Ripples Latest Acquisition Could Enable XRP to Process $1.5 Trillion, Potentially Leading to a Major Price Surge, Says Expert
Ripple's $1.25 billion acquisition of prime broker Hidden Road has sparked renewed speculation around XRP handling trillions in institutional liquidity.Following comments from Ripple CTO David Schwartz regarding the acquisition, XRP community influencer Zach Rector presented an analysis of how the deal could impact XRPs price and adoption.For context, Ripples purchase of Hidden Road is one of the most significant acquisitions in the crypto scene. Schwartz revealed that Hidden Road processes over $10 billion in daily liquidity across traditional financial markets. However, these transactions often take up to 24 hours to settle using legacy financial systems. Ripple's CTO highlighted that a "portion" of Hidden Road's massive transaction volume could soon be processed on the XRP Ledger (XRPL).This would enable faster and more efficient settlement. At the same time, it would inject a fresh wave of institutional liquidity into the XRP ecosystem. Accordingly, Schwartz described the acquisition as a defining moment for XRP.Unsurprisingly, the XRP community took note. Enthusiasts are now speculating on the scale of capital that could eventually flow through the XRPL.The Math: How XRP Could Handle Trillions AnnuallyBuilding on Schwartz's statements, Rector crunched the numbers to illustrate how even a fraction of Hidden Roads liquidity could drive enormous settlement volume through the XRPL.He reiterated his long-held belief that XRP only needs to capture a small percentage of institutional flows to see significant price appreciation. He believes Ripples acquisition and Schwartzs remarks further validate that belief. According to the Rectors breakdown of potential daily and annual flows through the XRPL: 10% of Hidden Roads liquidity: $1 billion per day, translating to roughly $300 billion annually 30% of liquidity: $3 billion daily, or $900 billion to $1 trillion annually 50% of liquidity: $5 billion per day, totaling over $1.5 trillion annuallyhttps://twitter.com/ZachRector7/status/1909988530459455938From "Crazy" to "Inevitable"?Rector claims these figures confirm that XRPL is in a position to handle trillions in financial flows, turning what once seemed like a fantasy into a growing reality. He sees new credibility to the XRP communitys long-standing vision of XRPL processing trillion-dollar transactions.Some XRP supporters believe that for XRPL to process trillions in value realistically, XRPs unit price must rise substantially. Notably, XRP's price is $1.98, and its market cap is $115 billion. Proponents argue that the networks capacity to handle multi-trillion dollar flows would necessitate a significantly higher market capitalization in the multi-trillion range.While still speculative, Ripples acquisition of Hidden Road has potentially laid the groundwork for this long-held theory to materialize.
Text source: The Crypto Basic
