XRP Price Prediction $500, $100
Article Coverage: XRP Latest News, XRPL Use Cases, XRP Ledger Differentiators, XRP Price Prediction $100, XRP Price Prediction $500
XRP Price Performance so far
|Last 7 Days||+4.9%|
|Last 1 Month||-5.4%|
|Last 12 Months||+65.3%|
|Since Launch (2014)||+10814.03%|
XRP Price Prediction $500: Latest News
- XRP witnessed a surge after finding support at $0.62. But failing to find enough buyers, XRP failed to break above $0.65 and thereby a price pullback followed taking the XRP price close to $0.62 once again.
- XRP derivatives saw a dip of 26.76% in Long Short Trade Volume to $1.59 billion, indicating reduced activity. Open Interest also fell by 1.40% to $757.44 million. However, Options Open Interest surged by 15.02% to $290.99 thousand, signaling a notable shift in XRP derivative market dynamics.
- XRP’s 24-hour Long/Short ratio hovers around 0.9113, indicating a slight preference for short positions in this timeframe. On Binance, both account-wise (4.4289) and among top traders (4.339 for accounts and 3.3976 for positions) for XRP/USDT, a strong prevalence of long positions is evident. Similarly, OKX shows a notable bias towards long positions with a ratio of 3.21 for XRP.
- Uphold, a popular crypto exchange platform, has launched a self-custody wallet called Vault, enabling users to take full control of their digital assets, including the Ripple (XRP) token. This move signifies a growing trend towards self-custody solutions within the crypto sphere, empowering users with greater autonomy over their holdings.
- Ripple and the Republic of Palau jointly launched a stablecoin pilot in July of this year. As per the Ministry of Finance Republic of Palau, the Stablecoin Program of Palau has completed its first phase.
- The partnership between Ripple Labs Inc. and the Central Bank of Bhutan for the development of a Digital Ngultrum is set to enter its pilot phase in 2024. Commencing back in 2021, Ripple Labs has been actively involved in the early stages of the Bhutan CBDC project. The upcoming phase, spanning from 2024 to 2026 according to the outlined schedule in the Policy paper, marks the continued progression of this initiative.
New Price Targets
XRP Price Prediction $100-Buy or Sell Poll
Net Buy Rating = Buy% – Sell%
- July 1st: 41.6%
- July 13th – Ripple SEC Court Decision
- Sep 1st: 51.0%
- Nov 1st: +44%
- Dec 1st: +56.0%
- Dec 8th: +52.0%
XRP Price Prediction $100: Can XRP reach 100?
Yes, XRP can reach $100 if anywhere between 75 and 90% of the Coins are burnt.
To reach $100, XRP will need to rise 100 times. At $100, XRP’s Market Cap would be $5.2 Trillion. If XRP were to rise at the rate of 25% every year, it would take 22 years to reach $100.
Given this data, let us look at the feasibility of $100
- Quality of Investment – Moderate Quality
- Growth needed to reach $100 – Not Feasible
- Market Cap at $100 – Not Feasible
- The time needed to reach $100 at 25% growth- Not Feasible
Irrespective of the SEC outcomes, it is highly unlikely that XRP will reach $100. XRP’s best chance is a significant burn program that will reduce circulation by 75-90%.
Can XRP reach $500?
No, XRP cannot reach $500 even if a widespread burn program is launched
With a market cap of over $27 B, XRP is the 5th largest cryptocurrency in terms of market cap. XRP had failed to rise higher due to the SEC case against its parent company Ripple. Many bigger exchanges had not listed it due to the ongoing SEC vs. Ripple case. However, that has now changed with the court’s decision in favor of Ripple.
At $500, XRP’s Market Cap will be worth $26 Trillion. That is almost the size of the US Economy today and 30 times the Market cap of Tesla today. In theory, this is feasible but in reality, this looks extremely impractical
- The Global Remittance market size is about $19 Billion and, for argument’s sake, it rises to $200 Billion in say 20 years
- There are too many players in the remittance business and it is likely that with increased competition from Ripple, many will offer the same services. So Ripple could be a market leader with very little share
- Assume Ripple ends with 25% of the market (Highly unrealistic), and it would end with revenue of $50B. Assuming margins of say 50% (Unrealistic again), it would end with $25 B in earnings. This could translate to a price of about $250
In reality, all of these are fantasy projections. Businesses with these kinds of prices have to be highly monopolistic and given cross-country regulations on money transfers, such market shares are likely to be highly unsustainable.
XRP Price Prediction $500, $100 by Analysts and Influencers
When examining the Liquidity Strength (LS) that XRP could potentially offer, the scenario becomes more complex, notes Thorp. A theoretical LS range from $100B to $500B, based on an XRP price range of $1.00 – $5.00, doesn’t account for various variables such as economic growth, the speed of messaging and settling transactions, and the constant, albeit small, burn rate on each XRP transaction.
