XRP News Today: XRP Price Could Surge 4800% If XRPL Captures 10% of Derivatives Market

XRP, the cryptocurrency associated with the XRP Ledger (XRPL), has the potential to see its price surge to unprecedented levels if the XRPL captures a significant portion of the global derivatives market. Currently, XRP has been trading around the $2 mark, with its price at $2.18. Despite this stagnation, many analysts remain optimistic about its future, citing its growing use in cross-border payments and its potential to disrupt the derivatives market, which is estimated to be worth as much as $1 quadrillion.

To understand the potential impact on XRP's price if the XRPL captures 10% of the derivatives market, an analysis was conducted using ChatGPT. The AI chatbot explored several scenarios based on XRP's total supply of 99 billion tokens. In the first approach, a direct market cap model was used, assuming that XRP absorbs the entire $100 trillion into its market value. This would result in a projected price per XRP of around $1,010. However, this figure is considered unrealistic as it assumes XRP becomes the sole store of value for all transactions, which is not aligned with the current functionality of the XRPL.

In the second approach, a collateralization model was considered. In this scenario, XRP would serve as collateral for financial products on the XRPL, similar to how Ethereum supports various DeFi platforms. If 1% of the $100 trillion, or $1 trillion, gets locked in XRP, the price would rise to about $10.10. With 5% locked, it would jump to $50.51. If 10%—or $10 trillion—ends up in XRP as collateral, the price could hit $101.01. This model is seen as more feasible, especially if the XRPL expands to support smart contracts and synthetic assets, which Ripple is already exploring.

The third model used the Network Value to Transactions (NVT) ratio, which compares a crypto asset’s market cap to its transaction volume. Assuming the XRPL processes $274 billion daily, which adds up to $100 trillion annually, the chatbot tested average NVT ratios of 30, 50, and 100. Based on these numbers, XRP’s market cap would range from $8.22 trillion to $27.4 trillion. That puts XRP’s price between $83.03 and $276.77, depending on how efficiently the network supports transactions relative to its value.

In summary, while the direct market cap model suggests an unrealistic price of $1,010 per XRP, the collateralization and NVT models provide more plausible scenarios. The collateralization model indicates that XRP's price could range from $10.10 to $101.01, depending on the percentage of the $100 trillion locked in XRP. The NVT model suggests a price range of $83.03 to $276.77, based on the efficiency of the network in supporting transactions. These analyses highlight the potential for significant growth in XRP's value if the XRPL captures a substantial portion of the derivatives market.