The XRP community has been abuzz with excitement after reports emerged that Ripple has become a member of the International Swaps and Derivatives Association (ISDA). This development has sparked discussions about Ripple’s potential entry into the derivatives market and how it might impact the price of XRP.
Dig Perspectives, a prominent figure within the XRP community, took to Twitter to share his enthusiasm regarding the opportunities Ripple’s involvement in derivatives could offer for XRP. He highlighted a projection suggesting that XRP’s price could skyrocket to an impressive $1,896.23 per token.
However, it is essential to note that this projection has been met with skepticism and concerns from some members of the community.
A member of the XRP community, known as Mr. Man, shared an ambitious projection for XRP’s price. He cautioned that the estimation should be taken with some skepticism.
Mr. Man based his calculation on the current market cap of XRP and assumed that XRP could capture 10% of the derivatives market, which is estimated to be worth $1 quadrillion.
According to his projection, if XRP processes 10% (or $100 trillion) of the derivatives market with its current market cap, the price of XRP could surge to $1,896.23. The calculation factored in an XRP market cap of $34.9 billion, which has now decreased to $32.6 billion as of the present time.
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XRP Community Divided Over Price Projection
Critics within the XRP community swiftly highlighted potential issues with the projection. The Twitter account XRP Myth Busters NFT expressed reservations about the assumption that all derivatives trades would occur concurrently using the entire available supply of XRP. The improbability of this scenario led to skepticism regarding the reliability of the prediction.
The response from the XRP community has been diverse, with some members cautiously optimistic about the potential for a price surge, while others emphasize the need to consider multiple influencing factors.
Market volatility, regulatory changes, competition from other cryptocurrencies, and the complexities of the derivatives market are crucial elements shaping XRP’s future price trajectory.
Despite the excitement, investors should approach such projections with skepticism. While the idea of XRP reaching $1,896.23 is enticing, the reality is far more complex.
Ripple’s involvement in the derivatives market will undoubtedly impact XRP’s value, but accurate predictions in the volatile crypto market remain challenging, even for the most passionate analysts.
Currently trading at $0.6192, for XRP to reach $1,896.23, it would require a remarkable 306,101% rally, highlighting the overly ambitious nature of the projection. Additionally, achieving such a price level would result in XRP’s market cap exceeding $100 trillion, based on a circulating supply of 52.7 billion tokens.
