The Market Cap Myth: Is XRP Undervalued?
The cryptocurrency landscape is abuzz with discussions surrounding XRP. A recent viral Reddit post titled ‘The Market Cap Myth Around XRP’ has reignited debates about the token’s valuation. The post challenges the notion that XRP’s substantial market cap limits its price growth, proposing instead that liquidity and utility are key drivers.
The Reddit user states unequivocally: “Market cap is just price × circulating supply. It’s a snapshot metric, not a ceiling. Crypto isn’t a stock; it cares about liquidity demand vs. supply.” This perspective has captivated the XRP community, painting a future where higher valuations—like $100 per XRP—are driven by use rather than traditional financial metrics.
Adoption and Real-World Utility Drive Value
What sets XRP apart is its role as a bridge currency in global payments and cross-border transactions. Here’s where the magic happens: XRP’s adoption by banks, financial firms, and even Central Bank Digital Currencies (CBDCs) means it could handle trillions of dollars in annual transaction volume.
For example, if $10 trillion in payments occur each year and XRP is priced at $100, only 100 billion tokens would be required for settlement. Compare this to a $1 price, where an impractical 10 trillion XRP would be needed. In this context, a higher price simply makes XRP settlements more efficient.
Fintech analyst Armando Pantoja adds to this argument, likening skepticism about XRP’s potential to early doubts about tech legends like Microsoft. “It’s the adoption of the technology that matters,” he emphasizes.
What the Experts Say
Institutional support for XRP continues to grow. Analysts like Dom Kwok, a former Goldman Sachs executive, see XRP surging past $10, $100, and beyond long-term as infrastructure scales and adoption deepens.
The August 2025 resolution of the SEC vs. Ripple lawsuit—confirming that XRP is not a security in secondary markets—has only boosted confidence in XRP. Major asset managers have since filed for U.S.-based spot XRP ETFs, signaling institutional interest that could pour billions into the token market.
RippleNet, Ripple’s cross-border settlement solution, operates in over 90 markets with 55 different currencies, enhancing XRP’s attractiveness as a payment solution. Additionally, new AMM (Automated Market Maker) features are further smoothing liquidity—just one more reason behind XRP’s growing utility.
Final Thoughts: A $100 XRP—Dream or Reality?
For avid supporters, $100 per XRP isn’t a pipe dream—it’s a long-term target based on adoption and utility, not hype. Real-world scenarios, infrastructure growth, and institutional backing suggest this could be more than just speculation.
Looking to invest in XRP or level up your crypto trading game? Consider tracking prices and staying updated on current trends. For beginners and seasoned investors alike, platforms like Coinbase and Binance provide accessible tools for buying XRP while monitoring the market.
While the future remains uncertain, one thing is clear: XRP’s long-term value will be defined by its utility, making now an exciting time to be part of the conversation.
