A market pundit has revealed the numbers behind a possible XRP rally to four digits.
While XRP currently trades at around $3.13, some members of the XRP community believe it could eventually hit $100 or even $1,000. While many see those targets as unrealistic, market commentator Zach Rector recently explained how these figures might be possible.
XRP Does Not Need Equal Inflows to Hit Market Cap Milestones
Specifically, Rector addressed these predictions in a recent YouTube video, where he challenged the belief that XRP would need to receive an equal amount of capital inflow to match a $100 or $1,000 price point.
He explained that if XRP hit $100, based on its current circulating supply of 59 billion, its market cap would stand at $5.9 trillion. At $1,000, this number would jump to $59 trillion. Most skeptics argue that XRP would need the same amount of money to flow into it to reach those values. Rector disagreed.
He called attention to the “market cap multiplier,” a concept that shows how inflows don’t need to match market cap growth dollar-for-dollar. According to Rector, the market doesn’t operate on a 1:1 ratio.
Interestingly, he noted that he has tracked XRP’s order books and noticed that the multiplier varies depending on market sentiment.
On red days, when prices drop, he saw the market cap shrink by $900 to $6,700 for every dollar that left the market. Meanwhile, on positive days, like the one following a tweet from former President Donald Trump that mentioned XRP as part of the crypto stockpile, he saw the multiplier hit over 500x.
The Maths Behind an XRP Rally to $100 and $1,000
Using these figures, Rector discussed how much XRP would need to reach $100 and $1,000. Specifically, with a 500x multiplier, XRP would only need about $11 billion in net inflows to hit $100. However, with a more conservative 100x multiplier, it would need around $58 billion.
He pointed out that JPMorgan has already predicted XRP ETFs could bring in $4 to $8 billion in their first year, which shows that $11 billion isn’t far off. He argued that the gap between what’s needed and what’s already in motion isn’t as wide as many think, especially when looking at how much capital flows into Bitcoin and Ethereum ETFs.
For those who still feel skeptical, Rector made a more conservative estimate. Notably, if someone applies a more cautious 50x multiplier, then XRP would need around $116 billion in net inflows to reach $100. Even in this scenario, he sees the goal as achievable.
He then moved to the $1,000 price target. At a 500x multiplier, XRP would need $118 billion in net inflows to reach the $1,000 price. Meanwhile, a 100x multiplier raises that to roughly $589 billion. With a 50x multiplier, the requirement crosses $1 trillion.
Rector Remains Skeptical XRP Could Reach $1,000
Still, Rector didn’t consider this impossible. He clarified that these are not short-term predictions, and he doesn’t expect XRP to reach these levels this year or next. However, he believes the path is there, and that the timing depends on how aggressively money moves into XRP, especially through ETFs.
Rector said the average multiplier he’s currently seeing ranges from 100x to 200x, depending on how intense the buying activity gets. He expects ETF inflows to push XRP into higher territory, possibly using more aggressive multipliers in the early stages.
He called attention to suggestions from ETF analysts who believe XRP-focused ETFs could attract more capital than Solana-based ones. Notably, these comments came from Bloomberg ETF analyst James Seyffart and Bitwise CIO Matt Hougan.
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.
