XRP has found itself at the center of ambitious price targets, but market participants are skeptical about its ability to reach some of those levels, citing current supply data.
The cryptocurrency market often provides investors with opportunities to turn modest investments into multi-million dollar fortunes overnight. At one point, XRP facilitated a similar investment rise when it skyrocketed from a low of $0.003 in January 2017 to a peak of $3.31 in January 2018.
This rally marked a rise of 109,899% over the year. For comparison, investors who invested $1000 in XRP at $0.003 essentially acquired 333,333 XRP tokens. When the price reached $3.31, the value of these tokens soared to $1.1 million within a year.
Historical performance of XRP instills optimism
Due to its historical performance, several new investors entering the XRP market may expect similar returns, especially against the backdrop of prevailing ambitious price targets. Some older holders may also wish to relive the previous rally.
This optimism was based on bold target price forecasts for XRP. Market observer Armando Pantoja stated last month that $100 for XRP is achievable. Other forecasts set target prices ranging from $300 to $500. However, many dismissed them, citing supply issues.
For context, XRP currently has a circulating supply of 57.1 billion tokens, with an inflation rate of about 200 million tokens per month. With this circulating supply, XRP now boasts a market capitalization of $140 billion, as its price trades at $2.45, making it the third-largest crypto asset in the market.
Market capitalization of XRP at various target prices
A rally back to its historical high of $3.31 would push XRP to a market capitalization of $189 billion. Additionally, if it reaches a more realistic target of $6, its valuation would reach $342.6 billion, while a more significant price of $11 would allow XRP to reach a market capitalization of $628 billion, which is higher than Ethereum's current valuation but still within a reasonable range.
However, the XRP market will require an exponential surge in capital inflow even to reach $100, let alone $300 or $500. For context, a price of $100 for XRP would imply a market capitalization of $5.7 trillion, which far exceeds the current capitalization of the global cryptocurrency market at $3.63 trillion.
Moreover, for XRP to claim a value of $300 with the current circulating supply of 57.1 billion, its market would need to attract a total capitalization of $17.13 trillion, comparable to the market capitalization of gold, which currently stands at $17.9 trillion. Notably, gold is the largest asset by market capitalization in the world.
Meanwhile, a target price of $500 would represent the greatest hurdle. XRP would need to achieve a market valuation of $28.5 trillion for its price to reach $500 at the current supply. This would mean the largest market capitalization for a single asset in recent history.
Can XRP reach $100, $300, and $500?
These estimates confirm that under current market conditions, XRP may not be able to claim target prices of $100, $300, and $500 unless a significant shift in market dynamics occurs. However, lower targets such as $6 and $11 are easily achievable.
Despite this issue, Changelly analysts believe that XRP can reach these high targets in a few decades. While they expect XRP to fall below $1 next year, they predict subsequent exponential growth.
Analysts predict that XRP will reach the $100 and $300 marks by 2040, and by 2050, in 26 years, it will reach the $500 mark.