Here’s the XRP Price if Ripple’s Market Cap Reaches 8% of the US M2 Money Supply

Ripple is a growing community and no doubt the progress of the ecosystem will also affect XRP price. Recently, the Crypto Basic page on X posted an analysis showing how XRP could hit a massive price milestone

Here's the XRP price if Ripple's market cap reaches 8% of the US M2 money supply.

The U.S. M2 money supply, which includes cash, checking and savings deposits, time deposits under $100,000, and retail money market funds, has been showing strength and increasing liquidity in the system. Specifically, current levels are showing a 5.3% increase from December 2023. This is a huge addition of over $1 trillion in just a few months.

When liquidity increases and interest rates remain relatively low, people tend to move their money into riskier assets like cryptocurrencies in hopes of better returns—one reason why tokens like XRP could benefit in such an environment.

If Ripple's market cap were to reach 8% of the total M2 supply, it would be interesting to see what happens to XRP price. Right now, M2 is at around $21.86 trillion.

Eight percent of that would equal roughly $1.75 trillion. If XRP were to hit a market cap of $1.75 trillion, that would translate into an XRP price of around $32, assuming the circulating supply stays at approximately 55 billion tokens.

To put this in perspective, a huge leap from current levels would be needed. Still, it's a reflection of what happens when large amounts of cash start looking for new opportunities. Of course, this is also dependent on investor sentiment toward crypto continuing to improve.

The post Here’s the XRP Price if Ripple’s Market Cap Reaches 8% of the US M2 Money Supply appeared first on Crypto Basic.