Here’s XRP Price if Its Market Cap Hit 8% of the US M2 Money Supply

XRP price could surge to incredibly higher levels if the crypto asset’s market cap reaches just 8% of the expanding U.S. M2 money supply.

XRP has recently shown signs of strength, climbing back to $2.24 after briefly dipping to retest the $2 level last week. Although the price bounced, it still hasn’t broken past the $3 mark, a level it has struggled with since February. 

Meanwhile, despite five straight months of bearish pressure, XRP has managed to stay above $2, and analysts see this as a sign of resilience. Many believe the $2 zone could serve as a base for a bigger move when market conditions improve.

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US M2 Money Supply Grows: How Could This Impact XRP?

This optimism comes as the broader economy sees a growing money supply. The U.S. M2 money supply, which includes cash, checking and savings deposits, time deposits under $100,000, and retail money market funds, has been rising steadily since December 2023. 

Specifically, current data indicates that the M2 money supply now sits at $21.86 trillion, up 5.3% from December 2023, an increase of over $1 trillion.

Notably, a rising M2 usually indicates more liquidity in the system, which can drive demand for riskier assets like crypto assets. Essentially, when cash is easier to access and interest rates stay low, investors often move some of that capital into markets like crypto, hoping for better returns. 

This extra cash flow can push asset prices higher. However, the trend does not always play out in a straight line. For one, if inflation creeps up too quickly, the Federal Reserve may respond by raising rates or tightening policy. 

This change can reverse the momentum and weigh on crypto markets. So, while more money in circulation can boost assets like XRP, it actually depends on how investors and policymakers react.

XRP Price if Its Market Reached 8% of M2 Money Supply 

Now, with M2 growing, some in the XRP community have begun projecting what would happen if XRP captured just a fraction of that money. Amid the speculation, we recently assessed what XRP price might be if its market cap reached 8% of the U.S. M2 money supply. 

Notably, this 8% portion translates to about $1.748 trillion, considering the current M2 money supply. Such a valuation is much larger than Ethereum’s current market cap of around $301 billion, though still behind Bitcoin’s $2.1 trillion valuation.

For XRP to hit a $1.748 trillion market cap, its price would need to jump significantly. Specifically, with 58.82 billion tokens in circulation, XRP price would need to trade at around $29.73, bringing it close to the $30 figure. 

Interestingly, several analysts have suggested that XRP could reach $30. For one, market commentator Crypto Bulls suggested last month that XRP is programmed to claim at least $30 this cycle. 

Meanwhile, in March, analyst Steph insisted that XRP had already reached its bottom price for the cycle, suggesting a recovery could lead to an upsurge toward $30.