Expert Explains Why $30 XRP Price May Be Closer Than Market Cap Critics Think

XRP recently reached a new all-time high of $3.65, exciting the XRP army as they anticipate further growth. With XRP set to test new heights, experts are shifting their focus to how the asset can reach the high targets the community expects.

Among them is Zach Rector, a crypto entrepreneur and commentator, who recently outlined a bold framework for projecting XRP’s price trajectory during an interview shared by Jake Claver.

The Market Cap Multiplier Concept

Rector’s perspective hinges on what he calls the market cap multiplier, a dynamic he claims is often overlooked when evaluating crypto assets.

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According to Rector, this multiplier reflects the impact of capital inflows on XRP’s market capitalization, which he describes as far more dramatic than in traditional markets due to crypto’s relative illiquidity.

“What we’ve observed is the market cap multiplier on XRP is anywhere from 50x to 200x on the way up,” Rector stated. He explained that the multiplier has been more intense on the way down, reaching between 500x and 900x. In practical terms, this means a $1 billion inflow could result in a $50 billion increase in market capitalization, not a one-to-one ratio as often assumed.

ETF Inflows Could Accelerate Growth

Other experts have previously explained that market cap limitations cannot hold down XRP, and Rector’s model challenges this common critique. Skeptics frequently dismiss talk of $30 or $100 prices by applying traditional stock market logic to crypto markets.

Rector counters that comparison as fundamentally flawed, noting that these assets are much more illiquid than the stock market, leading to amplified price movements relative to inflows.

To illustrate the point, Rector cited JP Morgan’s projection of $4 billion to $8 billion in first-year inflows into XRP ETFs, should they materialize. Using his upper-end multiplier estimate of 200x, Rector calculated that this could drive a $1.7 trillion increase in the asset’s market cap. With the token’s circulating supply now at 58 billion, he argued this scenario could support a price around $30.

XRP Can Reach These High Prices

“So it’s going to take way less inflows to get us to these astronomical far-off market caps than what people have traditionally been thinking,” Rector said. This recalculation has made ambitious XRP price targets more plausible than previously assumed.

Critics often raise concerns about a multi-trillion-dollar XRP market cap, suggesting such figures surpass the combined value of all publicly traded stocks. Rector noted that XRP is solving a problem bigger than all the stocks, capturing just a fraction of the market. The asset aims to dominate, which justifies these lofty predictions.

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