The traditional SWIFT system, for instance, handles about 44.8 million messages daily, equating to roughly $7 trillion in daily value. Should Ripple capture even 30% of this value, it would manage about $2.1 trillion in daily value. Yet, considerations around transaction size, number of clients, and the limited circulating supply of XRP complicate this theoretical capacity, Thorp adds.
Making an educated price prediction requires an extensive look at many variables. Consideration should be given to the total circulating supply of XRP, the demands of all the banks globally, burnt XRP, and other liquidity considerations. In this view, Thorp suggests a price range of $100 – $500 in the near short term (4 -7 months), based on the need for higher LS to accommodate large transactions, especially for top-tier banks like J.P. Morgan.
Chad Steingraber: Suggests XRP could reach a value of $20K due to its deflationary nature, potential integration into banks’ back-end systems as a reserve currency, and anticipated hoarding by banks, decreasing its public supply and potentially significantly increasing its price.
He outlines the underlying mechanisms that make XRP distinct—limited supply, deflationary nature, and capacity for issuing other assets like IOUs. He also emphasizes the key role of circulating supply in determining the price and distinguishes it from the market cap, which he refers to as “phantom money.”
According to Steingraber, XRP’s On-Demand Liquidity (ODL) feature may not significantly drive up the cryptocurrency’s price. ODL is designed to facilitate cross-border transactions for smaller financial institutions, not necessarily for banking giants like Bank of America or Chase. These major banks are more likely to leverage XRP in private ledgers, thereby maintaining their privacy and security protocols.
Steingraber speculates that banks might start holding XRP as a reserve asset, similar to how they hold gold. In this scenario, institutions like Bank of America could create their own digital coins based on XRP’s ledger. These digital assets would essentially be derivatives of XRP, used internally to track balances in user accounts. Such a move would solidify XRP’s status as a pivotal asset in the global financial landscape.
His most intriguing point revolves around a looming scarcity of XRP. Steingraber argues that as banks and institutional-grade liquidity providers begin to accumulate XRP, the public supply will dwindle. This could lead to a “business dependency,” making XRP a crucial element in the global transfer of money. Steingraber predicts that once institutions fully integrate XRP into their operations, the remaining public supply could become extremely limited, significantly impacting its market value.
Forecasts by Shannon Thorp of Wells Fargo and Chad Steingraber correctly highlight major positives of XRP but the Market Cap projections at $500 and even $100 are completely unrealistic and unattainable. Let us face it, XRP is not Apple or even Tesla both of which have a Market Cap of less than $ 4 Trillion.
XRP Price Prediction $500: Understanding XRP and Ripple in greater detail
XRPL Use Cases
Primary Use Case
- Cross Border Payments
- Decentralized Finance
Secondary Use Cases
Some of the projects and clients using XRP Ledgers are:
- American Express
- Bitpay Payment Processing
- Exodus Wallet and Apps
- BitGo Assets Custody
- Forte Online Gaming
XRP Ledger Differentiators
- Ripple enables financial services through the XRP Ledger and collaborates with traditional financial services companies. XRP is the cryptocurrency that fuels the transactions through the product xRapid(Just like Eth or Matic)
- Transaction Speeds and Costs that are competitive. Traditional overseas payments take days as compared to Ripple which takes seconds.
- XRP uses a consensus protocol with validators swiftly approving transactions. Validators could be Banks and Financial Institutions. Ripple is more centralized than Bitcoin and Ethereum.
- XRP ledger is used to create cryptocurrency wallets and XRP ledger can also be integrated to create a stablecoin.
- Ripple is a more privately owned network as coins are released by Ripple directly unlike Bitcoin where coins have to be mined
- Ripple with its open source and peer-to-peer decentralized platform can be used to transfer money in any form, whether it’s dollars, yen, euros, or cryptocurrencies.
Ripple is currently in talks with more than 20 central banks regarding the development of a Central Bank Digital Currency (CBDC). Some of the countries that have been confirmed to be testing Ripple for their CBDCs include:
Where is the Token XRP Used?
- A Sender (Account) in a Transaction must hold a Minimum reserve of XRP (10 XRP at the moment) – Base Reserve
- XRP Ledger features like Escrow and Payment Channel operate only with XRP
- Owner Reserve is built depending on objects owned by the address and includes – Offers, Trust Lines, SignerList, Escrow, Payment Channels
- XRP can also be used as a bridge in an exchange between two currencies (Auto bridging)
- Addresses must also own XRP to prevent Spam
- XRP is also destroyed during a transaction (Transaction cost)
XRP price is therefore practically influenced by the pace of increase in transactions and the number of new addresses being added to the XRPL Ledger
Top competitors in the payment space include
- XLM Stellar
Top blockchain competitors include
Top 5 Most Read Articles on CrowdwisdomLive
Note: Crowdwisdom360 collates Predictions and data from all over the net and has no in-house view on the likely trends in the Cryptos or Stocks. Please consult a registered investment advisor to guide you on your financial decisions.