Amid suggestions that Ripple should become an XRP treasury firm, we recently analyzed how XRP price could react to this development.
There’s growing talk within crypto circles that Ripple could change its business strategy and become an XRP treasury company, much like what MicroStrategy did with Bitcoin.
Right now, Ripple holds 40.67 billion XRP, or 41% of the total supply, worth around $122 billion. Interestingly, this is more than MicroStrategy’s Bitcoin holdings, which stand at 628,791 BTC valued at about $72.6 billion.
If Ripple shifts its focus toward holding XRP instead of selling, it could have an impact on XRP price. To assess this, we asked both ChatGPT and Google Gemini to run price projections based on the idea.
ChatGPT Estimates XRP Price if Ripple Becomes an XRP Treasury Company
In its response, ChatGPT presented several bullish outcomes. In one scenario, XRP becomes a global reserve asset for cross-border payments. The global market for these payments is worth about $150 trillion each year.
Notably, if XRP secures just 1% of that as reserve capital, it could push XRP’s market cap to $1.5 trillion. This would place XRP at $25.29 per token when divided by the 59.3 billion supply.
Meanwhile, another projection focused on institutional demand. If Ripple’s pivot leads to large-scale buying from banks, funds, and corporations, similar to what happened with Bitcoin in 2020 and 2021, XRP’s market cap could grow to $2.5 trillion. This would take the price to $42.15.
Further, ChatGPT also modeled a scenario where XRP replaces nostro and vostro accounts as the global bridge currency. These accounts currently hold around $27 trillion in idle liquidity. If XRP captures just 10% of that, it would add $2.7 trillion to the ecosystem, pushing prices to $45.53.
However, in a more conservative case, ChatGPT suggested that Ripple lock its entire 40.67 billion XRP stash for 10 years, which would remove all doubts about future supply.
If the market sees XRP’s supply as permanently capped at 59.3 billion tokens, that could double the price from $3 to $6 based on sentiment alone. With additional momentum and possible inclusion in ETF products, the market cap could climb to $550 billion, placing XRP between $9.27 and $15.
Google Gemini Projects XRP Price if Ripple Sets an XRP Treasury
Meanwhile, Google Gemini was more cautious in its projections. Gemini considered what would happen if Ripple permanently removed its 40.67 billion XRP from circulation. Under that condition, the market would spread the same $300 billion valuation across a smaller supply, raising the price to $5.06 per token.
Moreover, Gemini also looked at a potential “MicroStrategy premium.” It suggested that if the market treats Ripple like a treasury-focused firm and adds a 50% premium to its valuation, the market cap could jump to $450 billion. With the full 100 billion XRP supply, that would set the price at $4.50.
However, in a highly optimistic scenario, Gemini suggested that XRP gains a new image as a scarce, institutional-grade digital asset. If XRP reaches half of Bitcoin’s $2.3 trillion market cap, its price would hit $11.50. If it matches Bitcoin completely, the price will double to $23, considering the total supply.
Growing Adoption of XRP for Company Treasuries
Notably, in addition to the prospect of Ripple’s adoption, other firms have been establishing XRP treasuries. In July, Nature’s Miracle Holding Inc. was the latest to announce plans to invest up to $20 million into an XRP treasury strategy.
In addition, Trident Digital Tech Holdings had disclosed a $500 million commitment, and Webus International added another $300 million. Companies like VivoPower International and Wellgistics Health are also building XRP reserves.
Amid this run, Bitwise CEO Hunter Horsley questioned if Ripple might fully become an XRP treasury company within a year. He noted that more companies could start holding XRP, which would tighten supply and naturally push prices higher.
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.
