Despite the years of lethargy, there is a mantra in the market of digital assets that stoically resists over time: “The price of XRP is undervalued.”
This motto is repeated almost with devotion to its followers, feeding the hope that At some point the Ripple Labs cryptocurrency will make the final leap «to the moon” (to the moon, in Spanish).
Now, who adds to this wave of optimism is the analyst Versan Aljarrah, who assures that “buying XRP at $ 2 is like buying Bitcoin (BTC) to $ 50 but with the usefulness, regulation and infrastructure already established.” In addition, he says: “Volatility is designed to exhaust retail investors, shake weak hands and allow institutions to rearrange before the tokenized infrastructure is completely activated.”
Although Aljarrah’s message aims to highlight XRP’s potential, it is necessary to make some clarifications that show that this has not been so so far. The first thing to point out is that XRP has had historically bassist performance against Bitcoinas seen in the following graph of TrainingView:
With an enthusiasm similar to Aljarrah, there are many Influencers and self -styled cryptocurrency experts that project XRP will reach a price of $ 500.
To understand what this means, it is enough to point out that the market capitalization of the asset exceeds 129,000 million dollars. Market capitalization reflects the total value of a company or cryptocurrency, and is calculated by multiplying the price by the amount in circulation. It is a key metric to understand its weight and relevance within the market.
Taking as an example the prediction of XRP at $ 500 per unit, market capitalization should be 29.37 billion dollars. If this comes true, Ripple’s cryptocurrency would be more valuable than goldas observed in the following image:
It would be exaggeratedly difficult for XRP, to cryptocurrency that still does not have a clear and massively accepted utility, it can be more valuable than gold.
But leaving aside the current price, Ripple has not yet made XRP comply with the eternal promise to become “the cryptocurrency of banks.” That is, an asset designed to solve the problems of the traditional banking systemsuch as commission costs and delays in transfers.
As cryptootics has reported, Ripple has established multiple alliances with financial institutions, although this did not work as a catalyst for the price of XRP. An example of this is the case of Zand Bank and Mamo, two entities based in the United Arab Emirates who began using Ripple Payments, the business solution of payment offered by Ripple.
However, this tool can be operated without using XRP, which reduces the direct demand of the asset, limits its practical utility and weakens the positive impact that expansion ads or new associations could have.
How far can XRP really go?
For Jacobo Maximiliano, Exchange Bitget analyst, the price of XRP could reach a maximum of $ 725. For its part, Crypto Michael, market analyst, projects that the XRP price will be $ 5.80 in the short term. These are two more realistic forecasts than the astronomical figures published in the networks.
This scenario will only be possible If accompany the macroeconomic context. This is because financial speculators prefer a stable environment to invest in risk assets, such as cryptocurrencies. Otherwise, if there is economic uncertainty or geopolitical tensions, they will choose to place their holdings in safer instruments, such as treasure bonds.
Another factor that could boost XRP price is the launch of the bags quoted in the stock market (ETF) in the United States based on this asset. As Cryptonoticias, companies such as Coinshares, Canary Capital, 21Shares, Bitwise, Grayscale and Franklin Templeton, have reported their requests before the Bag and Securities Commission (SEC) to list these financial instruments. At the moment, the organism directed by Paul Atkins did not give a positive or negative response.
In case they are approved, XRP will have more visibility among the most institutional investors, and that could attract liquidity to the Ripple Labs ecosystem. Despite the enthusiasm in the community on the launch, that does not guarantee that it will boost the price of the asset. An example is the case of ETHher ETF (ETH), Ethereum’s native cryptocurrency, which did not yet achieve the performance of Bitcoin’s.
Finally, it is worth mentioning that some companies, such as Vivopower and Trident, are beginning to incorporate XRP into their treasury. This could generate an upward impulse in the price, in addition to strengthening the long -term reserve asset narrative.
