XRP could reach the three-digit price region if it claimed a market cap that matches 40% of gold’s valuation.
The crypto market has entered another consolidation phase, expectedly to drag XRP into a range-bound price action. Following a major collapse stemming from the Israel-Iran conflict, XRP has steadied below the $2.2 level but remains above $2.
XRP Sees Bullish Predictions Amid Consolidation
With XRP currently trading for $2.16, boasting a market cap of $127.5 billion, several voices in the community insist that the asset is highly undervalued. Most of these individuals cite XRP’s growing utility in payments, as it offers a cheaper and faster alternative to legacy systems.
These voices have championed ambitious price targets for XRP, ranging from two digits to three digits. For instance, in April, analyst Cryptominder suggested that XRP could surge to $50 in the next five years. Meanwhile, market commentator BarriC believes XRP could reach $100 sooner.
However, these ambitious projections have been met with extreme skepticism among most investors, considering the market cap implications. Amid this difference in opinion, The Crypto Basic recently assessed how high XRP price could get if its market cap matched a fraction of gold’s valuation over the next 15 years, specifically in 2040.
XRP Price if It Matches 40% of Gold’s Market Cap by 2040
Notably, gold boasts a massive market cap of $23.185 trillion, making it the largest asset by valuation globally. If XRP’s market cap reflected just 40% of this valuation, XRP would have a market cap of $9.274 trillion. This is larger than the valuation of Bitcoin at $2 trillion, as well as the global crypto market cap now at $3.28 trillion.
As highlighted earlier, XRP currently has a market cap of $127.5 billion, requiring a 7,173% increase to reach the $9.274 trillion valuation. Interestingly, this translates to a compound annual growth rate (CAGR) of 35%. This indicates that the XRP market cap would need to grow 35% each year to reach the $9.274 trillion mark in the next 15 years.
Meanwhile, with 58.88 billion XRP tokens currently in circulation, the price of XRP would surge to $157 at the $9.274 trillion market cap. Notably, this $157 price by 2040 aligns with predictions from Telegaon. Analysts at the crypto platform predict XRP to trade at a maximum price of $160.34 by 2040.
XRP Price Prediction | Telegaon
Meanwhile, according to previous reports from The Crypto Basic, AI chatbot ChatGPT believes XRP could trade at a much lower valuation of $22 by 2040. However, Google Gemini expects a price of $150 for XRP, aligning with the recent projections and the Telegaon forecast.
Read the full article here
