XRP Needs Collateral Status for Triple-Digit Price Target

XRP's potential to reach $100 relies on it becoming a widely-used collateral asset locked up by financial institutions, not just capturing payment volume, according to a prominent crypto analyst.

The analyst argues that volume doesn't set the price of XRP, but rather idle inventory does. He notes that XRP transactions settle in three to five seconds, allowing the same tokens to be reused dozens or hundreds of times throughout a day.

This means that processing $5 trillion in volume requires only about $50 billion in float, not a multi-trillion-dollar market cap. The analyst draws a comparison to gold, noting that its value stems from being held in reserves and pledged as collateral, rather than how often it changes hands.

The fully diluted valuation of XRP would be around $10 trillion at a $100 price, with the token's maximum supply standing at 100 billion. A $1,000 price would push that figure to around $100 trillion.