XRP may never hit $100, maybe after the next decade. This may sound very disappointing to XRP investors, but they should not be afraid, I have a puzzle for them.
XRP hit its all-time high of above $3 in the famous Bull Run staged in late 2017 to early January 2019. Since then, XRP has struggled to get but to a dollar though there is a massive improvement in its market cap.
I’m not saying XRP may not perform as expected, What I mean is that though the digital asset may perform positively, its available supply is too huge for the performance to easily reflect in its price.
Let’s Get Started
In case you do not know, the price of a digital currency is determined by dividing its Market Cap by the Available supply. In this context, the market cap has to equal the available supply for a coin to trade at a dollar. In the same manner, the market cap has to double and triple the available supply for the coin to trade at $2 and $3 respectively.
This means the smaller the available supply, the easier it is for the price of a coin to rise faster. I believe you are following my point. The available supply of Bitcoin is about 17 million. The market cap reached $17 million for the price to trade at a dollar.
Bitcoin price = Market cap÷ available supply
Bitcoin Price = $137,498,292,822 ÷ 17,749,900 BTC.
Price = $7746.42
Meaning had the available supply of Bitcoin been 42 billion which is the current circulating supply of XRP, Bitcoin would be trading at $3.
$137,498,292,822 ÷ 42,238,947,941 {supply of XRP) = $3.
This means, when the market cap of XRP reaches the market cap of the most successful coin, Bitcoin, XRP would be trading at just $3, and this is a level Bitcoin used to trade at $7964.
Let Me Save You From Complex Calculations
XRP can reach $10, but that is not an easy task. The market Cap of XRP will have to reach $421,819,951,120 to trade at $10. This figure is almost 4 times the current market cap of Bitcoin. Dash would be trading at about $52,000 with this market cap XRP needs to trade at $10. Why? Because Dash has an available supply of just $8 million.
XRP is doing well, but its huge available supply will make it difficult to trade at those high prices investors are speculating. It is possible for XRP to trade at $10, but almost impossible for XRP to trade at $100. To reach $100, it would have to reach an impossible market cap of $4,218,199,511,200.
