Let me tell you about a little coin that’s been causing quite the buzz, XRP. You might know it as Ripple’s golden child, but lately, it’s been the talk of the town for a whole new reason.
Crypto analyst Zach Rector has gone out on a limb, claiming XRP could hit $15 per token. That’s no small leap from its current price of around $2.
The ETF factor
Rector’s forecast isn’t based on wishful thinking, it’s rooted in numbers. He’s banking on institutional inflows driven by XRP ETFs.
According to JPMorgan’s earlier estimates, these ETFs could pull in anywhere between $4 billion and $8 billion in their first year.
Rector plays it safe and sticks to the lower end of that range, arguing that even $4 billion could shake things up big time.
Rector uses something called the market cap multiplier to explain his bullish outlook. This fancy term basically measures how much an asset’s market cap grows compared to the money flowing into it.
And let me tell you, XRP has shown it can be wildly sensitive to new capital. Case in point, back on April 12, XRP’s market cap jumped by $7.74 billion in just eight hours, off a mere $12.87 million in inflows. That’s a multiplier of 601x. Crazy, right?
Rector tones it down for his main analysis, using a more conservative multiplier of 200x.
Even then, he says $4 billion in inflows could boost XRP’s market cap by $800 billion, taking its total valuation to nearly $925 billion. With a circulating supply of 60 billion tokens, that math puts XRP at, you guessed it, $15 per coin.
Optimism meets reality
Now, let’s zoom out for a second, because the market vibes are indeed looking good for XRP lately.
Nine big-name financial institutions, including Grayscale and Ark Invest, have filed for spot XRP ETFs with the SEC. Add to that Ripple’s legal win over the SEC last year, and you’ve got a recipe for optimism.
But here’s the catch, not all crypto ETFs have been smashing successes. Ethereum ETFs launched last year and only pulled in $2.28 billion so far, not exactly setting the world on fire.
Rector himself admits that institutional adoption doesn’t always move as fast as people hope.
Global moves
Meanwhile, international markets are warming up to XRP. Brazil recently approved a spot ETF for the token, and NYSE Arca debuted a leveraged XRP ETF earlier this month.
These moves show growing global acceptance, but will they be enough?
So, is $15 per XRP realistic? Maybe not tomorrow or next week, but Rector makes a compelling case for why it could happen under the right conditions.
For now, all eyes are on those ETFs and whether institutional money will finally flood into Ripple’s ecosystem.
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