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.

XRP price may reach unprecedented heights if payment giants Western Union and MoneyGram start using it for settlements.

Western Union and MoneyGram’s Settlement Volume

Two of the major remittance companies that could leverage XRP for global payments are Western Union and MoneyGram. However, it remains unclear how much the XRP price could rise if these firms adopt it.

So, to explore the potential extent, we asked OpenAI’s ChatGPT. Interestingly, the chatbot responded with two extensive models based on transaction volume, liquidity needs, and investor behavior.

For context, Western Union and MoneyGram move more than $350 billion every year together. Of this figure, $150 billion comes from Western Union and over $200 billion from MoneyGram. These two firms dominate the global remittance market, so any serious adoption of XRP could carry huge implications.

XRP Price if Western Union and MoneyGram Used It

In its first model, ChatGPT assumed that both firms fully adopt XRP for settlement and hold large XRP reserves to support fast transactions. It is estimated that they would need about $4.79 billion worth of XRP as a base reserve, which the broader market would have to support with at least $14.37 billion in circulating liquidity to avoid slippage and delays. 

Then, it factored in the behavior of long-term investors and speculators, using a multiplier of 50. Notably, this is similar to how Bitcoin’s price rose as institutions began to buy and hold the token. According to ChatGPT, under this model, XRP could climb to around $12.

Meanwhile, in the second model, it is imagined that both companies ditch all fiat routes and use only XRP for every transaction. Since real-world transfers involve delays from regulations and liquidity locks, it has reduced XRP’s turnover rate to 1.5 times a year. 

Also, ChatGPT assumed that both companies would hold enough XRP to match their annual volume as a safety buffer. This brought the total demand to $700 billion. Dividing that by the 59.23 billion XRP in circulation, the model gave a base price of $11.82. 

However, with an added multiplier of 8 to reflect market hype, long-term holding, and institutional FOMO, the final price soared to $94.56.

ChatGPT also clarified that these figures only show XRP’s value based on usage by Western Union and MoneyGram. They don’t include demand from other remittance firms, central bank digital currencies, or XRP’s deflationary supply changes. If those materialize, XRP could easily break the $100 mark.

Ripple’s Dealings with Western Union and MoneyGram

Interestingly, Ripple has already worked with both companies in the past. Back in 2019, it struck a deal with MoneyGram that allowed the remittance firm to use Ripple’s xRapid product to settle cross-border payments. 

Ripple even invested up to $50 million in MoneyGram’s equity. However, after the U.S. Securities and Exchange Commission filed a lawsuit against Ripple in 2020, MoneyGram paused its use of XRP and ended the partnership in early 2023.

Meanwhile, Ripple’s history with Western Union dates back to 2015, when the company tested Ripple’s tech as part of a pilot project. At the time, Western Union explored using xRapid and XRP to improve its payment systems. However, the company never moved forward with full adoption.

Leading voices in the XRP community are pushing back against the persistent complaints about XRP’s supposed lack of price movement.

In a tweet, crypto researcher Anderson expressed frustration with investors complaining about XRP’s price action. At the time of the post, XRP’s 24-hour performance was bearish, dipping to exactly $3 before bulls rescued it from breaching this psychological level.

Wednesday’s fall added to the frustration of those already complaining about the coin’s stalled bullish momentum since it touched $3.66 two weeks ago. Amid the dip, some traders disclosed new short positions on XRP, dampening hopes for an imminent price recovery.

Instead of Complaining, Look How Far XRP Has Come

However, Anderson believes the anxiety about XRP’s price performance is misplaced. He reminded market participants that the coin traded at just $0.5 eight months ago in November. Despite this over 6X increase in price, widespread complaints about its performance persist.

Anderson shared the view that many are hunting for overnight riches with XRP and lack the patience to hold for even a few months. Instead, they complain about a lack of movement, despite the coin ranking among the best-performing crypto assets in recent times.

Reacting to the post, other community members attempted to explain typical frustrations about XRP’s price action.

Some pointed out that the complaints come from comparing XRP to other trendy assets like Bitcoin and Ethereum, which dominate headlines. However, a close comparison over a five-year scale shows XRP leads these assets in return on investment.

Meanwhile, commentators like King Karan suggested that those complaining about XRP now may be investors who bought around $2 and haven’t secured life-changing gains like those who bought much lower at $0.5.

XRP Investors Frustrated Due to Too Much Moon Hype

Meanwhile, X user Theophilus pinned the blame on the XRP community itself. He pointed out that those frustrated with their investment listened to influencers claiming that millionaires would be made in XRP during this bull run.

He stressed that such expectations lead to disappointments, warning market participants against listening to influencers who inflate hopes unrealistically. X user Sasha Banichek agreed that many bought on “hopium,” adding that he is even one of them.

Indeed, wild XRP price predictions are a common theme in the crypto sphere, with many overlooking potential technical limitations for such price points.

For instance, Jake Claver, Director of Digital Ascension Group, has predicted XRP could surge as high as $2,000 within seven months. He maintains this outlook despite the fact that XRP would need to grow over 65,000% from its current level, resulting in a market cap of $118 trillion.

In July 2023, Shannon Thorp predicted that XRP’s price would soar to $100 to $500 within seven months. However, the timeline elapsed, and XRP’s price even dipped below the level it was before the ambitious forecast. Meanwhile, Thorp later owned up to her mistake after the forecasts failed.