A recent buzz on the X (formerly Twitter) social media platform has sparked speculation that the XRP price could hit $1,000. However, a crypto pundit has slammed these overly inflated and seemingly unrealistic predictions, pointing to market capitalization and the coin’s current fundamentals as clear obstacles to such a price surge.
Analyst Criticizes $1,000 XRP Price Forecast
In an X (formerly Twitter) post on September 13, crypto exchange, Uphold triggered a flurry of discussions within the crypto community by posting, “XRP just hit $1,000. What’s your next move?” The tweet instantly caught the attention of various XRP investors and enthusiasts, with many sharing hopeful plans of what they would do if the cryptocurrency suddenly reached that price mark.
Related Reading: Shiba Inu Team Members Reveals The Best Way To Burn SHIB And Reduce Supply
While XRP investors reveled in the potentially life-changing impact of such a price increase, a crypto analyst, TruthLabs slammed Uphold for its lofty predictions. The analyst branded the crypto exchange as an XRP promoter, expressing skepticism over the feasibility of its $1,000 XRP price claim.
He disclosed that for XRP to reach $1,000 from its current price of $0.5, its market capitalization would need to experience an extraordinary growth to $100 trillion. Currently, XRP’s market capitalization stands at $32.9 billion, making a $100 trillion target seed like an implausible figure.
According to TruthLabs, the global market capitalization of all cryptocurrencies is also below $100 trillion, sitting at $2.04 trillion presently. This suggests that for XRP to hit $1,000, it would have to achieve a market capitalization that surpasses the combined value of all the cryptocurrencies in the market, including Bitcoin (BTC), the world’s largest cryptocurrency by market cap.
TruthLabs has indicated that expecting XRP to reach $1,000 was unrealistic, likening Uphold’s ambitious predictions to hype tactics used by penny stock promoters, who often exaggerate the potential value of low-cost stocks to attract unsuspecting investors. The analyst further cautioned that Upholds’ XRP price claims were irresponsible, which may lead some investors to make financial decisions based on false hopes.
XRP Supporters Fire Back
While TruthLabs criticized Uphold for its unrealistic XRP price target, many XRP supporters hit back at the analyst for using the market capitalization metric as a basis for his argument. “Truth is anyone who brings market cap to the conversation isn’t worth having a conversation with,” an XRP supporter stated.
Related Reading: Bitcoin Bull Pennant Still In Motion With $158,000 Price Target, Here’s When
Another crypto community member identified as ‘CryptoTank’ criticized TruthLabs’ understanding of how XRP’s value should be assessed. He argues that the analyst is incorrectly using market capitalization as a foundation for evaluating XRP’s potential.
Instead, the crypto member suggests that XRP’s price should be determined by its utility, which he describes as the total value or volume of transactions on the XRP Ledger (XRPL) divided by the circulating supply.
Featured image created with Dall.E, chart from Tradingview.com