Top Business Leader Corrects XRP Market Cap Myths, Says Traditional Valuation Models Dont Apply
Jake Claver, a business leader and consultant, recently challenged what he considers "misconceptions" about XRP market cap.According to him, traditional valuation models dont apply to XRP. In a detailed post, Claver compared XRPs role in the financial system to that of a global highway rather than a single product-producing company.He argued that many investors attempt to value XRP using stock market principles, treating it like a company with revenues and profits that are assessed based on share price performance.Claver refuted this approach. He emphasized that XRP operates as a high-volume liquidity and settlement network designed to handle trillions in daily transactions. As such, valuing XRP using the traditional market cap system "does not make sense."Notably, this perspective seeks to counter those who believe XRP's valuation could not reach trillions of dollars.For instance, some ambitious XRP enthusiasts have suggested that XRP's unit price could be $100 to $1,000. Notably, these prices would necessitate a market cap of $10 trillion to $100 trillion, considering XRPs 99.99 billion supply. As a result, critics argue that such projections are far from in touch with reality. Meanwhile, other commentators, like Claver, argue that such market cap calculations do not apply to XRP.XRP Role in Global TransactionsAccording to Claver, XRPs value proposition lies in its ability to efficiently move large sums of money, making it an essential tool for banks and financial institutions.He noted that the demand for XRPs liquidity increases as adoption grows, potentially driving its price higher. He stressed that higher XRP prices benefit the entire network by increasing its capacity to handle large-scale transactionssimilar to adding more lanes to a congested highway.XRPs Potential Beyond Traditional LimitsFurthermore, Claver also pointed out that the financial world once believed trillion-dollar valuations were impossible. Meanwhile, companies like Apple, Microsoft, and Saudi Aramco have shattered those expectations.Accordingly, Claver suggested that XRPs future valuation could surprise many, especially those who continue to apply "outdated" market cap models.Moreover, one of the biggest errors analysts make, according to Claver, is treating XRP like a stock or a speculative meme coin. Instead, he urged the market to recognize XRPs unique role as a global settlement network that requires substantial liquidity to operate at scale.https://twitter.com/beyond_broke/status/1893844292990316968
Text source: The Crypto Basic
