XRP, the native token of the XRP Ledger (XRPL), has the potential to reach $100 if it can capture just 1% of the global derivatives market, which is valued at $10 trillion. The global derivatives market is estimated to be worth over $1 quadrillion, thanks to the wide range of traded instruments it encompasses. Projections have emerged suggesting that XRPL could capture a portion of this market, particularly after Ripple joined the International Swaps and Derivatives Association (ISDA), an influential trade association. By joining ISDA, Ripple signaled its interest in the derivatives market and its potential to make a significant impact.
Improved liquidity plays a crucial role in XRP’s potential success in the derivatives market. Last August, reports confirmed that Ripple had joined ISDA, with a focus on derivatives. This move placed Ripple alongside major financial institutions such as JPMorgan, Goldman Sachs, Citigroup, and BlackRock. This development sparked speculation that Ripple could make its presence felt in the derivatives market, and the use of XRPL could bring substantial volume to the network. This increased volume on XRPL would benefit XRP, as the native token of the network, by increasing its overall interaction.
Quincy Jones, a notable XDC developer, has asserted that XRP’s price could be influenced by liquidity on the XRPL. He believes that market participants would need to use XRP to move any instruments issued on the network. This could potentially drive XRP’s price higher, possibly reaching $100. However, Jones acknowledges that this outcome is uncertain. He suggests that liquidity on the XRPL could come from the issuance of bonds, debt, and other financial instruments, especially through tokenization. Another avenue for increased liquidity is the derivatives market.
Vandell Aljarrah, co-founder of Black Swan Capitalist, recently assessed the potential price of XRP if XRPL captures a small share of the derivatives market volume, specifically 1%. Based on XRP’s total max supply of 100 billion tokens, Aljarrah calculated that a volume of $10 trillion would lead to a price of $100 per XRP token. It’s important to note that this calculation assumes the $10 trillion volume would be processed at once, which is unlikely.
Currently, XRP is trading at $0.5203, showing a 1.11% increase in the last 24 hours. Achieving a $100 price from this level would require a surge of 19,119%. While this price target may seem audacious, some analysts, like Javon Marks, have set even higher goals at $200. These price levels would mark new all-time highs for XRP and push its market cap to unimaginable heights.
It is important to note that this article is for informational purposes only and should not be considered financial advice. The views expressed in this article are the author’s personal opinions and do not reflect the opinion of The Crypto Basic. Readers are advised to conduct thorough research before making any investment decisions, and The Crypto Basic is not responsible for any financial losses incurred.