The debate over whether the XRP price could reach $10,000 has been reignited in the crypto market. This time, however, a crypto analyst disputes the common argument that market capitalization could limit XRP’s growth. According to the analyst, this claim is incorrect and does not take into account the liquidity and usefulness of XRP as a global settlement currency.
Why market cap doesn’t limit price appreciation to $10,000
Some critics argue that XRP would never reach $10,000 because this would make the country’s market capitalization larger than the global money supply. Market analyst Crypto_Luke has done that addressed this misconception in a recent X post, which emphasizes that market capitalization does not limit the XRP price in any way.
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The analyst explained that market capitalization is simply the last traded price multiplied by that of a cryptocurrency circulating supplywhich is a snapshot of total trading activity and is not a reflection of how much money is required to reach a certain price. He noted that the common criticism that market capitalization represents the amount of money invested in an asset is incorrect.
One reason why Crypto_Luke believes the market capitalization argument is incorrect is that it doesn’t take into account how XRP works. Unlike assets that are primarily designed for storing value, such as BTC, XRP is designed to store value fast liquidity and settlement via global corridors. He stated that XRP can be used multiple times in a single day, facilitating transactions without the need for additional capital. As a result, he suggests that the price of XRP is determined by the ‘actively traded float’, rather than the total supply that is inactive.
In its analysis, Crypto_Luke emphasized that liquidity and price adjustments go hand in hand in XRP’s design. He explained that assets that move quickly through settlements allow the blockchain network to meet demand without requiring equivalent dollar-for-dollar support. If XRP transaction volume is increasingthe price naturally adjusts to reflect the value of its utility rather than a fixed market capitalization.
The analyst noticed this XRP’s offering is deliberately designed be large, fixed and non-reissueable. This structure supports a multi-trillion dollar liquidity pool and enables the network to handle large settlement flows.
XRP Market Cap Crashes Nearly 10%
More recently, XRP is facing additional downward pressureas CMC data shows that the cryptocurrency’s market cap has crashed by almost 10%. At the time of writing, XRP’s market capitalization has fallen to approximately $79.25 billion, following a massive price drop over the past 24 hours.
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The decline corresponds to the broader sell-off in the major cryptocurrencies marketas sentiment has become increasingly bearish. XRP has been among the hardest hit, with its price falling to $1.3, marking its lowest level since 2024. The cryptocurrency shows no clear signs of a recovery despite a recent surge in daily trading volume, which increased by more than 148%.
Featured image from Freepik, chart from Tradingview.com