Impossible to Overtake Bitcoin? Expert Says XRP’s Market Cap Ceiling Will Block a Rise to $10,000
Impossible to Overtake Bitcoin? Expert Says XRP’s Market Cap Ceiling Will Block a Rise to $10,000
Claims arguing that skepticism over XRP reaching $10,000 due to market capitalization limits contains logical flaws have reignited debate in the cryptocurrency market.
On February 6 (local time), according to crypto-focused media outlet NewsBTC, discussions have resurfaced about whether XRP could rise to $10,000, with strong criticism asserting that market capitalization scale would impede such growth. However, market analyst Crypto_Luke noted on X (formerly Twitter) that market capitalization is a misunderstood metric that fails to properly capture XRP’s liquidity and usefulness as a global payments currency. Crypto_Luke explained that market capitalization is merely the circulating supply multiplied by the last traded price and does not reflect the actual amount of investment required to reach a specific price.
Crypto_Luke cited a failure to account for how XRP operates as the key reason the market-cap logic is flawed. Unlike assets such as Bitcoin (BTC), which are primarily designed as stores of value, XRP was designed for rapid liquidity provisioning and payments across global corridors. He emphasized that XRP can be used multiple times a day and can facilitate massive transaction volumes without requiring additional capital. Accordingly, XRP’s price is determined by the actively traded liquid supply rather than the total dormant supply.
The analyst added that liquidity and price adjustment are central to XRP’s design. Assets that move quickly through payment networks enable the system to meet enormous demand without holding capital on a one-to-one basis against the dollar. As transaction volumes increase, XRP’s price naturally adjusts to reflect its utility rather than being constrained by a fixed market-cap figure. He further explained that XRP’s large fixed supply from inception, without reissuance, was intended to support multi-trillion-dollar liquidity pools and withstand high throughput.
Recent market conditions, however, run counter to this optimism, as heavy downside pressure has taken hold. Amid broad-based sell-offs across the crypto market, XRP’s market capitalization has plunged by nearly 10% over the past 24 hours to around $79.25 billion. XRP has dropped sharply to its lowest level since 2024, and despite daily trading volume surging by more than 148%, clear signs of a rebound remain elusive.
Market participants are divided over whether traditional metrics like market capitalization are appropriate for assessing the potential of payment-focused assets such as XRP. While some share Crypto_Luke’s view that XRP could surpass market-cap constraints if it becomes a core liquidity instrument in global financial infrastructure, skeptics argue that a market capitalization exceeding the global money supply is unrealistic. As the market navigates the current downturn, attention is focused on whether XRP can establish a new utility-centered framework for valuation.
*Disclaimer: This article is for investment reference only and does not assume responsibility for investment losses based on it. The content should be interpreted solely for informational purposes.*
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