The article discusses how XRP, the cryptocurrency, is capable of reaching high prices and challenges the belief that its market cap is a limiting factor. It highlights the recent rally of XRP and its surge past key psychological levels. The article mentions bullish forecasts that predict prices as high as $27 and $33 for XRP. Market analyst Zach Rector debunks the market cap myth by explaining how XRP's market cap can grow with small inflows of capital. He explains that XRP exhibits a unique market cap multiplier effect, where small amounts of capital inflow can greatly increase its valuation. Rector provides examples of the multiplier effect in action, with real-world data showing significant increases and decreases in market cap with relatively small inflows and outflows of capital. Rector also notes the potential impact of ETF inflows on XRP's price, citing a report by JP Morgan estimating $4-8 billion in inflows for XRP ETFs. Rector argues that applying the market cap multiplier effect to these inflows would result in a significant increase in market cap and push XRP's price to $33. He counters the belief that trillions of dollars are required to push XRP's market cap to the trillion-dollar range, stating that the multiplier effect makes it achievable with much less capital.
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