XRP could see its price skyrocket to unimaginable levels if the XRPL, its underlying network, captures 10% of the derivatives market.
Notably, XRP has hovered around the $2 mark for months, with its current price at $2.18. Despite this lack of movement, many analysts remain bullish. They argue that XRP is significantly undervalued and point to its growing use in cross-border payments.
Some even suggest that the XRP Ledger (XRPL) could eventually play a major role in the global derivatives market, which some estimate to be worth as much as $1 quadrillion. However, how this could impact XRP price remains unclear.
To explore what XRP’s price could look like if the XRPL captured just 10% of that market, roughly $100 trillion, we asked ChatGPT. The AI chatbot analyzed the scenario based on XRP’s total supply of 99 billion tokens and presented several possible outcomes.
XRP Price if the XRPL Captures 10% of the Derivatives Market
In the first approach, ChatGPT used a direct market cap model. It is assumed that XRP absorbs the entire $100 trillion into its market value. Specifically, dividing $100 trillion by the total supply of 99 billion tokens, the projected price per XRP comes out to around $1,010.
Direct Market Cap XRP Pricing Model | ChatGPT
However, the chatbot clarified that this figure extends beyond what’s realistic, as it assumes XRP becomes the sole store of value for all transactions, a role that doesn’t align with how the XRPL works today.
Next, ChatGPT looked at a collateralization model. In this case, XRP wouldn’t need to reflect the full $100 trillion in its market cap. Instead, it 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.
Collateralization XRP Pricing Model | ChatGPT
ChatGPT highlighted this model as a more feasible option, especially if the XRPL expands to support smart contracts and synthetic assets. Ripple is already exploring avenues to introduce smart contracts to the network.
The NVT Approach
Meanwhile, the third model used the Network Value to Transactions (NVT) ratio, a tool that 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.
NVT XRP Pricing Model ChatGPT
Based on those 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.
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