Here is How High XRP Can Rise if XRPL Captures 10% of the Derivatives Market at $100T

Assessments suggest the price of XRP could reach a four-digit figure if XRP can capture 10% of the global derivatives market, but there’s a catch.

XRP has been the focal point of multiple bullish predictions in recent times. One of the primary factors contributing to this trend is the untapped potential of the altcoin and its associated blockchain, the XRP Ledger (XRPL).

XRP Undervalued

Notably, XRP started off well years back, with its price rallying by over 60,000% from 2017 to January 2018 to hit the $3.31 all-time high. Within this period, XRP dominated over 30% of the entire crypto market, as its growing utility in cross-border payments became clearer. 

However, XRP has since lost its market dominance, with this utility largely undermined. The SEC’s lawsuit, which ran from December 2020 to this August, contributed to XRP’s setbacks. Now, with XRP trading over 80% below its six-year-old ATH, most analysts believe it is one of the most oversold crypto tokens.

A few commentaries suggest its fair market value could range from $4,813 to $13,386. Others believe XRP’s price could hit greater levels if the financial scene fully recognized its potential and completely adopted it for its attractive utility in payments.

XRP Price with 10% of Global Derivatives Market 

One area some analysts suggest XRP could dominate is the derivatives market. For the uninitiated, the derivatives market is a financial market where contracts (derivatives) derive their value from underlying assets like stocks, bonds, commodities, currencies, or even cryptocurrencies.

Several estimations have put the global derivatives market at a national value of $1 quadrillion, making it by far one of the largest financial markets in existence. If the XRP Ledger hosted about 10% of this value, this would put it at a figure of $100 trillion, far greater than the entire crypto market.

Notably, supposing this $100 trillion market is captured by XRP, being the native token of the XRPL, its price could skyrocket to $1,000, considering its total supply of 100 billion tokens. 

However, while this estimation sees an ambitious XRP price, most of its assumptions are questionable. Notably, some financial commentators have dismissed the $1 quadrillion notional value of the derivatives market, suggesting it is grossly overstated. 

In addition, the estimation suggests that XRP would capture the entire value of the XRPL, which is highly improbable. The XRPL also hosts multiple other assets despite having XRP as its gas token. As a result, whatever notional value the network has would be shared among these tokens, inasmuch as XRP could capture a large chunk of it.