XRP Reaches $100 Trillion? Analysts Point Out That Collateral is Key

The idea that XRP could one day support a valuation of $100 trillion has once again entered discussions among investors. This argument comes from xrpl_Adam, a market commentator who believes that the demand for Ripple's token as "locked collateral" has this potential.

His reasoning contradicts one of the most commonly cited arguments in the community: that the massive payment volume is sufficient to support high prices. For this analyst, what truly matters is whether large banks and financial institutions will begin to accept this asset as collateral.

In an article he published on July 29 on platform X, he dismissed the usual comparisons to the SWIFT system, which transfers about $5 trillion daily. If bridging assets can settle in 3 to 5 seconds, they could be reused dozens of times throughout the day.

If this portion of funds turns over 100 times, then a daily flow of $5 trillion would only require about $50 billion in actual circulation. "Volume does not determine price. Idle inventory is key," the analyst stated.

According to his calculations, there are about 100 billion tokens issued, of which 32.4 billion are held in escrow, leaving approximately 62 billion available for trading. CoinGecko notes that the circulating supply is 62.533 billion units.

In this calculation, if the price of XRP is $100, the market cap would approach $10 trillion. If the price is $1,000, the network's market cap would reach about $100 trillion.

The comparison used is gold, whose value comes from being held rather than constantly circulating among buyers. The assets used for staking remain locked throughout the holding period.

As a signal moving in this direction, the analyst mentioned Ripple's acquisition of Hidden Road for $1.25 billion; the company has since been renamed Ripple Prime. KBRA, registered with the SEC, granted the company a "BBB issuer" rating on April 2 and a "BBB" rating for senior debt on July 8.

Nevertheless, Ripple's collateral list and KBRA's report do not include XRP as a qualified asset. CEO Brad Garlinghouse only regarded this topic as a future goal in May.

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