As XRP continues to hover around $0.55, its price performance has been lackluster, with declines evident across weekly, monthly, and even yearly charts. Despite this, some in the cryptocurrency community still believe XRP could one day achieve a value of over $100. A prominent financial advisor, known in the crypto space as Whiplash, recently outlined a speculative scenario in which XRP could reach $125 per token.
The Mathematics Behind The $125 Price Point
In a post on the social media platform X, Whiplash shared his thoughts on how XRP could potentially attain a $125 value. His calculations are based on the assumption that XRP could one day handle a significant portion of the global foreign exchange (Forex) market’s daily trading volume.
The Forex market, which is one of the largest and most liquid markets in the world, saw daily trading volumes reach approximately $7.5 trillion in April 2022. Whiplash speculates that if XRP were to facilitate a substantial part of this transaction volume, its value could theoretically climb to $125 per token.
To arrive at this figure, he divided the total Forex market volume by XRP’s circulating supply, which is around 60 billion tokens. According to Whiplash’s calculations, for XRP to have enough liquidity to process a $7.5 trillion market volume, the token would need to be worth at least $125.
The Implications for XRP Holders
Whiplash’s scenario, while intriguing, raises several questions. Notably, the entirety of XRP’s supply is not controlled by a single entity, which complicates the assumption that all of XRP’s tokens would be used for Forex transactions. Moreover, the idea that XRP alone could handle the entire Forex market’s volume is highly speculative, as other players and assets are involved in global currency trading.
Despite these challenges, Whiplash suggests that XRP holders could still benefit significantly if the token’s value were to rise. He proposes that instead of selling their XRP at these high valuations, holders could stake or loan their tokens to facilitate transactions, potentially earning substantial returns. For instance, if XRP were valued at $100 per token, owning just 1,000 XRP could theoretically yield $100,000 per day from staking, assuming an improbable 100% return rate.
A Speculative Future
It is important to note that Whiplash’s calculations are based on a series of highly optimistic assumptions. The scenario he presents assumes a level of XRP adoption that has not yet been seen and may never occur. Additionally, the notion that XRP could process the entire Forex market’s volume is dismissed by many as unrealistic.
Also Read: Can XRP Reclaim Its 2017 Glory? XRP Hawker Predicts 5,540% Surge – Targets $32 by November?
Critics argue that while such speculation fuels excitement, it is crucial to approach these predictions with caution. The reality is that XRP’s current price and market dynamics do not support these lofty valuations, and the path to such a future would require unprecedented shifts in both the cryptocurrency and global financial landscapes.
Nevertheless, Whiplash’s analysis highlights the ongoing interest and optimism surrounding XRP, even in the face of its current market performance. As with all investments, especially in the volatile world of cryptocurrency, it is essential to consider the risks and uncertainties before making any decisions.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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