XRP price could surge to incredibly higher levels if the crypto asset’s market cap reaches just 8% of the expanding U.S. M2 money supply.
XRP has recently shown signs of strength, climbing back to $2.24 after briefly dipping to retest the $2 level last week. Although the price bounced, it still hasn’t broken past the $3 mark, a level it has struggled with since February.
Meanwhile, despite five straight months of bearish pressure, XRP has managed to stay above $2, and analysts see this as a sign of resilience. Many believe the $2 zone could serve as a base for a bigger move when market conditions improve.
US M2 Money Supply Grows: How Could This Impact XRP?
This optimism comes as the broader economy sees a growing money supply. The U.S. M2 money supply, which includes cash, checking and savings deposits, time deposits under $100,000, and retail money market funds, has been rising steadily since December 2023.
Specifically, current data indicates that the M2 money supply now sits at $21.86 trillion, up 5.3% from December 2023, an increase of over $1 trillion.
