Can XRP Turn $1,000 to $1M? Here are Factors That Could Help

Several factors could trigger an XRP rally capable of transforming investors with modest holdings into millionaire status.

Amid the prevalent market-wide uncertainty, XRP has not fared well, battling to transcend $2. However, market watchers remain optimistic. For instance, analyst EGRAG suggested that the recent declines were just an avenue for XRP to fill its symmetrical triangle formation.

Several other market commentators believe an imminent rebound to new heights is on the horizon. However, short-term targets have been modest, ranging from $4 to $6, all representing new all-time highs. Meanwhile, some investors envision a future where XRP could transform their modest investments into fortunes.

These expectations typically factor in long-term price projections that could see XRP hit two to three-digit prices. Interestingly, several factors could trigger such projections. The Crypto Basic recently evaluated the possibility of some of these factors helping XRP transform $1,000 to $1 million.

XRP in US Strategic Reserve

Notably, the first factor into consideration is the inclusion of XRP in a U.S. digital asset reserve. For context, President Donald Trump signed an executive order mandating the creation of a Working Group on crypto. 

One of their duties is to evaluate the possibility of creating a strategic “digital asset” reserve for the U.S. However, in an interesting twist, some industry leaders have suggested that XRP could be one of the assets considered for this reserve. Should this happen, we asked ChatGPT about the possible price implications.

In its response, the AI chatbot assumed that the government could allocate about $500 billion to procure XRP for the reserve. Should this occur, ChatGPT predicts that XRP price could reach $27, a price target that EGRAG has persistently championed.

However, the question remains, at $27, can XRP transform $1,000 to $1 million? Notably, $1,000 invested into XRP today would amass 370 tokens at the current price of $2.7. If XRP price climbed to $27, these 370 tokens would be worth $9,990. While this presents an over $8,000 yield, it is still far from the $1 million target.

XRP ETF Products Attracting 50% of Bitcoin ETF Inflows

Meanwhile, another factor that could catapult XRP’s price to greater heights is a surge in demand for XRP ETF products after their launch. Notably, the U.S. SEC has already acknowledged 19b-4 filings for several XRP ETFs, including products from Grayscale and 21Shares. This has bolstered chances of an approval.

Should these products secure approval and collectively amass only 50% of Bitcoin ETF inflows in their first year, the price implications could be monumental for XRP. For context, Bitcoin ETFs have commanded $39.98 billion in total inflows since January 2024. If XRP ETFs get 50% of this, they could see $19.99 billion in inflows.

Interestingly, market commentator Zach Rector suggested last month that the impact of capital inflows on XRP’s market cap is not always straightforward. However, he found that there is an average multiplier effect of 212x on XRP’s market cap for every $1 in capital inflows. 

Applying this multiplier on $19.99 billion in ETF inflows would add an extra $4.23 trillion to XRP’s market cap. With the current valuation sitting at $156 billion, adding this increase would push XRP’s market cap to $4.393 trillion. Assuming circulating supply remains stable at 57.8 billion, this valuation would translate to an XRP price of $76.

At a price of $76, the 370 tokens procured from investing $1,000 in XRP today would be worth $28,120. This would mark returns of $27,000, but still far from the $1 million mark. Essentially, for XRP to transform $1,000 to $1 million, its price must rise to $2,702, with a market cap of $156 trillion. This is highly unlikely to occur.