XRP Price Prediction: XRP Could Hit $1000 if It Captures 10% of the Global Derivatives Market

Assessments suggest the price of XRP could reach a four-digit figure if XRP can capture 10% of the global derivatives market, but there's a catch.

Recent assessments indicate that the price of XRP could potentially reach four digits if the altcoin manages to capture 10% of the global derivatives market. However, this scenario comes with a caveat.

Over the years, XRP has been the subject of several bullish predictions, largely due to the untapped potential of the altcoin and its native blockchain, known as the XRP Ledger (XRPL).

XRP's Undervalued Status

It's important to note that XRP initially experienced a remarkable ascent, with its price surging by over 60,000% from 2017 to January 2018, reaching an all-time high of $3.31. During this period, XRP's market dominance exceeded 30%, primarily driven by its growing utility in cross-border payments.

However, XRP's market presence has since diminished, and its utility in payments has been largely neglected. The SEC's lawsuit against Ripple, which spanned from December 2020 to August 2022, also played a role in XRP's setbacks.

Currently, with XRP trading at over 80% below its six-year-old ATH, most analysts agree that it is one of the most oversold crypto tokens.

Some commentaries suggest that XRP's fair market value could range from $4,813 to $13,386. Others anticipate that XRP's price could reach even higher levels if the financial world fully recognizes its potential and adopts it wholeheartedly for its valuable utility in payments.

XRP's Price with 10% of Global Derivatives Market

One particular domain where some analysts envision XRP excelling is the derivatives market. For those unfamiliar, the derivatives market is a financial market where contracts (derivatives) derive their value from an underlying asset, such as stocks, bonds, commodities, currencies, or even cryptocurrencies.

Several estimations have valued the global derivatives market at a notional amount of $1 quadrillion, making it one of the largest financial markets in the world by far. If the XRP Ledger were to host approximately 10% of this value, it would translate to a figure of $100 trillion, which is significantly larger than the entire crypto market.

Considering that XRP is the native token of the XRPL, if the network were to capture $100 trillion in notional market value, and given XRP's total supply of 100 billion tokens, this would propel its price to $1,000.

It's crucial to note that while this estimation projects an ambitious XRP price, several of its assumptions are questionable. For instance, some financial commentators have disputed the $1 quadrillion notional value of the derivatives market, suggesting it is a gross overstatement.

Furthermore, the estimation assumes that XRP would capture the entirety of the XRPL's notional value, which is highly unlikely. The XRPL also hosts several other assets despite having XRP as its gas token. Therefore, any notional value attained by the network would be shared among these assets, although XRP could still secure a substantial portion of it.

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