A discussion was raised about the possibility of $XRP
to high values, like a four-digit price level, at the XRP conference in Las Vegas.
Prominent social media influencer Brie Teresi posed the question to Will Kar, a prominent figure in the XRP community.
Teresi specifically noted that critics often oppose the broad aspirations of XRP enthusiasts who believe the currency could reach $1000. Their argument is based on the market cap of $XRP which is estimated in billions of dollars. Kar asked for his perspective on this debate.
The "irrelevant" market cap of #XRP ; liquidity is important
In response, Kar pointed out that traditional valuation methods used for companies are irrelevant in the blockchain industry. According to him, it's all about liquidity.
Kar confirmed that in a scenario where order flows reach tens or even hundreds of trillions, XRP would need to support a much larger market cap than it currently has. According to him, this is necessary for $XRP to function at full capacity.
Kar indicated that while market capitalization works well for companies as it relies on cash flow and revenue, these same metrics do not apply to a crypto asset like XRP.
He criticized the critics, stating that those who claim XRP cannot reach high valuations due to market cap constraints overlook the bigger picture of blockchain technology and its benefits.
How would #XRPUSDT look at $1000?
Kar's argument adds to a growing group of XRP commentators who dismiss market cap valuation as a valid constraint on ambitious price targets.
In context, at $1000 per XRP with a current circulating supply of 58.75 billion coins, the total valuation of XRP would reach $58.75 trillion. This would surpass the aggregated valuations of gold, Microsoft, Nvidia, Apple, Amazon, and Bitcoin.
For this reason, critics argue that this price point is unrealistic. However, XRP supporters often ignore these concerns, even though they do not typically provide an alternative framework for evaluating XRP's potential cap.
Kar's view that XRP could reach unprecedented price levels due to trillions in daily flows is a speculative assumption that XRP alone will manage this volume. Critics, including figures like Joshua Jake, counter this by highlighting the immense competition in the cryptocurrency space. They argue that XRP's position is not as unique as supporters claim.
The path of XRP to $1000 using real estate analogy
At the same time, in support of XRP reaching $100 and above, Armando Pantoga argued that XRP does not need trillions of dollars in new capital for its price to rise.
He used a real estate analogy to explain how market capitalization and price evaluation often reflect perception rather than actual money movement.
Pantoga specifically explained that if one house in a neighborhood of 100 houses is sold for $1 million, up from an average price of $500,000, the perceived value of all one hundred houses is adjusted to $1 million each.
This doubles the total "market value" of the neighborhood from $50 million to $100 million, even though the deal did not exceed $1 million (which is just above the previous average of $500,000).
Pantoga used this analogy to argue that high prices, like $100 or more, could realize XRP's value. Pantoga pointed out that small buy orders can cause significant price increases in a weak liquidity environment like cryptocurrencies, which boosts market cap without the need for proportional capital inflow.
According to Pantoga, a capital inflow of between $20 and $30 billion could push the price of XRP to $100 under these market conditions. #Ripple #RippleUpdate