Finance Expert Believes XRP Can Hit $100 If XRPL Attains This Notable Feat

XRP, the native token of the XRP Ledger (XRPL), has many supporters in the crypto community because of its immense growth potential. Despite its prolonged underperformance, many in the community believe a surge is imminent. Many analysts also share this view, as there are multiple bullish predictions with targets as high as $200.

One key factor that could help XRP reach higher prices is XRPL’s ability to capture a portion of the global derivatives market, a sector estimated to be worth over $1 quadrillion.

Read Also: $10,000 Price Hope Reignited? XRP Is Poised to Facilitate Over $1.2 Quadrillion

ISDA Membership Fuels Speculation

In August 2023, Ripple, the company behind XRP, joined the International Swaps and Derivatives Association (ISDA). This move sparked speculation about Ripple’s ambitions to enter the derivatives market, potentially leveraging the XRPL for trade settlement. Increased transaction volume on the XRPL could significantly benefit XRP, as network activity directly correlates with token demand.

Quincy Jones, an industry expert and prominent XDC developer, emphasizes the role of liquidity in determining XRP’s price.  Instruments issued on the XRPL, such as tokenized bonds or debt securities, would require XRP for transactions. This increased demand, driven by network usage, could propel XRP to higher price points.

A $100 Target

Vandell Aljarrah, a co-founder of Black Swan Capitalist, recently presented a thought-provoking scenario in a post on X. He proposed that if the XRPL captures just 1% of the derivatives market’s volume, translating to roughly $10 trillion, and this entire volume was processed using XRP, the price of each token could reach $100.

Aljarrah wrote, “A simple calculation. If 1% of 1 quadrillion dollars ($10 trillion) flowed through the XRP ledger with 100 billion XRP, each XRP token would be priced at $100.”

Aljarrah’s calculation sheds light on the immense potential for XRP price growth if the XRPL becomes a significant player in the derivatives market. However, it is crucial to acknowledge that this scenario assumes a situation where the entire $10 trillion volume is processed simultaneously.

Read Also: Don’t Sell XRP at Prices Below $10,000 says Ripple Co-Founder 

The Road Ahead

While the $100 target is an ambitious prospect, it is a valuable indicator of XRP’s potential. The success of Ripple’s venture into the derivatives market, coupled with the continued development of the XRPL ecosystem, will be critical factors influencing the future price trajectory of XRP.

Multiple analysts have set ambitious targets for XRP, with predictions exceeding $1,000. Ripple’s venture into the derivatives market could pave the way for the digital asset to reach these ambitious targets.

---

Follow us on Twitter, Facebook, Telegram, and Google News