Ripple’s Entry into Derivatives Market Sparks Enthusiasm and Skepticism in XRP Community
The XRP community is abuzz with excitement and scepticism following reports of Ripple’s entry into the International Swaps and Derivatives Association (ISDA). This development has triggered discussions about the potential implications of Ripple’s involvement in the derivatives market on the price of its native token, XRP.
Dig Perspectives, a prominent figure within the XRP community, recently took to Twitter to express his enthusiasm about the possible opportunities that Ripple’s entry into the derivatives market could unlock for XRP. In a tweet, he highlighted a projection that suggested XRP’s price could surge to an astounding $1,896.23 per token. However, this ambitious projection comes with its fair share of scepticism and caution.
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Now that #Ripple has joined #ISDA take a look at the possibilities for #XRP Price and adoption. $1,896.23 per #XRP👁️
It`s always been about how much adoption,what Percentage will #Ripple and #XRP get of the remittance/clearing/settling derivatives market? https://t.co/RrbvzBceKU— Digital Perspectives #LevelPlayingField (@DigPerspectives) August 7, 2023
Projections of XRP Price Surging to $1,896.23 Met With Mixed Reactions Amidst Realism Check
Mr Man, another active member of the XRP community, shared the calculations behind this eye-catching projection. He emphasized that while the projection is intriguing, investors should approach it with a healthy dose of scepticism. The calculations were based on the current market capitalization of XRP and an assumption that XRP could capture 10% of the massive derivatives market, which is estimated to be a staggering $1 quadrillion.
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According to the projection, if XRP were to process 10% (equivalent to $100 trillion) of the derivatives market with its current market capitalization, the price of XRP could potentially soar to $1,896.23. This calculation was premised on an XRP market cap of $34.9 billion, which, at the time of the calculation, stood at $32.6 billion. However, critics within the XRP community swiftly identified flaws in the calculation.
The XRP Myth Busters NFT Twitter account pointed out a crucial concern to the community
The assumption is that all derivatives trades would occur simultaneously with the entire circulating supply of XRP. This unrealistic premise raised doubts about the accuracy of the projection and the feasibility of such a scenario.
That calculation is very flawed. It supposes that all the derivatives trades would be made at the same time with the entire circulating supply of XRP. Nonsense.
In reality you can't even remotely estimate the price of XRP based on any industry that would use it. Too many…
— XRP Myth Buster (@XRPMythBuster) August 7, 2023
Reactions within the XRP community have been diverse. While some members cautiously embrace the potential for a significant price surge, others emphasize the need to consider the multitude of variables that can influence the value of XRP. Factors like market volatility, regulatory changes, competition from other cryptocurrencies, and the intricacies of the derivatives market all play pivotal roles in shaping the trajectory of XRP’s future price.
Amidst the excitement and speculation, investors are reminded to approach such projections with a healthy dose of scepticism. While the idea of XRP reaching a price of $1,896.23 is undoubtedly enticing, the reality is much more complex. As the cryptocurrency landscape continues to evolve, Ripple’s involvement in the derivatives market is expected to have repercussions on the value of XRP. However, accurately predicting price movements in the volatile crypto market remains a challenge, even for the most passionate analysts.
Currently trading at $0.6210, for XRP to reach the projected price of $1,896.23, it would need to rally by an astounding 305,251%. This percentage highlights the overly ambitious nature of the projection. Additionally, reaching a price of $1,896 would result in XRP’s market capitalization surpassing $100 trillion, assuming a circulating supply of 52.7 billion tokens.
In conclusion, while the XRP community is filled with anticipation regarding Ripple’s involvement in the derivatives market and the potential impact on XRP’s value, a balanced perspective is crucial. Investors should recognize the intricate interplay of various factors and exercise caution when evaluating projections, as the crypto market’s inherent volatility makes precise predictions a challenging endeavour.
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