Top Financial Advisor Explains the Math Using Forex Market Data

A top financial advisor outlines how XRP could attain $125 per token, using hypothetical calculations based on the Forex market volume.

XRP continues to trade around the $0.55 region with negative trajectories across weekly, monthly, and even yearly timeframes. Essentially, XRP’s price has been unimpressive. Meanwhile, pundits in the crypto community continue to foresee a future where the asset trades beyond even three-digit values.

Whiplash, a widely followed financial advisor in the crypto community, is the latest to argue XRP’s potential to attain values beyond $100. He expressed this sentiment in a recent post on X.

Mathematics of XRP Attaining $125 

In the post, he speculatively outlined the mathematics behind how a $125 price point for XRP could be attainable. Specifically, this eye-catching figure stems from a calculation based on the assumption that XRP could one day handle a significant portion of the daily trading volume in the global foreign exchange (Forex) market.

First, Whiplash noted that XRP has a maximum supply of 100 billion tokens, with around 60 billion in circulation. He pointed out that the Forex market saw trading volumes reach $7.5 trillion per day in April 2022.

Whiplash speculates that if XRP were to facilitate this level of transaction volume, the value of each token could theoretically reach $125. He arrived at this value by dividing the FX market volume by XRP’s circulating supply of 60 billion. 

Essentially, this mathematics suggests that for XRP to have sufficient liquidity to process a $7.5 trillion market volume, the token must be worth at least $125. For context, XRP currently sells for $0.5656. Reaching the speculative price of $125 implies an astonishing 22,000% increase.

How XRP Holders Could be “Earning” $100K

However, the entirety of XRP’s supply is not under the control of a single entity. This weakens the assumption that all of XRP’s supply would be used to process FX market transactions.

Interestingly, Whiplash proposed a solution. He suggested that instead of selling XRP at such high values, holders could stake or loan their tokens to facilitate transactions, potentially earning significant returns.

In particular, Whiplash speculated that with XRP valued at $100 per token, owning just 1,000 XRP could yield $100,000 per day from staking, assuming a 100% return—though actual returns would likely be much lower, similar to interest on a loan.

It is important to note that these scenarios are highly speculative and assume XRP’s adoption on an unprecedented scale. It is also improbable that XRP alone would process the FX market’s $7.5 trillion volume, as other players are present.

Moreover, critics have continued to dismiss this popular mathematics as wishful thinking. Nonetheless, it highlights the growing interest and optimism surrounding XRP’s future potential.

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/2024/08/17/xrp-to-125-top-financial-advisor-explains-the-math-using-forex-market-data/?utm_source=rss&utm_medium=rss&utm_campaign=xrp-to-125-top-financial-advisor-explains-the-math-using-forex-market-data