Analyst Explains Why XRPs Market Cap Doesnt Limit Its Potential
- Market commentator Armando Pantoja argues that traditional market cap calculations dont apply to XRP due to its unique transaction capabilities.
- XRPs high-speed, reusable token design could enable trillions in daily transactions without needing a trillion-dollar market cap.
- Pantoja predicts XRP could reach $10,000 in the future, though his short-term projection for the current bull cycle is $8 to $25 by 2026.
Market commentator Armando Pantoja has shared his views on the true value of XRP, explaining why the traditional market cap model doesnt apply to the cryptocurrency. In a recent tweet, Pantoja emphasized that XRPs unique position in global finance allows it to defy conventional metrics, opening the door to massive long-term potential.
XRPs Unique Position in Global Finance
Pantoja pointed out that XRPs design for high-speed transactionssettling in just 3 to 5 secondssets it apart from traditional assets. Unlike cryptocurrencies like Bitcoin or Ethereum, one XRP token can be reused multiple times per day. This reusability allows XRP to handle trillions of dollars in daily transactions without requiring a trillion-dollar market cap.
Pantoja envisions a future where XRP plays a central role in a tokenized global economy, which he estimates could be valued between one and two quadrillion dollars. Even if XRP were to handle just 10% of this market, it would facilitate trillions in daily settlements, potentially pushing its price to $10,000 or more.
XRP is not just another cryptocurrency. Its a game changer in global finance. Thats why the concept of market cap as a limiting factor does not apply, Pantoja stated.
XRPs Limited Supply and Growing Demand
Another key factor Pantoja highlighted is XRPs limited circulating supply of 99 billion tokens. As demand increases, he argues that the price must rise to ensure global liquidity can handle the massive transaction volumes the coin is designed to process.
Pantoja speculated that as institutions, central bank digital currencies (CBDCs), and governments adopt XRP for cross-border transactions, its price will need to reflect its utility rather than being constrained by traditional market cap calculations.
He likened the coins price dynamics to commodities like oil or gold, suggesting that demand, not an arbitrary market cap, will ultimately determine XRPs value.
While Pantoja believes $10,000 per XRP is realistic in the long-term, he clarified that such a price point is not expected anytime soon. For the current bull cycle, he projected XRP to reach between $8 and $25 by 2026.
Read more: https://thenewscrypto.com/analyst-explains-why-xrp-market-cap-doesnt-limit-its-potential/
Text source: TheNewsCrypto – Blockchain & Cryptocurrency News M
