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Despite its current market struggle, some still believe XRP has the potential to reach a three-digit figure. However, how feasible is this projection?
Audacious price goals like $50 and $100 have featured prominently among XRP price targets. For instance, in April, market analyst Cryptominder predicted that XRP could potentially reach $50 over the next five years.
In addition, market commentator BarriC has persistently insisted that XRP could claim a $100 price soon. Moreover, Alpha Lions Academy founder suggested last month that once XRP reaches the $50 price, investors will start clamoring for $100.
XRP to $50 and $100 Unfeasible Under Current Market Conditions
Despite these bullish projections, some industry experts still believe the $50 to $100 price target is rather too ambitious for XRP, given current market conditions. Specifically, they point to the market cap implications of such a price level, considering XRP’s extensive circulating supply of nearly 59 billion tokens.
To put things into perspective, a $50 price for XRP would push its market cap to $2.95 trillion. Such a valuation would make XRP the largest crypto asset in the market, dethroning Bitcoin (BTC), which currently boasts a market cap of $2.06 trillion. It would also make XRP larger than Silver, Alphabet (Google), and Amazon.
Moreover, should XRP claim the more substantial $100 price goal, its market cap would double from the $2.95 trillion mark, reaching $5.9 trillion. Interestingly, this valuation is not just greater than Bitcoin’s market cap, but much larger than the current total crypto market cap at $3.24 trillion.
Consequently, the market cap implications of the $50 and $100 price targets indicate how unfeasible these targets are, especially given the current condition of the market. From the current price of $2.13, XRP would require a massive 2,247% rise to hit $50 and a 4,594% increase to claim $100.
Conditions Under Which an XRP Rally to $50 and $100 is Feasible
However, while these targets appear unfeasible in the prevalent market conditions, they are not particularly impossible. Specifically, XRP has a chance of reaching $50 or even $100 if the broader crypto market expands considerably.
For instance, Dan Gambardello, a Cardano permabull, predicted that the broader crypto market cap could reach $40 trillion someday. At this position, if Bitcoin maintains its current dominance of 63.5%, the asset’s market cap would soar to $25.4 trillion. Many experts believe this is feasible.
Meanwhile, with these market conditions, an XRP rally to $50 could be possible. To put things into perspective, if XRP reaches $50 with a market cap of $2.06 trillion, it would only have a market dominance of 5.15% in a $40 trillion crypto market. This is highly feasible, as XRP’s peak market dominance this year was 5.56% in February.
Also, if XRP claims a $100 price with a $5.9 trillion valuation, its market dominance would rise to 14.75%. This is a more difficult feat but within the realm of possibility. Notably, XRP’s all-time high dominance was 31.33% in mid-2017.