XRP Market Cap Myth Exposed: Expert Analyzes Price Path to $33

Zach Rector, a well-respected crypto expert, has put forward an argument that disrupts conventional thinking about XRP’s valuation, asserting that concerns over market cap limitations are misleading.

According to his analysis, how XRP responds to capital inflows differs significantly from traditional financial assets, making it possible for its value to rise dramatically without requiring massive new investment.

By reviewing market data, Rector identified a pattern in which relatively small amounts of capital entering or leaving the market have an outsized impact on XRP’s total market capitalization. This so-called market cap multiplier effect, he claims, is key to understanding how XRP could reach price targets that many consider unattainable.

The Market Cap Multiplier Effect in Action

Rector’s findings stem from an analysis of past trading activity that demonstrated this multiplier effect in real time. He cited a specific four-hour period where XRP saw $80 million in net inflows. Despite this seemingly modest investment, the asset’s market capitalization surged by $17 billion, implying a 212x rise.

The effect also worked in reverse. When the SEC submitted its last-minute appeal brief in mid-January, 2025, the digital asset’s price dropped from $3.2 to below $3, leading to a $15 billion decline in market capitalization. However, this drop was triggered by just $55 million in capital outflows, producing a 279x multiplier.

Rector pointed out that these drastic shifts in market cap are a recurring trend. He has recently observed cases where the multiplier effect surpassed 589x, with some instances reaching far higher levels. According to him, this confirms that XRP’s valuation is highly responsive to capital movement, challenging the idea that massive investments are required to drive significant price increases.

Can XRP Go to $33?

Rector argues that ETFs could significantly boost XRP’s price by leveraging its market cap multiplier effect. He referenced JP Morgan’s estimate that XRP ETFs could see up to $8 billion in inflows within their first year.

The momentum behind XRP ETFs has grown over the past few weeks. The regulator has acknowledged multiple ETF filings, and while this does not guarantee approval, it shows a more favorable stance toward these investment products.

Based on historical trends, an $8 billion inflow multiplied by XRP’s observed 212x effect could raise its market cap by $1.7 trillion, bringing it to roughly $1.9 trillion. 58 billion XRP in circulation would place its price at $33 per token.

Rector rejects claims that such valuations require massive capital injections, asserting that XRP’s unique market dynamics allow for rapid price increases. Other experts share the belief that the digital asset’s market cap is not a limiting factor for growth.

Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.

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