Analysis

Does XRP has Enough Potential to Reach $10 Anytime Soon?

XRP has been tipped for greatness by many cryptocurrency experts. Despite the uniqueness of this digital currency, critics believe XRP was not designed for investment, and the team have no intention of seeing the price skyrocket like Bitcoin considering the fact that it was primarily designed for the banks. The possibility of XRP to reach $10 has been quite debatable, though not as debatable as XRP reaching $100.

In this article, I will attempt to point out why people think XRP can never reach $100, why it is argued that XRP may or may not reach $10 compared to the other cryptocurrencies, and what it may take to reach $10 and the possibilities.

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Ripple and XRP

It is worth noting that XRP and Ripple are not the same as people interchange them. Ripple is a start up company based in San Francisco known to be the majority shareholder of the XRP cryptocurrency. In addition, Ripple is specialized in developing software used by banks to facilitate global financial transactions using XRP as the native cryptocurrency. Ripple has over the years been patronized by the various banks for cross border payments with a very fast transaction at a cheaper cost.

XRP on the other hand is the cryptocurrency used to power transaction on the Ripple network. It is powered by the XRP ledger which has been acting as the Blockchain that hosts XRP.

According to research, XRP was developed as a better version of Bitcoin in a bid to reduce the high transaction cost associated with the leading cryptocurrency and also provide a solution to the slow transaction speed of Bitcoin. XRP is used as a medium to facilitate cross border transactions on the Ripple network.

Ripple Lab was the main developer of XRP, having created 100 billion XRPs into existence. Its interesting to note that though the team behind the Ripple company and the XRP cryptocurrency are the same, the two inventions are independent.

From research, the Ripple company owns about 60 billion XRPs out of the 100 Billion XRPs produced. 55 billion XRPs have then been stored in a secured escrow and 1 billion XRPs are released into the market every month. This has made the XRP status as cryptocurrency come under severe criticism as it is argued that XRP is controlled by the team, and does not qualify to be called a cryptocurrency as it is not decentralized.

What it May Take for XRP to Reach $10

Currently, XRP has a market cap of 12 billion and an available supply of 43 billion. It has been explained that the price of cryptocurrency is calculated using the method: Price = Market Cap ÷ Available Supply.

The market cap of XRP needs to be around 430 billion for XRP to trade at $10. When people look at the current market Cap, and picture a market cap of 430 billion, it becomes a long journey, making them doubt the possibility of XRP reaching $10 and even getting to $100.

Is It Possible for XRP to Reach $10?

Yes, it is possible! People argue that the cryptocurrency market needs to record closed or about trillion market cap for XRP to reach $10. The truth is that the Total market cap of cryptocurrency going beyond trillion is very possible. Why? Because of the historical chart of the market cap.

XRP to reach $10

In April 2013, the total market cap of the cryptocurrency market was $1.58 billion. Bitcoin alone had a market cap of $1.49 billion, meaning it was carrying the entire market cap on its shoulder. Even now, Bitcoin has the lion share of the total market cap. The market cap does not need to increase for the price of a cryptocurrency to rise. Instead, the performance of the cryptocurrency causes the market cap to change in value.

XRP to reach $10

In 2015, the total cryptocurrency market cap had increased to $4.2 billion with Bitcoin boasting of $3.5 billion and XRP having $365 million. For anyone to think that XRP will never reach $10 must understand its history and where it came from.

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The cryptocurrency market has accelerated in market cap from $1 billion In 2013 to over $240 billion in 2019, sending XRP from $365 million in 2015 to $12 billion in 2019. Interestingly, XRP even had a market cap of over $120 billion in January 2018 when it reached its all time high. XRP has a lot of possibility to reach $10, and may happen sooner or later.

Why XRP May Reach $10 Sooner or Later

Recently, Brad Garlinghouse, CEO of Ripple had an interview with reporters and revealed that the cryptocurrency industry is saturated with worthless projects. There are thousands of cryptocurrency projects on the internet, and according to him, majority of them will fail and go back to zero except the ones that solve a real world problem.

He stated that Swift transactions can take days to be successful, and this is the problem XRP seek to solve. Everyone makes rational decision and seek to facilitate transaction at a faster speed and a cheaper cost. When the XRP project is widely understood, and the adoption rate reaches a different level, the real value of the token would be known as it may take the market by storm.

XRP has previously launched a number of partnership deals with major financial institutions with many other deals in the pipeline. Based on its function and the work put in place by the team, its current price makes it one of the most undervalued coins on the internet. Ripple has currently recorded over 300 banks or financial institutions that use its Blockchain technology.

According to some experts, the price will soon break its all time high record partly due to the Ripple annual conference , Swell, scheduled to take place soon. The hype surrounding the conference alone is enough to cause a price spike, and the same can be said of the Bitcoin halving event which may have a spread over effect on the XRP price. Recently, XRP has also managed to record an insane daily transaction volume.

On 26 October, its daily transaction was more than half of the total cryptocurrency market transaction. If you ask me, XRP is not far from staging a bull run to reach the $10 price mark. Similarly, XRP can also reach $100 but not as easy as it sounds. It may take years.

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Excellentjohn
A cryptocurrency and stock writer, analyst and consultant. Contact me on kojokumijohn@gmail.com

3 Replies to “Does XRP has Enough Potential to Reach $10 Anytime Soon?

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