- Can XRP Capitalize on the $2.8 Trillion Market Boom?
The XRP community is abuzz with speculation after Ripple’s bombshell announcement: a USD-backed stablecoin launching on the XRP Ledger (XRPL) by year’s end. This move aims to compete with giants like Tether (USDT) and USD Coin (USDC) in the booming stablecoin market, currently valued at over $150 billion and projected to reach a staggering $2.8 trillion by 2028.
Ripple’s Play to Grab a Slice of $2.8 Trillion Market.
The potential market explosion is a major motivator for Ripple. Launching a USD stablecoin directly on XRPL allows them to become a key player in this rapidly growing sector. But the big question remains: how will this impact XRP’s price?
Analyst Predicts XRP Rocket Ride
The announcement has sparked a wave of optimism, particularly regarding XRP’s future. Analysts are scrutinizing the potential impact of a stablecoin on XRP’s value within the XRPL ecosystem. One prominent figure, Rob Cunningham of KWUL Research, even offered a specific price prediction.
Cunningham hinges his analysis on the projected $2.8 trillion market size for stablecoins by 2028, a potential 20-fold increase. Based on this, he estimates XRP could experience a similar trajectory, reaching a whopping $12 within the next four years.
… and projected to SOAR 20x in size by 2028 …
— Rob Cunningham | KUWL.show (@KuwlShow) April 4, 2024
Wouldn’t this imply that 20 x $0.60 = $12/XRP based solely on StableCoin utility in 4 years?
A #XRP facilitated U.S. #StableCoin offers the global architecture, proven operational excellence and is supported by the greatest… https://t.co/jpQkQaGfpB pic.twitter.com/YvEplrJrYw
This optimistic outlook factors in the anticipated surge in utility for XRP due to the stablecoin initiative. Cunningham even acknowledges the possibility of XRP exceeding $12 due to its existing functionalities beyond the stablecoin market.
Not Everyone on Board the Hype Train
However, not all share Cunningham’s enthusiasm. Panos Mekras, another crypto commentator, questions the methodology behind the $12 price target. Mekras argues that Cunningham’s approach assumes a direct correlation between the overall stablecoin market size and XRP’s specific value. He emphasizes a crucial distinction: the $2.8 trillion refers to the entire stablecoin market, not just Ripple’s offering. Additionally, Mekras points out that the funds used for Ripple’s stablecoin are independent of XRP.
Also Read: XRP Poised for Explosive Growth As Analyst Mikybull Predicts 859% Surge
The Verdict: Uncertain Impact but Promising Future
While Mekras raises valid points, it’s too early to definitively say how the stablecoin will affect XRP’s price. An increase in the stablecoin’s issuance doesn’t necessarily translate to a direct XRP price rise. However, Ripple’s initiative highlights XRP’s potential within the broader cryptocurrency market. While the impact of the stablecoin remains to be seen, other ongoing projects suggest a bright future for XRP.
About The Author
