Outside Source
TL:DR;
- Ripple’s cross-border token became one of the best performers in the cryptocurrency market on a monthly scale at one point, but can it go even higher?
- ChatGPT and Perplexity weigh in on the factors needed for its market cap to skyrocket to the $1 trillion mark.
XRP at $1T?
Recall the price developments around XRP shortly after Donald Trump won the 2024 US presidential elections. After a sluggish start, while the rest of the market was climbing, Ripple’s native token exploded in the following weeks, especially after current SEC Chair Gary Gensler announced his upcoming departure from the agency.
At one point, XRP’s price tag had skyrocketed by over 400% and neared $3 on a few occasions. While the community anticipated a surge past that level and a new all-time high of over $3.4, the asset retraced and even slumped below $2 earlier this week during the market-wide correction.
Now, though, XRP stands around $2.5, with a market cap of just over $140 billion. In order to tap the coveted $1 billion mark in market cap, its price would have to go up to around $17.5 per token. As of now, it seems like a tall order, but ChatGPT has outlined the potential factors that could lead to such a massive increase.
Perhaps the most important part is the overall market sentiment. As long as the bull market remains intact, XRP has the potential to rise further, even perhaps going into double-digit territory. The other factor highlighted by ChatGPT and Perplexity is the adoption levels.
“Ripple has positioned XRP as a bridge currency for cross-border payments. If financial institutions globally adopt Ripple’s solutions, it could drive demand for XRP.
Partnerships with banks and payment providers could lead to increased transaction volume and liquidity.”
Further utilization of the native cross-border token, as well as the upcoming stablecoin RLUSD, could also impact the former’s price movements and send it higher, said the two chatbots.
Challenges
ChatGPT and Perplexity also outlined a few challenges that XRP could face on the way up. Competition from other projects, including other, more established stablecoins, such as USDT and USDC, is among those. The XRPL network also faces different competitors, and XRP’s price could be suppressed if it fails to dominate the market.
The regulatory environment needs to be mentioned in both categories. Should it change and become more crypto-friendly, as Trump promised, it could affect XRP positively. However, if the landscape remains similar during the Trump administration as it has been under Biden, the asset, as well as many other US-based crypto projects, could be harmed significantly.
ChatGPT also mentioned the growing supply of XRP tokens and the potentially growing selling pressure, which could halt its price growth.
“Ripple Labs holds a significant portion of XRP, releasing it periodically. This could create selling pressure, limiting price appreciation.”
This article first appeared at CryptoPotato
