XRP would need to rally to a price of $1.6, $4.3, or $11.1 to successfully overtake Tether (USDT), Ethereum (ETH), or Bitcoin (BTC) in market capitalization.
Following the recent rally induced by the Ripple vs. SEC case ruling, XRP overtook BNB in market capitalization. Consequently, the asset sealed its position as the fourth-largest cryptocurrency on the market.
Due to its potential, several market watchers discuss the possibility of XRP overtaking Tether (USDT), Ethereum (ETH), or even the firstborn crypto, Bitcoin (BTC). However, to achieve this feat, XRP must embark on momentous rallies supposing its circulating supply remains fairly fixed.
Prominent crypto community influencer Vincent Kennedy highlighted this requirement in a recent tweet.
If XRP takes over USDT (Tether) for the number 3 spot the price will be $1.60ish per XRP
If XRP takes over ETH (Ethereum) for the number 2 spot the price will be $4.80ish per XRP
If XRP takes over BTC (Bitcoin) for the number 1 spot the price will be $9.60ish per XRP
— Vincent Kennedy (@VincentCrypt46) July 20, 2023
Tether (USDT)
Being the largest stablecoin by valuation, USDT boasts an impressive market capitalization of $83.81 billion. Its market cap reflects its circulating supply since it maintains parity with the dollar.
This market cap makes USDT the third largest crypto asset, only behind BTC and ETH. However, XRP’s market capitalization is less than half of USDT’s, currently at $40.54 billion with a circulating supply of 52.5 billion.
XRP is currently trading for $0.7714 at the reporting time. Vincent rightly emphasized that XRP’s goal to overtake USDT would only materialize if the asset can rally to the $1.60 price territory.
This would mark a 107% rally. Industry players believe this price target is feasible, considering it is below XRP’s all-time high.
Ethereum (ETH)
Overtaking USDT might be easier for XRP, but taking over Ethereum’s position could prove more difficult. ETH has a market cap of $227.64 billion, solidifying its position as the second-largest crypto asset. ETH’s valuation is almost three times USDT’s.
According to Vincent, for XRP to overtake ETH in market cap, it would need to rally to the $4.80 price territory. However, considering its current circulating supply, a rally to $4.30 would be enough for XRP to overtake Ethereum as the second largest crypto asset. This would require a 457% increase.
It bears mentioning that XRP had overtaken Ethereum in market capitalization in the past. Notably, XRP’s price surges in 2017 and 2018 boosted the asset enough to displace ETH as the second-largest asset on three occasions.
Bitcoin (BTC)
Being the firstborn crypto, Bitcoin remains the leading crypto asset in the market. BTC has not relinquished this position to any other cryptocurrency throughout its history. As a result, XRP’s goal to dethrone the asset would not be an easy task.
Market watchers project Ethereum as the only asset capable of overthrowing Bitcoin’s dominance in an event aptly labeled “the flippening.” BTC has a valuation of $581 billion. For ETH to overtake this, it must rally by 156% to $4850.
However, for XRP to overtake Bitcoin, it would need to soar by a whopping 1,338% to a price of $11.1. Vincent had put this figure at $9.6. Notably, these projections are only valid if the other assets remain stagnant. However, that’s unlikely to occur due to the close correlation between assets in the crypto market.
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Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
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Source: https://thecryptobasic.com/2023/07/22/xrp-needs-to-hit-1-6-4-3-or-11-1-to-overtake-usdt-eth-or-btc/?utm_source=rss&utm_medium=rss&utm_campaign=xrp-needs-to-hit-1-6-4-3-or-11-1-to-overtake-usdt-eth-or-btc