- Analyst says XRP forecasts ignore key economic laws governing value.
- Moonchaser clarifies XRP’s market cap follows normal financial principles.
- Expert dismisses claims that XRP is a limitless, capless asset.
According to Moonchaser, a long-term crypto bull, many XRP price predictions in the crypto community ignore basic economic principles. She explained that some enthusiasts believe XRP can reach extraordinary values because it is a “currency” and therefore not limited by market capitalization.
However, this assumption overlooks the fundamental market forces that determine value across all assets.
Moonchaser noted that every currency, including the US dollar, has a measurable worth defined by its supply and demand. The dollar’s total monetary base, represented through indicators like M1 and M2, shows the amount of money circulating in the economy.
Its value changes daily due to global market activity and liquidity, just as XRP’s price reacts to similar forces in digital markets.
She added that market capitalization, which is the product of price and circulating supply, applies equally to digital assets, fiat currencies, and commodities. Therefore, the idea that XRP has no market cap because it functions as a currency is incorrect. Any traded asset with a price and supply has a measurable market value influenced by trading activity.
Also Read: Pundit: ‘Institutions are Fighting Over XRP, Not Enough to Go Round’
Analyst Explains Why XRP’s Market Value Follows Economic Logic
Moonchaser explained that XRP’s price movements follow the same principles as any other traded asset. Its value depends on market participation, supply, and demand, which together create its price discovery process.
XRP’s supply is finite, and its price fluctuates; its market capitalization can be calculated like any other currency or commodity.
She further stated that the belief that XRP is a “capless” asset misrepresents how open markets operate. Every currency, whether traditional or digital, gains value through market interaction and liquidity. XRP’s valuation, therefore, remains tied to economic fundamentals, not speculation or unfounded expectations.
Moonchaser’s remarks highlight the need for realistic analysis in cryptocurrency discussions. She stressed that digital assets are governed by the same economic laws that shape global financial systems, making market awareness essential for accurate valuation.
Also Read: XRP Price Weakens as Technical Charts Signal Further Downside
