1% share. This would result in a volume of $10 trillion. Aljarrah’s evaluation considered XRP’s total maximum supply of 100 billion tokens, leading to a price of $100 per XRP token with a $10 trillion volume. However, it is highly unlikely that this volume would be processed all at once.
Currently, XRP is trading at $0.5203, indicating a 1.11% increase in the last 24 hours. Achieving a price of $100 from this level would require a surge of 19,119%. Despite the ambitious nature of this price target, analysts like Javon Marks have set even higher goals at $200. Such prices would establish new all-time highs for XRP and push its market capitalization to unimaginable levels.
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