Projections of an XRP rally to $1,896 have emerged within the XRP community as Ripple sets its eyes on the derivatives market, but doubts abound.
The XRP community has been excitedly buzzing following reports that Ripple has joined the International Swaps and Derivatives Association (ISDA). This move has sparked discussions about Ripple’s entry into the derivatives market and its implications for the price of XRP.
Dig Perspectives, a well-known influencer within the XRP community, took to Twitter to express his enthusiasm about the possibilities Ripple’s involvement in the derivatives market could bring for XRP.
In a tweet, he called attention to a projection that XRP’s price could soar to an impressive $1,896.23 per token. However, the projection comes with its share of skepticism and concerns.
Now that #Ripple has joined #ISDA take a look at the possibilities for #XRP Price and adoption. $1,896.23 per #XRP👁️
It`s always been about how much adoption,what Percentage will #Ripple and #XRP get of the remittance/clearing/settling derivatives market? https://t.co/RrbvzBceKU
— Digital PerspectivesPermaBull🪝 (@DigPerspectives) August 7, 2023
Mr. Man, another member of the XRP community, shared the calculation behind this ambitious projection. However, he did emphasize that investors should take the disclosure with a pinch of salt.
He made estimations based on the current market cap of XRP and the assumption that XRP could capture 10% of the derivatives market, which the calculation estimates to be $1 quadrillion.
Per the projection, if XRP processes 10% or $100 trillion of the derivatives market with its current market cap, the price of XRP could increase to $1,896.23. The calculation considered an XRP market cap of $34.9 billion. This figure is now $32.6 billion as of press time.
Critics within the XRP community quickly pointed out flaws in the calculation. The XRP Myth Busters NFT Twitter account raised concerns about the assumption that all the derivatives trades would be made simultaneously with the entire circulating supply of XRP. This unrealistic premise led to doubts about the accuracy of the projection.
That calculation is very flawed. It supposes that all the derivatives trades would be made at the same time with the entire circulating supply of XRP. Nonsense.
In reality you can't even remotely estimate the price of XRP based on any industry that would use it. Too many…
— XRP Myth Buster NFTs (@XRPMythBuster) August 7, 2023
The XRP community’s reactions have been mixed. While some members are cautiously optimistic about the potential for XRP’s price surge, others emphasize the need to consider the many variables that could influence the asset’s value.
Market volatility, regulatory changes, competition from other cryptocurrencies, and the complexities of the derivatives market all play crucial roles in shaping XRP’s future price trajectory.
As excitement continues to brew within the XRP community, investors should approach such projections with a healthy dose of skepticism. While the idea of XRP reaching $1,896.23 is enticing, the reality is far more intricate.
As the crypto landscape evolves, Ripple’s involvement in the derivatives market will undoubtedly have ripple effects on XRP’s value. However, making accurate predictions in the volatile crypto market remains a challenge even the most passionate analysts acknowledge.
XRP is changing hands at $0.6210. For the asset to hit $1,896.23, it must rally by 305,251%. This rate reveals how overly ambitious the projection is. Moreover, XRP’s market cap would soar to over $100 trillion at a price of $1,896 with a circulating supply of 52.7 billion tokens.