Just Some Perspective: Why Ripple Will Not Go To $10 dollars... Will Never Go to $100
Alright, so Ripple has just past Ethereum to take the #2 spot in crypto market capitalization with a market cap of $87 Billion compared to Ethereum’s $72 Billion
To do this, Ripple has surpassed a weighted average price of $2.00 with a circulating supply of 38.7 Billion tokens.
Ok so what’s your point? Why won’t Ripple go up more? To many newcomers in the crypto space, purchasing Ripple (XRP) seems like a “logical” choice due to it’s low price point. Many people believe because other coins in the top 10 CMC (coinmarketcap) are in excess of $10, Ripple should be able to reach that mark. However, those who make this assumption fail to “zoom out” and realize the absurd amount of value Ripple would represent if it hit $10.
So let's see...
With 38.7 Billion circulating tokens, a $10 per Ripple valuation would bring the Ripple’s market cap to a staggering: 38.7 B * $10 = $387 Billion
In other words, at the current overall crypto market cap of 610 Billion, Ripple would comprise over 50% of the overall market cap.
With a $100 per Ripple valuation, the market cap would be even more unfathomable at $3.87 Trillion. Should Ripple be worth 20% the GDP of the United States? No. Should Ripple be worth nearly the GDP of Japan? Hell No.
While there is no hard and fast rule that a single cryptocurrency can't be worth hundreds of billions or perhaps trillions, it's important to assign valuations that are consistent with the overall impact of the thing you're valuing. And I can tell you right now, Ripple is by no means even close to reaching the economic importance of Facebook, Microsoft, or Alibaba and will never be significant enough to represent of value of major national GDPs.