xAI’s Grok Shows How XRP Could Hit $30,000 if Ripple Handles $30T in Daily Transactions: Is This Realistic?
The latest beta version of Grok, xAI’s advanced AI model, recently analyzed XRP price potentials if Ripple handles up to $30 trillion in daily transactions. The analysis was prompted by a question from Majeed, a prominent figure in the Saudi Arabian XRP community, regarding the price of XRP if Ripple released 1 billion tokens per month from escrow while managing $30 trillion in daily transactions.
For context, Ripple currently releases 1 billion XRP each month but retains only 200 million tokens after re-locking 800 million. Speculations about XRP’s potential price explosion in the event of Ripple’s payment service expansion have been circulating, leading to Majeed’s query.
To determine the extent of this potential price increase, Grok used economic principles to calculate the price, resulting in a value of $30,000 per XRP under certain conditions.
Grok’s analysis began by confirming that Ripple would need to process $30 trillion in daily transactions. Additionally, it considered the monthly release of 1 billion XRP from escrow. To maintain consistency, the analysis expanded the transaction volume to a monthly basis, totaling $900 trillion with 30 days in a month.
Using the Quantity Theory of Money, which states that transaction volume equals the total money supply multiplied by the number of times each unit of money is used, Grok calculated the necessary price per XRP. The analysis set the price as the transaction volume divided by the product of the money supply and velocity.
Assuming the one billion XRP released each month facilitated transactions, Grok estimated the velocity based on how often each token is used. If each XRP was used once per day, the calculated monthly velocity would be 30, resulting in a price of $30,000 per XRP.
However, considering XRP’s fast settlement capabilities, Grok explored scenarios where each token was used multiple times daily. If each XRP circulated 10 times per day, the velocity would increase to 300 per month, reducing the calculated price to $3,000.
Another approach considered the total circulating supply of XRP, estimated at 50 billion tokens. Under this assumption, XRP would need to be valued at $600 per token to handle the transaction volume.
Alternatively, Grok recalculated based on daily figures, assuming one billion XRP available for daily transactions and a velocity of 10 uses per day. In this scenario, the price would still need to be $3,000 per XRP to meet the daily $30 trillion demand.
However, many XRP community members view the $30,000 price as unrealistic, suggesting a more realistic price range of $100 to $1,000. Furthermore, the likelihood of $30 trillion in daily transactions is highly improbable. Currently, XRP is trading at $2.56.
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