- XRP has returned to the $3 price range for the first time since 2018, prompting investors to anticipate a move to $4 and $5.
- The token’s market cap needs to reach $275 billion for XRP to hit the $5 price point, requiring substantial new investor inflow.
- Three main factors could boost XRP’s adoption: a broader cryptocurrency market rally, expansion of Ripple’s payment network, and regulatory clarity from the SEC.
- Ripple currently has 55 billion tokens circulating, with a market cap around $178 billion, which is below the $200 billion threshold achieved by only Bitcoin and Ethereum.
- XRP is less than one-third the market cap of Ethereum, which stands at $552 billion, highlighting the gap it needs to close for further major gains.
Ripple’s native token, XRP, is trading in the $3 range as of Thursday, reigniting hopes among investors for further price increases to $4 and $5. The last time XRP reached this level was in 2018. The recent surge has led to increased expectations for faster gains, as many look to benefit from a potential bull run in the crypto market.
For XRP to reach $5, its market capitalization would need to climb to at least $275 billion, up from the current $178 billion. This means the token would require approximately $97 billion in additional value. Analysts note that this growth is unlikely without a significant influx of new participants, since most existing holders may be hesitant to increase their positions above the $3 mark.
There are three primary ways XRP could attract more investors. First, if there is a broad rally in the cryptocurrency market, new investors worldwide may take interest. Second, if Ripple expands its blockchain-based payment services to more global banks and financial technology companies, demand for the token could increase. Third, regulatory clarity from the U.S. Securities and Exchange Commission (SEC) regarding ongoing legal issues would help boost investor confidence.
At present, only Bitcoin and Ethereum have market capitalizations above $200 billion. According to data from CoinGecko, Bitcoin’s market cap is $2.2 trillion, while Ethereum stands at $552 billion. XRP remains less than a third of Ethereum’s valuation, indicating the challenge in reaching the $5 milestone.
While Ripple has a circulating supply of 55 billion tokens, its journey to higher price points depends on market growth, technology adoption, and regulatory decisions. Investors continue to monitor these factors as the market evolves.
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