XRP Could Support Multi-Trillion-Dollar Value with $10 Trillion on Ledger
A new theory suggests that the XRP Ledger could support a multi-trillion-dollar value for XRP, if massive amounts of capital move onto the ledger. Crypto commentator Rob Cunningham argues that this is possible if $10 trillion in capital flows into the XRP Ledger, and a significant portion of it needs to be converted into XRP and held there.
Cunningham points out that just because capital is moving around on a blockchain doesn't mean all of it has to flow into the native token. He notes that only a small percentage of this capital may actually need XRP for liquidity, bridging, collateral, or investment.
To put this theory into perspective, Cunningham cites an example where $66 million in net inflows into XRP resulted in a roughly $45 billion jump in its total market cap. This works out to a ratio of more than 600:1 between the money flowing into XRP and the resulting change in its market value.
While this theory is intriguing, it's essential to note that market cap is not an automatic reflection of price. Even small changes in marginal buying or selling can move the entire supply of a token.