1. The size of China’s real estate market
Estimation of the size of China's real estate market in 2023: According to estimates by various institutions, the market value of China's real estate market is around US$60 trillion (about RMB 420 trillion). This figure includes residential, commercial real estate and land assets.
2. Assuming 1% to 5% of capital flows into EOS RAM
1% capital inflow: If 1% of the capital in the real estate market enters the EOS RAM market, it will be 600 billion US dollars (4.2 trillion RMB).
5% capital inflow: If 5% of real estate capital enters the EOS RAM market, the funds will reach 3 trillion US dollars (21 trillion RMB).
The impact of such large-scale capital inflows on the RAM market will depend on demand conditions and market capacity.
3. Evaluation of the impact of capital inflow on the market value of EOS RAM
Based on the total amount of 390GB RAM and the assumed scale of capital inflow, the RAM market value will rise significantly. We can evaluate the level to which these funds will drive the RAM market value through the assumed price range.
Assumption 1: RAM price is $100/KB
390GB ≈ 390,000,000 KB
390,000,000 KB × $100/KB = $39 billion market cap
Under the assumption of a price of $100/KB, the total market capacity is $39 billion, and even if 1% of real estate capital flows in, it exceeds the current RAM market value. If a large amount of capital flows in, the price is likely to rise significantly.
Assumption 2: RAM price is $500/KB
390,000,000 KB × $500/KB = $195 billion market cap
If the RAM price rises to $500/KB, the total market value will reach $195 billion. This still cannot fully absorb 1% of real estate capitalization ($600 billion), let alone 5% of capital ($3 trillion). Therefore, prices may continue to rise.
Assumption 3: RAM price is $1000/KB
390,000,000 KB × $1,000/KB = $390 billion market value
In this scenario, the price of RAM rises to $1,000/KB and the market value reaches $390 billion. At this point, a 1% capital inflow can basically absorb the market value, and a 5% capital inflow will push up the price even more.
4. Comprehensive assessment: Potential for price increases
Assuming that 1% to 5% of real estate capital enters the EOS RAM market, the specific assessment is as follows:
1% capital inflow ($600 billion): If the initial market price is $100/KB, this capital may push the price up to around $1,000/KB, at which time the RAM market value will reach $390 billion.
5% Capital Inflow ($3 trillion): If 5% of real estate capital inflows, the price could be well over $1,000/KB, potentially pushing the market value to trillions of dollars.
5. Conclusion
Under the assumption that 1% to 5% of traditional real estate capital enters the EOS RAM market, the upside potential for RAM market capitalization is huge. Depending on supply and demand and the amount of capital influx, the price of RAM may rise from $100/KB to $1,000/KB or even higher. In the process:
Market Cap Range: Market cap could grow from $39 billion to hundreds of billions, or even approach $1 trillion in extreme cases.
Capital-driven: A massive influx of capital will further push up market demand and prices, making RAM a highly speculative asset.
The EOS RAM market has the potential to carry a large amount of capital, especially as the decentralized application and blockchain ecosystem continues to expand.
Note: This article only assumes the growth potential of real estate capital after entering the EOS RAM market, and does not constitute any investment advice.