XRP Price if it Hits a $1 Trillion Valuation

The XRP price has performed well since 2024, and analysts predict further growth in the coming years. The bullish case rests on key catalysts such as a potential Ripple ETF approval, its growth in the money transfer industry, and its role in the stablecoin market. This article explores XRP's potential price if its market cap hits $1 trillion.

The price of XRP has been on a tear since the start of 2024, and analysts are predicting that the crypto could see even further gains in the coming years.

Those in the bullish camp highlight several key catalysts that could propel XRP to new highs. These include the potential approval of a Ripple ETF by the Securities and Exchange Commission (SEC), Ripple's growing role in the money transfer industry as it takes on SWIFT, and its involvement in the rapidly expanding stablecoin market.

But just how high could XRP go if it were to reach a $1 trillion valuation?

If XRP Reaches A $1 Trillion Market Cap, Here’s What HappensTo reach a $1 trillion valuation, XRP would need to rise by 625% from its current price. This is a significant sum, but it’s not entirely implausible, considering that XRP surged by nearly 500% between its lowest and highest levels in November last year.

To put this in perspective, XRP’s price has risen from $0.005 in August 2013 to $2.37, indicating a staggering 47,100% increase.

If we were to see a price surge of 625%, taking its starting price of $3.74 on 12 April to $17.20, its new market cap would be $1 trillion.

If XRP is able to reach a $1 trillion valuation, it would make it the fourth-largest cryptocurrency in the world, after Bitcoin, Ethereum and Tether. For some context, it is currently the fifth-largest crypto.

It is also worth noting that XRP’s circulating supply is currently about 58.55 billion. However, this increases by about 1 billion every month as the remaining tokens from the 50 billion initial token offering return from escrow.

If XRP were to surge to $17, its fully diluted valuation would amount to $1.7 trillion.

In terms of the BTC/XRP market ratio, it currently stands at 0.0721, which means that Bitcoin would have a market cap of $13.53 trillion.

With Bitcoin’s current circulating supply of 19.5 million, this would place the price of BTC at $683,333—slightly lower than BlackRock’s primary target for the flagship crypto.

What’s Next For The XRP Price

The price of XRP has been on a strong uptrend since the start of 2024, and it is now trading at its highest level in over nine months.

The crypto is up over 450% year-to-date, and it has outperformed the majority of other major cryptocurrencies.

This bullish run can be attributed to several key catalysts. Firstly, there is the potential for the SEC to approve the first Bitcoin ETFs later this year, with analysts expecting the agency to greenlight these funds. Polymarket’s odds for the approval of iShares BTC Trust (IVVB) indicate a 77% probability.

Moreover, Brad Garlinghouse is aiming to disrupt Swift’s current $150 trillion a year business by enrolling more banks in the RippleNet platform to facilitate faster transactions.

At present, about 400 financial institutions are members of RippleNet, and they process a daily transaction volume of $1.8 billion. But to siphon off a significant portion of Swift’s transactions, which move around $150 trillion annually, the number of banks using RippleNet would need to increase substantially.

Another factor that could contribute to further gains in the price of XRP is Ripple’s involvement in the stablecoin market. This market is rapidly expanding, with estimates from Blockchained placing the total value of stablecoins in circulation at over $158 billion.

According to Statista, the global stablecoin market is projected to reach a staggering $1.6 trillion by 2030.

Ripple currently has its own stablecoin known as Ripple USD (RLUSD), and earlier this year, there were rumors of Circle, the owner of USD Coin (USDC), being in talks for a potential acquisition.

Earlier this week, Ripple Labs announced the acquisition of Hidden Road, a move that is expected to have a positive impact on the volume handled by the XRP Ledger. This, in turn, will lead to a higher XRP burn rate, as a portion of transactions on the XRP Ledger are used to pay a small gas fee, which is then burned. A higher volume will result in more gas fees being paid, leading to a greater quantity of XRP being burnt.