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Kriptoteka > Market > Institutions > Could XRP Hit $400 If Ripple Secures 20% of Stock Market?
Institutions

Could XRP Hit $400 If Ripple Secures 20% of Stock Market?

marcel.mihalic@gmail.com
Last updated: September 18, 2024 5:50 am
By marcel.mihalic@gmail.com 6 Min Read
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Ripple (XRP) plays a significant role in the cryptocurrency landscape. But what would occur if it were to capture a substantial share of the global stock market? The figures are striking. Should Ripple secure 20% of the currently massive $118 trillion global stock market, XRP’s value could soar to a range between $223.70 and $439.51. Although the probability of this scenario appears low, it’s worthwhile to consider the circumstances that could make it possible.

XRP Price Forecast: Ripple’s Capability to Seize 20% of the Market

For Ripple to attain 20% of the $118 trillion global stock market, several essential advancements are necessary. These include regulatory clarity, robust partnerships, technological progress, and heightened adoption by financial institutions and central banks.

At present, Ripple is making significant progress with its technology and partnerships. Solutions like x Current, x Rapid, and xVia are already bringing on major clients across the globe, particularly in areas like Southeast Asia and the Middle East. However, to gain such a prominent position, Ripple will need to enhance its initiatives and achieve widespread recognition and usage within the conventional financial landscape.

Aiming for a $22 Trillion Market Cap for Ripple

If Ripple were to command 20% of the global stock market, it would quickly become one of the largest financial entities globally. At this level, Ripple’s market cap would skyrocket to an impressive $22.37 trillion. For perspective, this valuation would greatly surpass the market capitalizations of leading financial institutions today, including:

  • JPMorgan Chase: ~$590 billion
  • Visa: ~$573 billion
  • Mastercard: ~$459 billion
  • Goldman Sachs: ~$153 billion

This remarkable valuation would place Ripple in the same discussions as global titans, solidifying its role as a fundamental part of the financial system.

XRP Price Assessments Across Various Scenarios

To predict XRP’s potential price in these situations, let’s evaluate three distinct supply scenarios:

  1. Scenario 1: With the current circulating supply of 56.4 billion XRP, a market cap of $22.37 trillion would lift XRP’s price to $396.88.
  2. Scenario 2: Assuming a fully diluted circulating supply of 100 billion XRP, the price could be $223.70.
  3. Scenario 3: A midpoint scenario with a circulating supply of 75 billion XRP would produce a price of $297.29.

These scenarios suggest a range of potential XRP prices between $223.70 and $396.88.

What are the Chances of Ripple Capturing a Share of the Global Stock Market?

While the idea of controlling 20% of the global stock market may seem unrealistic, Ripple has made substantial strides already. A significant factor is the regulatory clarity that Ripple gained from its legal victory over the SEC. This success has removed a critical barrier that hindered the token’s adoption and market growth.

Additionally, Ripple has formed partnerships with banks and financial institutions in pivotal regions such as Southeast Asia and the Middle East. These collaborations, along with the uptake of its products like x Current and x Rapid, position Ripple favorably to extend its reach within traditional finance.

The Influence of Central Bank Digital Currencies (CBDCs)

Another vital element in Ripple’s potential market leeway is the emergence of Central Bank Digital Currencies (CBDCs). If XRP is selected for use in CBDC frameworks, it would greatly bolster the token’s utility and might drive even broader adoption throughout the global financial ecosystem. As central banks investigate digital currencies to modernize their financial frameworks, Ripple could stand to gain if it establishes itself as the preferred solution.

How Regulatory Clarity and Product Development Open Doors

Ripple’s recent legal triumph against the SEC has provided the much-needed regulatory clarity, lifting a significant obstacle that could have stymied its growth. This development enhances Ripple’s prospects of seizing a share of the global financial market. The technology lineup—comprising x Current, x Rapid, and x Via—has already attracted significant clients worldwide.

Moreover, Ripple’s collaborations with a variety of banks, especially in the MENA (Middle East and North Africa) region, lend credibility to its endeavors. These partnerships are a crucial milestone towards Ripple’s assimilation into traditional finance and lay the groundwork for the firm to rival other financial powerhouses.

Is Ripple Capable of Realizing Its Aspirations?

Despite the encouraging developments, capturing 20% of the global stock market remains an ambitious target. Ripple must continue to forge partnerships, diversify its applications, and exhibit the effectiveness of its technology on a global stage. Furthermore, XRP’s price needs to mirror its growing utility—particularly if the token becomes essential for the functioning of CBDCs and other financial innovations.

While it may seem optimistic to anticipate Ripple monopolizing such a substantial sector of the global stock market, the company’s achievements thus far indicate that it has the potential to redefine the limits of what’s conceivable in the financial sphere.

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