Impact of XRP Market Cap Multiplier on Price Fluctuations

XRP's Future Value Dynamics

• Total Supply vs. Available Supply: XRP has a total supply of 100 billion tokens, but its price is more influenced by the actual available supply for trading, which is significantly lower. Financial expert Jake Claver highlights that only about 2 billion XRP is currently accessible on exchanges, with retail holders possibly holding an additional 1.2 to 2 billion XRP.

• Impact of Retail Selling: Claver suggests that if XRP's price reaches between $10 and $100, an additional billion tokens could be made available on exchanges as retail investors may choose to sell at these higher valuations.

Market Cap Multiplier Concept

• Understanding Market Cap: The traditional view of XRP's market cap assumes value is spread across the entire 100 billion supply. However, with only a small fraction available for trading, new capital inflows can lead to a much larger effective market cap than standard models predict.

• 50x Effect: Claver introduces the concept of a "50x effect," where limited supply amplifies the impact of demand, allowing XRP to achieve market capitalizations that seem unattainable under normal circumstances.

Liquidity Changes at Higher Price Levels

• Selling Pressure at Increased Prices: As XRP's price rises to levels like $10, $20, or $100, more retail holders are likely to sell, which would increase the number of tokens available on exchanges.

• Gradual Supply Release: This gradual increase in supply could eventually reduce the strength of the multiplier effect, but until significant price movements occur, XRP's valuation may rise more sharply than its nominal supply would suggest.

Disclaimer

• Investment Caution: The content is intended for informational purposes only and should not be considered financial advice. Readers are encouraged to conduct their own research before making investment decisions, as Times Tabloid is not responsible for any financial losses incurred.