XRP has been one of the most trending cryptocurrencies since the last quarter of 2024. The momentum continued after the coin surged by over 40% since the beginning of this year, impressively reaching a yearly high of $3.41 on January 17, before retracing toward its present price range of $3.1.
The strong performance, coupled with expected development in the political and regulatory landscape in the United States has triggered bullish sentiment with several analysts predicting bold outcomes for the coin. One such prediction is the forecast of XRP reaching $1,000 in 2025. However, an analyst shared his opinion on why the coin will not achieve this feat, at least in the short term.
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Why XRP Won’t Reach $1K Anytime Soon
SyedBahoo, a crypto analyst on Binance Square, highlighted why he thinks the Ripple-backed coin is not likely to attain the coveted $1,000 mark. He based his prediction on XRP’s market cap against Bitcoin’s (BTC) market cap, noting how large the coin’s valuation would have to be for it to trade at $1,000.
According to his analysis, XRP’s price at $3 reflects a market cap of $178 billion, while Bitcoin’s market cap rests at $1.98 trillion. SyedBahoo went on to divide BTC’s market cap by XRP’s market cap, arriving at approximately 11.2. Next, he multiplied XRP’s price of $3 by the result to get $33.37, stressing that this is the highest XRP can trade if it achieves Bitcoin’s market cap.
Moreover, he added that for XRP to reach $1,000, it would need a capitalization of $55 trillion which is far more than the entire crypto market valuation (currently at $3.57 trillion), suggesting an impossibility, at least for now.
His post, which was seen by over 130,000 people, ignited a wave of reaction from the XRP community on Binance Square, most of whom expressed their steadfastness in the coin, stressing that they would not mind holding until it achieves the impossible.
XRP’s recent price movement is catalyzed by several key factors including increasing whale activities. According to a recent post by Ali Martinez (@ali_charts) on X, more than 100 million XRP was bought in the last 48 hours. Massive movements of cryptos such as this are usually interpreted as bullish signs since the coins are moved to external wallets with the possible intention of long-term holding.
XRP whale accumulation | Source: Ali_Charts/X
Trump’s Administration to Favor XRP?
Meanwhile, Donald Trump, the president-elect of the United States, is set to take office today, January 20. His tenure has been perceived as a breath of fresh air for the crypto industry especially coming out of the stringent policies enforced by the outgoing administration.
Trump, a vocal supporter of cryptocurrencies, even launched his official meme coin, TRUMP on the eve of his inauguration. The coin went on to skyrocket in value, currently positioning as the second-largest meme coin by market cap after Dogecoin (DOGE).
The XRP community expects that his tenure might see the end of the Ripple vs. SEC lawsuit, especially since Gary Gensler would be replaced by a pro-crypto figure, Paul Atkins, ultimately boosting the price of XRP.
The XRP community will continue to watch how things unfold after Trump returns to the White House, and how the “golden age of innovation” will impact the future trajectory of the coin and its path to $1,000. At the time of writing, XRP traded at $3.14, representing a 0.58% decline in the last 24 hours.
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