Right now, Bitcoin (CRYPTO: BTC) and Ethereum (CRYPTO: ETH) are the two juggernauts of the crypto world. Together, they have a combined market cap of $1.4 trillion. That’s 70% of the entire value of the crypto market.
However, the recent shakeout in the crypto market could clear the way for new altcoins to take over as market leaders. The one I’m keeping my eye on is XRP (CRYPTO: XRP). Within the next few years, it might be worth more than the combined market caps of Bitcoin and Ethereum today.
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The path to $1.4 trillion
On the surface, this prediction might seem impossible, if not downright ludicrous. After all, Bitcoin is “digital gold,” and Ethereum is “digital silver.” Both have been best-in-class for more than a decade, and it seems almost inconceivable that they could ever lose their top spots as the world’s most popular cryptocurrencies.
But let’s do a little crypto math. Right now, XRP has a market cap of $65 billion, while Bitcoin and Ethereum have a combined market cap of $1.4 trillion. So, roughly speaking, XRP will need to find a 20x catalyst in order to catch up and close the gap. Given that XRP is currently trading for just $1, that implies XRP will need to become a $20 crypto.
Does XRP have a 20x catalyst?
The good news is that a 20x catalyst for XRP might actually exist. Over the past few years, Ripple (the fintech company behind the XRP token) has spent over $3 billion on crypto- and blockchain-related acquisitions, all with the goal of making XRP the centerpiece of a global, end-to-end blockchain-powered payment network.
As a result, institutional adoption of the XRP blockchain appears to be on the upswing. As new use cases for XRP emerge, they should lead to a higher valuation for the XRP token. One of these use cases is real-world asset (RWA) tokenization, which is already projected to be a multitrillion-dollar market opportunity.
Is a $20 price target for XRP realistic?
These future growth forecasts are what have led to some truly astronomical price predictions for XRP. It’s not hard to find price predictions for XRP as high as $100. Some price targets for XRP are soaring to $500.
Admittedly, many of these are not very realistic. They usually include an outlandish assumption, such as the XRP blockchain ledger eventually replacing the SWIFT payment network for cross-border payments.