After reports of Ripple joining the International Swaps and Derivatives Association (ISDA) emerged, the XRP community has been basking in euphoria as the new development marked XRP’s entrance into the derivatives market, which could mean a lot for XRP, especially in its quest to ascend in price.
Amidst the teeming excitement in the XRP community, Dig Perspectives, a renowned influencer in the XRP community, took to Twitter to point out the implications of Ripple’s involvement in ISDA on XRP’s price.
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“XRP Could Spike To A Remarkable $1,896.23” – Dig Perspectives.
Per one of his most recent tweets, Dig quoted a tweet from a Twitter user with the pseudonym “Mr. Man,” projecting XRP’s price to a potential $1,896.23 price level.
Now that #Ripple has joined #ISDA take a look at the possibilities for #XRP Price and adoption. $1,896.23 per #XRP👁️
— Digital PerspectivesPermaBull🪝 (@DigPerspectives) August 7, 2023
It`s always been about how much adoption,what Percentage will #Ripple and #XRP get of the remittance/clearing/settling derivatives market? https://t.co/RrbvzBceKU
Meanwhile, the quoted tweet by Mr. Man, under Dig’s post, contained calculations that would eventually sum up Dig’s price projection, emphasizing why Dig’s price prediction should be a half-hearted forecast.
Mr. Man remarked, “Now that Ripple has entered the derivatives space, here is a potential outlook. What would the value of XRP be if it captured 10% of the derivatives market? Take this with a grain of salt.”
Per the calculations in Mr. Man’s sentiment, based on XRP’s present market cap, coupled with the presumption that the digital token could capture 10% of the derivatives market valued at $1 quadrillion.
The calculations implied that 10% of the $1 quadrillion would be worth $100 trillion. XRP’s market cap as of the time of computing the analysis was $34.90 billion. The digital asset market cap must spike about 2,865 times to attain the $100 trillion level.
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Finally, multiplying this 2,865 with XRP’s price during the calculations would give the $1,896.23 predicted price.
We are on twitter, follow us to connect with us :- @TimesTabloid1
— TimesTabloid (@TimesTabloid1) July 15, 2023
XRP Community Reacts, Points Out Inconsistencies In Calculations
As expected, XRP community members reacted to the price projection, which most members tagged as unrealistic. Notably, The XRP Myth Busters NFT Twitter handle appeared particularly concerned about the preconceived assumption that all the derivatives trades would get completed simultaneously with XRP’s entire circulating supply.
“That calculation is very flawed. It supposes that all the derivatives trades would be made at the same time with the entire circulating supply of XRP. Nonsense,” the XRP Myth Busters NFT Twitter account noted.
That calculation is very flawed. It supposes that all the derivatives trades would be made at the same time with the entire circulating supply of XRP. Nonsense.
— XRP Myth Buster NFTs (@XRPMythBuster) August 7, 2023
In reality you can't even remotely estimate the price of XRP based on any industry that would use it. Too many…
On the other hand, some community members seemed optimistic about the price projection. Others appeared skeptical about such, considering different significant variables like regulatory adjustments, volatility, and competition from other crypto projects.
Finally, while the price projections described in this article seemed attractive, XRP stands a meager chance of attaining such heights. Therefore, investors should do their research before joining the project.
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