Prominent Entities in the XRP Community Discuss Long-Term Valuation

Discussions on XRP’s long-term valuation have surged, particularly with a proposed price target of $10,000 being deemed possibly conservative.

Key Voices in the Conversation

Leaders like Rowen Exchange and John Squire, a commentator with 510K followers on X, are central to these discussions. They argue the case for XRP based on institutional adoption, supply dynamics, and its potential role in global finance.

How Institutional Adoption Could Drive XRP to $10,000

A primary argument for XRP’s potential growth relates to institutional adoption. Rowen Exchange posits that if banks, payment processors, and governments increasingly utilize XRP for cross-border settlements, demand could skyrocket, resulting in price increases.

Currently, XRP has a total supply of 100 billion tokens, but only about 50 billion are in circulation due to escrow releases and long-term holdings. Should institutions begin to accumulate XRP for liquidity, a supply squeeze may ensue, driving prices significantly higher.

Rowen Exchange contends that institutional use, unlike retail speculation, offers sustained liquidity and volume, steadily pushing prices upward. At present, XRP trades at $2.76, indicating an extraordinary growth rate of 362,218% to reach $10,000, which would lead to a market cap near 1 quadrillion dollars. However, John Squire argues that market cap metrics are irrelevant in XRP’s case.

Market Cap Does Not Matter

To support his belief in XRP reaching $10,000, John painted a hypothetical scenario depicting a tokenized global economy valued at 1 to 2 quadrillion dollars, where XRP transactions constitute only 10% of that. To sustain trillion-dollar daily settlements, he asserts that XRP’s price must exceed $10,000.

He noted that transferring $1 trillion daily does not necessitate $1 trillion in liquidity; merely $20 billion would suffice. This requires 2 million XRP tokens, each at $10,000, to be utilized up to 50 times daily.

Furthermore, John emphasized XRP’s circulating supply of only 57.7 billion tokens, arguing that a higher price is necessary to ensure effective global liquidity.

The Bottom Line

The discussions present a viewpoint that if XRP becomes essential for institutional liquidity and global settlements, reaching $10,000 may be a plausible expectation rather than mere speculation. Nonetheless, naysayers continue to label these notions as unrealistic aspirations.