A recent tweet from crypto enthusiast Random Crypto Pal has sparked discussions regarding how market capitalization applies to XRP and whether its price could reach $10,000.
The tweet, accompanied by a video, argues that traditional market cap calculations do not fully capture XRP’s utility, particularly in high-speed global transactions. This perspective challenges conventional financial metrics and suggests that XRP’s price potential is significantly higher than most analysts assume.
This $XRP video explains why MARKET CAP does not apply to $XRP the way most people think it does.
Also explains why and how $XRP will reach $10,000
It’s happening! UTILITY IN ACTION
pic.twitter.com/gRSJxvepZt
— Random Crypto Pal (@RandomCryptoPal) February 18, 2025
Understanding Market Capitalization and XRP’s Unique Utility
Market capitalization is commonly calculated by multiplying the current price of an asset by its circulating supply. In the case of XRP, with a circulating supply of approximately 57 billion tokens, many argue that a $10,000 per XRP would result in an implausibly high market cap.
However, the video presents an alternative perspective, asserting that market cap as traditionally defined does not accurately apply to XRP due to its unique use case in high-speed, on-demand liquidity transactions.
Unlike many cryptocurrencies that primarily function as speculative assets, XRP is designed for real-time settlement and remittance. With transaction speeds between three and five seconds, the same XRP tokens can be reused multiple times per day.
The video suggests that the amount of XRP needed to facilitate a high volume of transactions is significantly lower than the total value being moved. For instance, if a trillion dollars needs to be settled daily, only $20 billion worth of XRP liquidity may be required if each token is utilized multiple times daily.
Tokenized Economy and XRP’s Potential Price
One of the key arguments in the video is that the future of finance is shifting towards tokenization, with global assets potentially being represented on blockchain networks. The narrator posits that a tokenized economy could be valued between one and two quadrillion dollars.
If XRP is responsible for even 10%, it will settle trillions of dollars daily. To facilitate such a scale of value transfer, XRP’s price would need to be significantly higher than its current level.
This argument hinges on the assumption that XRP will play a central role in global financial infrastructure. As financial institutions, central banks, and governments explore digital currencies and blockchain-based solutions, XRP’s ability to bridge currencies and facilitate cross-border settlements efficiently positions it as a potential key player.
Does Market Cap Matter for XRP?
The video also challenges the relevance of market cap in determining XRP’s potential price. Traditional market cap calculations assume that all tokens are static and do not account for velocity—how frequently an asset is transacted within a given time frame. The argument suggests that XRP’s price will be dictated by real-world demand and utility rather than an arbitrary calculation based on circulating supply.
Moreover, if large-scale adoption continues, the need for higher liquidity will naturally drive the price upward. The limited supply of XRP and increasing institutional use could result in substantial appreciation over time.
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.
