As far as cryptocurrency is concerned, the question that most Nigerians, including me, would always have is whether a coin will increase in value. This is the same question people have been asking years about XRP, the digital asset related to Ripple. XRP is one of the most popular coins in the crypto arena. It has the reputation of being quick, cheap to transmit, and the topic of conversation when matters of regulation arise. However, the big question that keeps on being posed by traders and investors is a simple question: is XRP ever going to reach 10?
To provide an answer to this question, we have to consider various variables such as the history of XRP, the position of Ripple, the regulatory issues, adoption patterns, tokenomics, market psychology, and global financial systems. Through data verification and scrutinizing all these variables, we will be able to make a better judgment on whether XRP will reach $10.
Ripple Labs is the developer of XRP, which was developed in 2012. Ripple constructed XRP to enable financial institutions to make cross-border payments easily, unlike Bitcoin which was designed to be completely decentralized and not dependent on banks. The concept here was that banks and payment providers could send money across borders more cheaply and quickly using the technology of Ripple rather than the old SWIFT system.
During the 2017-2018 bull run, XRP hit a high of $3.84 in January 2018. This was a time when the entire crypto market was on fire and a lot of coins were touching record highs. Since that time, XRP has not been able to approach such a price. Throughout the year 2019, 2020, and even 2022, XRP remained below $1, primarily because of legal problems with the United States Securities and Exchange Commission (SEC).
In December 2020, the SEC sued Ripple, arguing that XRP was marketed as an unregistered security. This legal fight has been among the largest factors preventing XRP to expand as much as other currencies such as Bitcoin and Ethereum have over the past years. The case began with many exchanges in the U.S. delisting or halting XRP trading.
In 2023, however, Ripple achieved a partial legal victory as a judge ruled that the sale of XRP on exchanges was not the sale of securities. This provided XRP with a massive boost and the price shot up temporarily. Although the case is yet to be completely resolved, the victory has provided investors with optimism that XRP may at last be able to breathe some room to develop.
In case Ripple completely wins the case against the SEC, it may lead to the re-listing of XRP on American exchanges such as Coinbase and increased adoption. This is among the major reasons that may drive the price closer to 10 in the long term.
Market cap calculation is one of the key aspects that we Nigerians who invest in crypto should know. The total supply of a coin times the price of the coin is the market cap. The maximum supply of XRP is approximately 100 billion tokens, and approximately 55 billion of them are circulating.
To reach XRP 10, the market cap would be:
55 billion x $10 = $550 billion.
This would put XRP nearly as large as the market cap of Bitcoin at its all-time high in 2021. Bitcoin had previously a market cap of over 1 trillion hence though 550 billion is large, it is not unattainable in the crypto world. It would, however, take an enormous amount of global uptake, by retail investors and financial institutions alike, to propel XRP that high.
The real-world utility is one of the strongest sides of XRP. Most coins are based on speculation only, but XRP is intended to be used in actual financial transactions. Ripple has established collaboration with a number of banks and payment providers all over the globe, particularly in Asia, Africa, and Latin America.
In Nigeria, where international money sending and receiving can be expensive and time-consuming, XRP can be of massive importance. Nigerians remit via crypto and a quick, inexpensive coin such as XRP is appealing. As more African banks or fintech firms implement the Ripple system, the XRP demand will go up.
The greater the number of financial institutions that liquidity and settle using XRP, the greater the likelihood of the price of the XRP increasing. This utility makes XRP have an advantage over certain other coins that only increase due to hype.
Crypto works in cycles. We have bull runs, when prices increase at a high rate, and bear markets, when prices fall and stay low a certain period of time. New bull runs typically occur as a result of Bitcoin halving events, which occur every four years. A large number of investors feel that the upcoming halving in 2024-2025 has the potential to generate another wave of growth in the crypto space.
When the entire market goes up once more and Bitcoin goes up to new levels, XRP will also tend to gain. In the past, altcoins such as XRP tend to move in the same direction as Bitcoin. This implies that should Bitcoin rise to $100,000 or beyond in the next bull run, XRP may have the momentum to rise, potentially to $5 or even to $10.
Community support is another price determinant. XRP boasts one of the most ardent and devoted crypto communities. The so-called XRP Army of people is highly convinced that XRP is going to be the world bridge currency of cross-border payment. This firm conviction has made the coin survive even in the worst moments.
This psychological push can assist in driving demand, should large groups of retail investors, including Nigerians who are seeking financial freedom through crypto, keep buying and holding XRP. Belief by the investors coupled with institutional adoption may at times produce a strong upward force within the market.
Although there are numerous positive aspects of XRP, we should also be realistic with the challenges. To begin with, Ripple continues to face regulatory fights not only in the U.S., but also in other nations. In case new regulations categorize the XRP in a manner that restricts its application, the price might not be able to increase.
Second, the competition is increasing. Other blockchain projects include Stellar (XLM), new blockchain-based experiments by SWIFT, and even central bank digital currencies (CBDC). These may restrict the adoption of XRP in future.
Third, the abundance of XRP can decrease the increase in price. The supply of XRP is 100 billion of coins as compared to Bitcoin, which has only 21 million coins, meaning that it requires more money to drive the price up. This complicates reaching 10 more, but not impossible.
Being a Nigerian that has experienced the hardships of our financial system, I can tell why so many people are optimistic about coins such as XRP. The XRP reaching a price of 10 is not simply a dream, it can become a reality provided that the adoption increases and the legal battles are won. Nevertheless, investors should also be prudent and know the risks. The crypto market is volatile and although statistics indicate that it is possible to reach $10, it is not certain.
Ultimately, the XRP is a tale of perseverance, community faith, and practical use. It will be one of the most valuable coins in the crypto space regardless of whether it reaches 10 or not. Until then, we can only observe the data, keep up to date and make prudent choices as we proceed in our adventure in the cryptocurrency world.
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