XRP, the world’s sixth-largest cryptocurrency, has found itself in the spotlight again, this time fueled by speculation surrounding the potential launch of a spot-based ETF in the US market. Proponents believe such an ETF could trigger significant capital inflows, propelling XRP’s price to a staggering $23.64, representing a mind-boggling 4,137% increase from its current price of $0.559.
The Bullish Case: A Flood of Funds
Professional game developer Chad Steingraber ignited the discussion by highlighting the stark difference in capital inflows between Bitcoin and XRP. Bitcoin’s recent ETF approval led to daily inflows in the millions, while XRP saw a mere $500,000 over four weeks. Steingraber presented a hypothetical scenario where XRP mirrored Bitcoin’s inflows, specifically focusing on BlackRock’s iShares Bitcoin Trust’s (IBIT) $500 million daily inflow on February 13th.
The Math: From Millions to Trillions
Using the Bank of America’s (BoA) 1:10 capital inflow to market valuation ratio, Steingraber calculated that a sustained $500 million daily inflow for XRP would translate to a $5 billion daily increase in its market cap. This translates to a staggering $105 billion monthly boost, and a mind-blowing $1.26 trillion increase over a year.
Also Read: XRP on Cusp of 7,000% Mega Move? Analyst Says Break Above $0.60 Key, Trade Volume Spikes 28%
The Price Target: $23.64, But Wait…
With a stable circulating supply of 54 billion tokens, this $1.29 trillion market cap would translate to a price of $23.64 per XRP. That’s a staggering 4,137% increase from its current price of $0.559. Sounds too good to be true, right?
While the math might seem compelling, it’s crucial to remember that this is a purely hypothetical scenario. The feasibility of such consistent, large-scale inflows into an XRP ETF remains highly debatable. Additionally, market conditions and broader economic factors can significantly impact these projections.
The Bottom Line: The XRP community’s hopes for a spot ETF are understandable, and Steingraber’s analysis offers a fascinating glimpse into the potential impact. However, it’s essential to approach such predictions with a healthy dose of skepticism. The road to $23.64 is long and fraught with uncertainty, and investors should focus on thorough research and responsible investment strategies.
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