Some investors believe that XRP may reach such a price.
For that to happen, XRP market capitalization should be greater than that of gold.
The XRP community, the cryptocurrency issued by Ripple Labs, has reasons to stand firm in the face of market fluctuations.
It is not something recent: for years, a mantra that holds that conviction is circulating among its members: XRP will reach $ 1,000!
The implementation of the exclamation signs seeks to strengthen the character of this mantra, around which there is a constant debate in the Ripple cryptocurrency forums.
Will XRP reach $ 1,000? Apart from the beliefs that XRP investors have, Here it is essential to put a key concept on the table: market capitalization.
The market capitalization of a cryptocurrency indicates its total value in circulation and is calculated by multiplying the price of each unit by the amount of existing currencies. For example, if a currency is worth 2 dollars and there are one million in circulation, its capitalization would be 2 million dollars.
It is a metric to understand the true size of an asset, since the price alone does not reflect its real value. Many exaggerated predictions ignore this simple but essential formula.
For XRP to reach a price of $ 1,000, with an in circulation supply of 59,777,2479 tokens, market capitalization would have to be approximately 59.77 billion dollars (Trillions in English).
If this will be made today, XRP would be more valuable than gold, which gives an idea of what this projection represents.
The debate in the community
On this occasion, the Reddit user who identifies as “Mister_sirr” express His opinion about XRP’s future and stated: «I have been listening to these Youtubers of XRP giving crazy price predictions for years. At first I thought ‘No, impossible’, but it would be great if it happened. Now, today, I think they are not so wrong.
For him, it is possible to see XRP quoting at least two or three digits because an offer shock can be produced, promoted by the launch of XRP stock quoted (ETF) and greater institutional adoption. Anyway, he clarified: “$ 1,000 still seems unreal.”
The user Lost-Childhood7603 put cold cloths to the issue, although some catalysts of the cryptocurrency price appear on the horizon. «There are many illusions and influential people looking for their own benefit. That is, it is possible to get these profits, but it will not be overnight. Let’s see if you can get 3 to 6 dollars first. We do not rush yet. You have to start moving first; Give it a year to reach both digits, ”he said.
For his part, the extenda_sundae_301 user said that “the ETFs alone will raise the price between 5 and 9 dollars.” In addition, he indicated that the incorporation of XRP can be key to the Swift System (World Interbank and Financial Communications Society, in Spanish).
«That would raise the price to a range between 15 and 25 dollars, and once we have current regulations, an adoption chain reaction will begin that none of us can imagine. XRP is preparing for great success. If Ripple gets the bank credentials he needs, we could see something incredible, like three digits. Project a price of $ 500 in the next 5 to 7 years, ”he said.
Here it is important to explain a couple of issues. The first one is to highlight the fact that, although there are price catalysts, none will be able to take the price of XRP to four digits in the short term.
In principle, it must be clarified that The launch of an ETF to the market is important to facilitate access and increase the visibility of XRP Among institutional investors.
As Cryptonoticias has reported, on September 18, the ETF of Rex-OSPrey with exposure to the price of XRP debuted. David Zanoni, financial market analyst, believes that the introduction of this ETF allows investors to obtain XRP exposure without using wallets or exchanges. “Investors can acquire the ETF as if it were an action, from standard brokerage accounts and through individual retirement accounts (IRA),” he adds.
In any case, it should be clarified that these financial instruments are not in spot (in cash), they have a different mechanic and level of real exposure.
The market carefully follows the response by the stock exchange and values (SEC) commission regarding the ETF spot requested by fund managers, such as Grayscale, Bitwise, Canary Capital Group, 21Shares and Wisdomtree.
Inclusion to Swift and the bank license order
In July, Ripple requested a banking license in the United States, which would put the Stablecoin Ripple Usd (RLUSD) under the supervision of the Office of the Mint (OCC). In addition, his subsidiary requested a master account in the Federal Reserve (FED) to guard reservations and operate Stablcoins outside of banking schedule, with the aim of expanding its cryptocurrency services from its banking structure.
The banking license would allow Ripple speed up payments and transfers with RLUSD and smart contractsreducing costs and risks.
John Murillo, B2Broker business director, told Cryptonoticia that this may not be so, because “if most payments are made in RLUSD, XRP’s role could decrease.” Therefore, he clarified that “Ripple must continue to use XRP to connect different currencies while RLUSD manages the dollar side, the network could grow, and also the XRP volumes would do.”
This is important because Rlusd is broadcast on Ethereum and XRP Ledger, whose native currency is XRP. That is, if RLUSD adoption is accelerated, there will be an increase in activity in XRP Ledger and, therefore, greater use of XRP for the payment of commissions. Such fact could boost the price of the asset.
Finally, we must mention the eternal hope that XRP replaces Swift, the global system that allows financial banks and institutions to send information about transactions, although it is criticized for its slowness and high costs. It currently manages 150 billion dollars a year.
However, XRP has not yet been consolidated as the “Cryptocurrency of Banks.” Therefore, instead of replacing Swift, there is now talk about the possibility that XRP integrates into the global payment system.
Brad Garlinghouse, CEO of Ripple, esteem that XRP could capture 14 % of that volume by 2030, which would be equivalent to 21 billion per year or 58,000 million daily in payments.
In this regard, Murillo states: “I am not sure that Ripple can immediately replace it. Integration is more likely, especially because Swift is already testing tokenized payments. Ripple could be a natural connector for that system.”
These catalysts could boost XRP at historically high levels. However, the projection that each currency reaches $ 1,000 is still very distant. Of course it is not impossible. But, contrary to the opinion of some Youtubers and investors, it is very difficult for it to occur in the short or medium term.