The XRP price could soar to a new all-time high if XRP reclaimed just half of its peak market dominance at the current position of the global crypto market.
The cryptocurrency market has grown over the years, rising from just $4.28 billion a decade ago to the current size of $3.28 trillion. This indicates that the broader crypto market has grown by 76,528% over the last ten years, and most of the assets within the market have grown proportionally.
XRP Has Not Grown Proportionally with the Broader Market
However, not all the assets have grown as well as they should, especially considering their positions years back. One such crypto asset is XRP, which has been set back several years by regulatory issues that triggered a wave of delistings in the U.S., the largest destination for crypto investments.
Notably, a look back at historical data shows that XRP commanded its peak market dominance in May 2017, during the impressive price rally at the time. Specifically, by May 17, 2017, XRP’s market cap soared to $15.28 billion. This represented a market dominance of 31.33%, considering the broader crypto market cap stood at $48.78 billion at the time.
On May 17, 2017, Bitcoin had a market cap of around $29 billion, representing a market dominance of 59.45%. Since then, Bitcoin has only grown alongside the broader market, while XRP has not observed a similar growth. Bitcoin’s market cap now stands at $2.132 trillion, a 7,251% increase since May 2017.
Meanwhile, XRP currently has a market cap of $128.8 billion, marking an increase of just 743% from the May 2017 figures. As a result, while Bitcoin’s market dominance has increased to 65.75% at press time, XRP’s dominance is now 3.96%, a massive crash from the 31.33% peak in May 2017.
XRP Price at Half Its Peak Market Dominance
At this position, XRP trades for $2.18, a price at which many consider it massively undervalued. However, what if XRP maintained its 31.33% market dominance now that the crypto market has grown to $3.28 trillion? We recently considered this reality. However, we reduced the dominance by half for a more realistic estimate.
Notably, half of the 31.33% dominance stands at 15.665%. If XRP had a 15.665% market dominance with the broader market at $3.28 trillion, its market cap would sit at $513.8 billion. At this valuation, the price of XRP would rise to $8.7, considering the current circulating supply of 59 billion tokens.
Interestingly, CryptosRus founder George Tung suggested last month that XRP’s realistic target for the end of this year is $8 to $10. However, while the $8 target is a higher valuation for XRP, some community pundits like Xena have insisted that it’s not a major achievement.
Importantly, if instead of reaching half of its peak market dominance, XRP claimed the full figure, the price could reach higher levels. Specifically, XRP’s market cap would reach $1.027 trillion at a 31.33% market dominance, considering the current crypto cap of $3.28 trillion. At this valuation, the price of 1 XRP would hit $17.4.
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.
