Grok, the AI chatbot developed by xAI, has projected a potential five-figure price for XRP if Ripple were to facilitate a staggering $30 trillion in daily transactions. This analysis was sparked by a question from Majeed, a prominent member of the Saudi Arabian XRP community, who inquired about XRP's potential value under such a scenario, factoring in Ripple’s monthly release of 1 billion XRP from escrow.
For context, Ripple currently releases 1 billion XRP from escrow each month but re-locks 800 million tokens, leaving 200 million in circulation. Grok’s assessment suggests that XRP would need to reach $30,000 per coin to support a $30 trillion daily transaction volume.
### **Grok’s Methodology**
To arrive at this conclusion, Grok employed the **quantity theory of money**, which relates transaction volume to money supply and velocity. Here’s how the AI broke it down:
1. **Monthly Transaction Volume**:
- Daily volume: $30 trillion
- Monthly volume: $30 trillion × 30 days = $900 trillion
2. **Money Supply and Velocity**:
- Money supply = Number of XRP in circulation × Price per XRP
- Velocity = Frequency of XRP usage within a given period
Grok assumed a monthly supply of 1 billion XRP (based on Ripple’s escrow release) and a velocity of 30 (each XRP used once daily). Plugging these values into the formula:
**Price per XRP = Transaction Volume ÷ (Supply × Velocity)**
- $900 trillion ÷ (1 billion × 30) = $30,000 per XRP
### **Exploring Alternative Scenarios**
Grok also tested different assumptions to gauge how velocity and supply could impact XRP’s price:
- **Higher Velocity**:
- If each XRP is used twice daily (velocity = 60), the price drops to $15,000.
- At five uses per day (velocity = 150), the price falls further to $6,000.
- **Larger Supply**:
- Using the current circulating supply of 50 billion XRP with a velocity of 30, the price drops to $600.
- Doubling the velocity to 60 reduces the price to $300.
These calculations suggest that XRP’s price could range anywhere from **$300 to $30,000**, depending on velocity and supply dynamics.
### **Key Considerations**
While Grok’s analysis provides an intriguing theoretical framework, it’s important to note that a $30 trillion daily transaction volume is far beyond current market realities. Additionally, the assumptions around velocity and supply are speculative and subject to change based on real-world adoption and usage.
### **Disclaimer**
This content is for informational purposes only and should not be construed as financial advice. The views expressed are speculative and do not reflect the opinions of Binance Square or its affiliates. Always conduct your own research before making any investment decisions.
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