Here is Possible XRP Price if XRPL Processes 30% of Hidden Road’s Volume at $1.5T Annually

XRP price could soar to the two-digit region if the XRPL processed just 30% of the volume handled by brokerage company Hidden Road.

Ripple’s recent $1.5 billion acquisition of Hidden Road, a multi-asset prime brokerage, is one of the largest steps it has taken toward expanding its institutional reach.

Notably, the development brings Ripple deeper into the TradFi scene, as Hidden Road facilitates $10 billion in transactions each day. Interestingly, the company’s CTO, David Schwartz, suggested that the XRP Ledger (XRPL) could begin processing a portion of these transactions.

Following this disclosure, media analyst and crypto commentator Zach Rector discussed what kind of effect such a transaction volume might have on XRP price. He proposed several scenarios based on the XRPL handling different percentages of Hidden Road’s daily flows.

According to Rector’s breakdown, if XRPL processed 10%, 30%, or 50% of the $10 billion daily liquidity, it would equate to $1 billion, $3 billion, or $5 billion per day, respectively. On an annual basis, that’s anywhere from $300 billion to over $1.5 trillion.

ChatGPT Presents Foundational Assumptions

However, despite these bullish projections, the actual impact on XRP price remains unclear. This is because transaction volume alone doesn’t guarantee a corresponding price surge, especially in a market where factors like token velocity, supply lock-up, and speculative interest play crucial roles. 

To better understand how a $3 billion daily volume on the XRPL might translate into XRP price movement, we turned to OpenAI’s ChatGPT for a hypothetical assessment.

Interestingly, ChatGPT’s analysis presented some important assumptions. Specifically, the chatbot assumed that XRP would serve as a settlement asset for a substantial part of the $3 billion processed daily through the XRPL and that the token would turn over roughly twice per day. 

For instance, if the XRPL settles $1.5 billion worth of transactions daily using XRP (representing 50% of the $3B volume), then about $750 million in XRP liquidity would be required. With XRP trading at around $2.14, this would mean nearly 350 million tokens necessary in circulation purely for settlement purposes each day.

Further, ChatGPT noted that if institutions begin accumulating XRP to provide liquidity for such settlements, and if this demand represents just 5% of the circulating supply, it could create substantial upward pressure on the asset’s value. 

XRP Price Prediction if XRPL Processes 30% of Hidden Road’s Volume 

The chatbot considered an XRP circulating supply of about 54 billion tokens. With this, a 5% accumulation translates to 2.7 billion XRP being held or locked up, leading to a tightening supply, especially if the network also burns coins over time.

Notably, this scenario, where demand increases while supply tightens, would lead to what ChatGPT calls a “repricing cycle.” The chatbot presented XRP price predictions for the short term (6 to 12 months) and longer term (2 to 3 years).

In a conservative bullish setting for the short term, ChatGPT says XRP price could climb to a range between $5 and $7 due to increased institutional demand and speculation. However, within a more aggressive market environment, XRP could rise to $10 or even $15 within the short term.

Meanwhile, over a longer period of two to three years, ChatGPT believes this volume could push XRP to a price of $20 to $30 or more. However, this is if institutional usage expands, regulatory clarity improves, and Ripple’s ecosystem grows through partnerships by Hidden Road.