XRP’s price has the potential to reach double digits if its market cap reaches the same level as Tesla, the electric vehicle manufacturer. However, XRP has been underperforming in the market recently, failing to surpass its peak of $3.31 from six years ago. While other assets like Bitcoin have reached new all-time highs in the current cycle, XRP has struggled to keep up.
During the 2021 bull run, XRP only reached a high of $1.96 and was unable to capitalize on the broader market rally in Q4 2021. While the rest of the market experienced new all-time highs, XRP lagged behind. This inability to surpass previous highs has kept XRP’s market cap at lower levels.
In the past, XRP battled with Ethereum for the second spot of largest crypto assets. However, Ethereum has now secured that position with a market cap of $300 billion, while XRP’s market cap is only $28.6 billion, making it the seventh-largest cryptocurrency.
Despite these challenges, some experts believe that XRP could make a comeback. They compare its potential resurgence to Tesla’s market growth. For example, market analyst EGRAG suggested that selling XRP at the current price level is like selling Tesla stock when it traded for $2.50.
Interestingly, a comparison from last August showed that despite XRP’s underperformance, it still performed better than Tesla over a 10-year period. A $100 investment in XRP in August 2013 would have yielded $9,222 in August 2023, while Tesla only yielded $2,189 within the same period.
However, Tesla’s overall growth has been extraordinary. The stock currently trades at $200.64 with a market cap of $640.97 billion, significantly higher than XRP’s market cap.
If XRP were to reach Tesla’s market cap of $640.97 billion, its price would soar to $11.44, assuming the current circulating supply remains constant. This would be a 2,145% increase from the current price of $0.5094.
It’s important to note that this article is for informational purposes only and should not be considered financial advice. Readers should conduct their own research before making any investment decisions.