- An analyst envisions XRP soaring to $1,896 due to its potential in capturing 10% of the $1 quadrillion derivatives market.
- Some community members question the likelihood of this prediction, given the complexities of market dynamics.
Analyst’s Bold Forecast Anchored in Ripple’s New Association
The recent announcement of Ripple’s association with the International Swaps and Derivatives Association (ISDA) has sparked a wave of speculation among crypto experts about the future potential of its native token, $XRP.
Digital Perspectives, a respected crypto commentator on the microblogging platform X (previously Twitter), fueled this speculation with a striking forecast. The prediction suggested that XRP could reach an astounding valuation of $1,896 per token.
Another community enthusiast elaborated on the math behind this bullish projection. By capturing just 10% of the derivatives market, which currently stands at an impressive $1 quadrillion, XRP’s market capitalization would witness a monumental shift. Translating this to real numbers, if XRP processes transactions worth $100 trillion (considering its current market cap is $34.9 billion), its market cap would necessitate a growth by about 2,865 times, hence arriving at the projected $1,896 per token.
However, not everyone in the crypto community shares this enthusiasm. Critics argue the underlying assumption that derivative transactions would use up the entire circulating supply of XRP is far-fetched.
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Interpreting Market Dynamics and Legalities
It’s pivotal to recognize the myriad factors influencing XRP’s pricing. Recent events have cast shadows over XRP’s market stature. Its market cap plunged nearly $10 billion following a ruling by Judge Analisa Torres that the cryptocurrency doesn’t squarely fit into the ‘security’ classification.
Yet, another twist emerged with U.S. District Judge Jed Rakoff’s critique, challenging Judge Torres’ distinction between institutional and retail sales of cryptocurrencies. Rakoff cited discrepancies in the application of the Howey test, a renowned metric used to determine if assets qualify as securities. This discord was magnified when Rakoff’s stance was considered in the backdrop of a parallel legal tussle involving popular crypto exchange Coinbase and the SEC.
Post-Judge Torres’ pronouncement, XRP witnessed reinstatement on leading exchanges such as Kraken, Coinbase, and Gemini, aiding its liquidity boost.
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