Crypto expert CharuSan has once again responded to his prediction that XRP could rise above $300. He expressed concerns that the the potential market capitalization of tokens makes it impossible to achieve this goal, highlighting why market cap has no impact on XRP.
Expert points to a trillion-dollar market that could push XRP above $300
In one X messageCharuSan alluded to the $27 trillion sitting idle in global Nostro/Vostro accounts, the huge volumes in the foreign exchange markets, major banks, DTCC clearing and institutional firms as the reason why XRP could rise above $300. He noted that on this basis, it is necessary to prevent the system from crashing so that a bridge asset with this volume can reach a value of $10 trillion.
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The expert noted that XRP is an institutional bridging asset and a liquidity instrument specifically designed to settle large amounts cross-border value transfers without slipping. He also said that market capitalization is a measure of stocks, and not of institutional bridge assets or liquidity instruments like XRP. Charusan further explained how the market is wrong by focusing on market capitalization.
He said traditional financiers are making a mistake when they say a market cap of $8 to $10 trillion is too big. CharuSan noted that market capitalization does not mean that all circulating coins will be cashed out at that current price. Instead, it is simply the unit price of the last executed transaction multiplied by the supply.
CharuSan had previously predicted that XRP would rise to $300 as it is accepted by banks to settle cross-border transactions. He explained that the token must have a high price to avoid bottlenecks or massive slippages when banks use it for settlements. The analyst mentioned that too the CLARITY Act will drive the adoption of XRP by banks.
Why XRP Might Be Undervalued
On-chain analytics platform Santiment has explained why XRP could see a recovery soon. In one X messagethey noted that the average XRP trader active in the past 30 days is down about 47%, with many sales at the bottom. Santiment stated that historically the ratio between market value and realized value (MVRV) will always average 0%, making the current period an “extreme” zone for XRP.
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Santiment noticed that XRP’s 30-day MVRV has fallen to the lowest level since December 2020, indicating that fear and frustration among traders have reached rare extremes. This has historically preceded strong rebounds, indicating that a recovery may be in store for XRP. The platform added that this deep negative MVRV zone creates conditions where even small positive catalysts can trigger a strong recovery.
At the time of writing, the XRP price is trading around $1.32, down in the past 24 hours, according to facts from CoinMarketCap.
Featured image from Adobe Stock, chart from Tradingview.com