XRP News Today: XRP Market Cap Could Surge 3,000% With $1 Billion Buy Order

A tool designed to model the potential impact of capital inflows on XRP's market capitalization has gained attention in the cryptocurrency market, illustrating how limited liquidity can lead to exponential price movements. Phil Kwok, co-founder of EasyA, introduced the model on X, showcasing how different-sized buy orders could dramatically increase the asset’s market cap through a multiplier effect [1]. The tool simulates scenarios where even relatively small investments can lead to disproportionately large changes in XRP's valuation [1].

At the time of the tool's demonstration, XRP was trading at $2.97, with a circulating supply of 59.3 billion tokens, giving it a market capitalization of approximately $176.1 billion. A $10 million buy order, according to Kwok’s model, could push the market cap to $177.9 billion with a multiplier of 178x [1]. Larger orders produce even more dramatic results. A $150 million buy order could drive the market cap up by $120.4 billion, reaching $296.5 billion, with the price of XRP potentially hitting $5 [1].

The tool highlights how limited order book liquidity can force prices upward as buy orders are filled at increasing price levels, thereby expanding the market cap significantly with relatively modest capital inflows [1]. For example, a $1 billion buy order could elevate the price to $20 and push the market cap to $1.27 trillion [1]. At $5 billion, the market cap might exceed $3.6 trillion, with each token valued at $60, potentially overtaking Bitcoin as the largest cryptocurrency [1].

The most extreme scenario modeled by Kwok is a $10 billion buy order, which could drive the price of XRP to $90, with the market cap surpassing $5.3 trillion [1]. These projections underscore the outsized influence that liquidity constraints can have on digital asset valuations. Kwok has open-sourced the tool, enabling users to test similar multiplier scenarios using real-time market data [1].

It is important to note that these are illustrative scenarios and not financial forecasts. The tool is intended to provide a clearer understanding of how liquidity and capital inflows interact in the XRP market. The views and models presented are for educational purposes and should not be taken as investment advice [1].

Source: [1] XRP Market Cap Multiplier Tool. Here’s How It Works (https://coinmarketcap.com/community/articles/68904eac995da309bf62e023/)