XRP Can Hit $23 at $1.29T Market Cap if It Records $500M Daily ETF Inflows for a Year – The Crypto Basic

XRP could achieve its target price of $23.64 with a market cap of $1.29 trillion if it consistently records $500 million in daily ETF inflows for a year.

The XRP community Spot-based XRP ETF In the US market. These voices have grown louder as controversy continues over the spot Bitcoin ETF product launched last month.

Now, Flows into Spot Bitcoin ETF continue And with the visible impact on Bitcoin prices, discussions surrounding spot XRP ETF products have emerged. Professional game developer Chad Steingraber has reignited this debate amid a series of disclosures about crypto investment products.

Steingraeber pointed On February 14th, it was announced that XRP recorded inflows into its investment product of just $500,000 in the four-week period from January 19th to February 9th. According to him, this reduction in capital inflows is part of the reason for the slowdown in XRP’s growth.

He compared XRP’s inflows to the capital flows recorded by Bitcoin, which totaled $1.089 billion in the seven days ending February 9. Bitcoin daily inflows have also reached multi-million dollar territory, supported by recently approved ETFs.

Steingraber emphasized that: BlackRock’s iShares Bitcoin Trust (IBIT) alone recorded $500 million in inflows on February 13th. This marked his highest inflow in a single day. The game designer presented a hypothetical scenario where XRP would witness similar inflows every day.

XRP could reach $23 with market cap of $1.29 trillion

In a recent post, he detailed the impact such inflows could have on XRP’s market capitalization. Specifically, if XRP had $500 million in inflows, using the Bank of America (BoA) multiplier that sets the ratio of capital inflows to market valuation at 1:10, this would add $5 billion to the market cap. There will be an additional dollar amount.

Expanding further on how this is constructed, it looks like this:

5 billion dollars in 6 days #XRP Current market capitalization ($30 billion)
21 trading days (monthly average) market capitalization is $105 billion
In a year, #XRP The market capitalization is…

$1,56 trillion <—that's just one asset management company https://t.co/DgMeSuRUE3

— Chad Steingraber (@ChadSteingraber) February 16, 2024

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Steingraber emphasized that if this level of inflows continued for six days, XRP’s current valuation would be $30 billion. Considering his average trading day each month is 21, that’s an additional $5 billion. XRP market capitalization Daily valuations lead to an additional valuation of $105 billion per month.

If the market maintained this for another year, XRP’s market cap would reach an additional $1.26 trillion, whereas Steingraber incorrectly predicted it would be $1.56 trillion. Meanwhile, XRP’s market capitalization is currently $30 billion. Adding $1.26 trillion brings the market cap to $1.29 trillion.

XRP circulating supply Assuming that 54 billion tokens have been fairly stable over the past year, this $1.29 trillion market cap translates into a price of $23.64. At XRP’s current price of $0.5579, the token would need to surge 4,137% to reach the price of $23.64.

However, the feasibility of this hypothetical scenario is still under debate. In particular, this presentation focuses on the potential impact if a spot-based XRP ETF product were to launch in the United States and experience similar demand to Bitcoin ETFs.