An interesting viral video was released by Crypto Sensei yesterday about XRP’s real value and potential multiplier. Let’s dig right away into what they found out.
The main argument made in the video is that most people, including many in the crypto space, fundamentally misunderstand how ETF inflows affect an asset’s price – especially for XRP. When Bitcoin’s Spot ETF was approved in January 2024, every dollar invested didn’t just add a dollar in market cap. Instead, it added as much as $25 due to something called the capital multiplier effect. That same logic, the video argues, applies to XRP – but on an even more exaggerated scale.
Unlike Bitcoin, XRP has much lower liquidity, meaning fewer sellers and tighter supply. That makes it far more sensitive to big chunks of money entering the market. As shown in real-world examples, there have been instances where just $12 million in inflow caused XRP’s market cap to jump by more than $7 billion. That’s a 601x multiplier, not just theory – actual historical behavior. These numbers aren’t random guesses either. They’re based on actual market data from moments when XRP experienced sudden bursts of demand.
The video also dives into the idea of a future XRP Spot ETF being filed in the U.S. Nate Geraci, a well-known ETF expert and president of the ETF Store, hinted that BlackRock and other big players could be eyeing XRP – once legal clarity is reached following the SEC vs Ripple case. Even though BlackRock hasn’t filed anything yet, insiders believe it’s just a matter of time. The infrastructure is almost ready. The demand is growing. All that’s left is for regulatory roadblocks to clear.
So why is this “multiplier” so important? Because it completely changes how we think about potential gains. Most people assume that $1 billion flowing into XRP equals a $1 billion increase in market cap. But if the true multiplier is 100x or even 200x, that same billion dollars could push the market cap by $100 to $200 billion. That’s the kind of shift that turns skepticism into full-blown FOMO – especially if institutions start jumping in quickly once ETFs are approved.
Hypothetical Scenarios for XRP
Inflow 100x Multiplier 200x Multiplier $5B $500B Market Cap $1T Market Cap $10B $1T $2T $25B $2.5T $5T $100B $10T $20T
The crazy part? We haven’t even factored in large-scale adoption by banks, credit unions, and central banks, which the video hints will be another wave entirely. If that happens, the kind of numbers being thrown around – like a $10 trillion XRP market cap – might not be fantasy at all.
In the end, Crypto Sensei makes a strong case that we’re not only underestimating XRP’s potential – we might be seeing the calm before a generational financial storm. Whether or not all of this unfolds exactly as predicted, one thing is clear: XRP’s story is far from over, and the multiplier might just be its biggest secret weapon.
Read also: Here’s the XRP If It Becomes the Bridge Currency for Global CBDCs
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The post Why Everyone’s Wrong about the XRP Multiplier Effect appeared first on CaptainAltcoin.
