XRP Price Could Reach $100 If XRPL Captures 1% of $10 Trillion Derivatives Market

The XRP price has the potential to reach $100 if the XRP Ledger (XRPL) is able to capture 1% of the $10 trillion global derivatives market.

The global derivatives market is estimated to be worth more than $1 quadrillion, due to the large volume of traded instruments it encompasses. There were screenings of XRPL capture part of this volume. These projections emerged after Ripple joined ISDA, a leading trade association.

The role of improving liquidity

Remind that reports from last august confirmed that Ripple has joined the International Swaps and Derivatives Association (ISDA), focusing on derivatives. The San Francisco-based payments company joined financial giants such as JPMorgan, Goldman Sachs, Citigroup and BlackRock.

This has sparked speculation that Ripple may be looking to gain a foothold in the derivatives market. With its use of XRPL, such a brand could bring substantial volume to the network. The prospect of higher volume on XRPL bodes well for XRP, being the network’s native token. Notably, the greater the volume on XRPL, the more XRP orders interact.

Notable XDC developer Quincy Jones previously asserted that the price of XRP could be determined by liquidity on XRPL. According to him, whatever instruments are issued on the network, market participants will have to use XRP to move them. According to him, this could propel XRP towards higher prices, including $100. However, he maintained that this remains uncertain.

Jones mentioned that this liquidity could come from issuing bonds, debt, and other financial instruments on XRPL, including through tokenization. Another avenue that could lead to increased liquidity is the derivatives market.

XRP Price Could Reach $100

Vandell Aljarrah, co-founder of Black Swan Capitalist, recently presented an assessment of what the price of XRP could be if XRPL captured a small share of derivatives market volume, say 1%. A 1% share would result in a volume of $10 trillion.

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Its valuation took into account XRP’s maximum total supply of 100 billion tokens. At this figure, he estimated a volume of $10 trillion to arrive at a price of $100 per XRP token. However, this calculation assumes that this $10 trillion volume would be processed in one go, which is very unlikely.

XRP is currently changing hands at $0.5203, up 1.11% in the last 24 hours. A price of $100 from this level would require an upside of 19,119%. Despite the bold nature of this price target, analysts such as Javon Marks have set more ambitious goals at $200. These prices would mark new ATHs for XRP, pushing its market cap to unimaginable levels.

Disclaimer: This content is informational and should not be considered financial advice. The opinions expressed in this article may include the personal opinions of the author and do not reflect the opinions of The Crypto Basic. Readers are encouraged to conduct thorough research before making any investment decisions. Crypto Basic is not responsible for any financial losses.

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