XRP price could witness a substantial spike if the XRP Ledger (XRPL) handles only 10% of broker firm Hidden Road’s daily transactions.
Notably, Ripple recently acquired prime brokerage firm Hidden Road for $1.25 billion, a move that could impact the future of the XRP Ledger and XRP itself.
XRPL Could Handle a Fraction of Hidden Road’s Volume
Speaking on the importance of the acquisition, Ripple CTO David Schwartz stressed that it marks a turning point for the XRPL. According to him, Hidden Road clears over $10 billion in daily liquidity and processes more than 50 million transactions each day.
Ripple’s acquisition of Hidden Road is a defining moment for the XRP Ledger and XRP. The prime broker clears upwards of $10B and processes over 50M transactions a day on various traditional rails, waiting up to 24 hours for those transactions to settle. Now imagine even a portion… https://t.co/xiHdyy30Sm
— David "JoelKatz" Schwartz (@JoelKatz) April 8, 2025
These settlements, mostly delayed by up to 24 hours, could now move to the faster, blockchain-based XRPL. In turn, this development could bring massive efficiency and utility to the financial space and also benefit the blockchain network and its native token.
In response to Schwartz’s comments, media figure and crypto analyst Zach Rector broke down what this move could look like. Essentially, he considered scenarios where 10%, 30%, and 50% of Hidden Road’s daily flows – equivalent to $1 billion, $3 billion, and $5 billion respectively – migrated to the XRPL.
According to Rector’s analysis, if just $1 billion of liquidity were routed through XRPL each day, this would translate to over $300 billion annually. He highlighted that critics once saw this figure as exaggeration. However, it is now becoming a practical benchmark.
However, should the XRPL start processing these figures in daily volume, the impact on XRP price remains unclear. To ascertain this, The Crypto Basic consulted ChatGPT, an AI-powered language model.
XRP Price if the XRPL Handles $1B in Daily Volume
The chatbot presented a hypothetical utility scenario where XRP serves as a bridge asset or collateral within XRPL transactions. Assuming that 10% of the $1 billion XRPL daily volume, about $100 million, requires XRP liquidity, the system would need roughly 50 million XRP daily (at a token price of $2) to support those settlements.
In this scenario, the chatbot explained that as the system uses XRP more frequently in institutional settlements, demand would rise. Over time, liquidity providers and institutions may begin holding XRP in reserve to ensure fast transaction processing.
For instance, if institutions set aside 5 billion XRP for operational purposes, the effective circulating supply would decrease. This reduced float could create upward pressure on XRP’s price, especially if daily demand continues to climb.
The AI projected that if XRP demand reaches $100 million daily and supply is constrained due to reserve holdings, the price could gradually adjust upward. Buyers might be willing to pay higher prices, like $3 to $5, to secure access to XRP liquidity pools.
With higher volumes and deeper institutional integration, prices could rise even further. For example, $200 million in daily demand and 5 billion XRP in reserves might push XRP price toward $5–$10. Meanwhile, at $500 million daily demand, the price could even exceed $10, potentially reaching the $10–$20+ range.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
