Will XRP hit $10,000? ... it might one day, but I don't think that day is near.
When I calculated the $324 target, I strictly accounted for "global markets utilizing crypto and utility based pricing". I explained the evaluation of market cap and market value, available supply, the expected supply shock, velocity, ODL and how the AMM works.
I factored in XRP being used for liquidity, the XRP to be locked up, the incoming capital influx, and calculated it according to the Liquidity Coverage Ratio.
When we aggregate global markets and the DTCC, we already arrive at a staggering figure of 7-8 quadrillion.. and currently over $400 trillion in assets are waiting to be tokenized.
Thankss to its high velocity and wide infrastructure pipes, XRP is already extremely efficient. However, since the future will be MULTI CHAIN, XRP won’t have to carry the entire global workload alone.
But while this is happening the utilization of other assets will still drive utility to XRP, thanks to XRPL...
This is exactly why I believe a $150-$325 range is a perfectly reasonable and grounded target "for now"
My posts are for informational purposes only.
Not a financial advice
Everyone is responsible for themselves.
DYOR
How XRP will reach $300 (324.22) *Part 5*
Mathematical and formulaic explanation
The reason I always set a $300 target is because my mathematical calculations explicitly point to $324.22. This price is the inevitable outcome of the liquidity velocity and institutional pool depth calculations behind the asset.
This number is not a randomly chosen, imaginary target, it is the exact mathematical intersection on the XRP Ledger between the Equation of Exchange (MV = PT) by the famous economist Irving Fisher, and the "Collateral Buffer" rules mandated by Basel III standards.
When conducting this calculation, we do not base our data on retail exchanges. Instead, we use the most concrete and solid global volume data that the institutional financial system is required to carry:
Liquid Available Supply (A): The free-floating supply ready to circulate within seconds at the exact moment of the "flip the switch" (after deducting locked structures) is roughly between 15 billion and 20 billion XRP. (The safest lower limit of 15 billion XRP has been used for this calculation).
Daily Targeted Institutional Volume (T): The daily total share flowing into the XRP tunnel from DTCC clearing operations, CME derivative collateral, and first-stage cross-border Nostro/Vostro liquidity flows: $1.2 Trillion / Day.
Regulatory Safety Buffer Multiplier (B): The mandatory depth multiplier required in the pool under Basel III and LCR (Liquidity Coverage Ratio) laws to prevent the system from locking up during instant, large-scale transfers is 4.
In the architecture of financial automation, the price (P) is found by the ratio of instantaneous transaction volume (PT) to the available liquid supply (M) in the system. However, since the system must flow uninterrupted, we must multiply the daily volume by the regulatory buffer coefficient.
FORMULA:
Price (P) = (Daily Volume * Regulatory Buffer Multiplier) / Liquid (Available) Supply
PLUGGING IN THE DATA:
Required Instantaneous Liquidity Pool Size: $1.2 Trillion * 4 (Buffer) = $4.8 Trillion
Available Liquid Supply (Mechanical Constraint): 15 Billion XRP
Price (P) = 4,800,000,000,000 / 15,000,000,000
Base Price (P) = $320
Every time a transfer occurs on the XRP Ledger, a very small amount of XRP is permanently destroyed (burned) as a transaction fee within a tenth of a second.
When we consider that global finance will enter this pipeline via tens of thousands of automated API orders per second,rotating millions of dollars in transfer volume every single moment, the factors of "supply contraction" and "slippage margin" on the network must be factored into the equation.
To maintain maximum depth efficiency and eliminate friction while institutional automated software (APIs) sweeps the order books, a network friction and depth margin of roughly 1.32% is added to the price:
$320 * 1.0132 = $324.22
XRP Velocity doesn't replace liquidity depth. You need to consider the "simultaneous" volume of global transactions
My posts are for informational purposes only.
Not a financial advice.
Everyone is responsible for themselves.
DYOR