With the anticipated launch of Ripple’s stablecoin RLUSD, the XRP community is coming up with wild speculations. One such speculation was a community member noting that the XRP price would hit $1M if an XRP drop is worth $1. This conjecture was built on XRP developer Vet’s sarcastic comment that 1 RLUSD is worth $1.
The smallest unit of XRP is called a drop, and 1 XRP contains 1 million drops.
Can $1 Drop Propel XRP Price to $1 Million?
XRP has six digits of precision; the smallest unit is one-millionth of an XRP and is called a “drop.” XRP community speculated that the price of the asset could hit $1 million if a drop ever equals 1 RLUSD.
Vet, a developer and XRP enthusiast, posted that there were speculations that 1 RLUSD could be worth $1.
There are speculations about 1 RLUSD being worth $1 – Big if true.
— Vet 🏴☠️ (@Vet_X0) September 20, 2024
Of course, this was a joke because RLUSD will be a stablecoin on the XRP Ledger, pegged 1:1 to the US Dollar.
Not getting the joke, the XRPArmy went ahead to speculate how XRP could surge to $1 million if a drop of XRP became $1.
1 xrp has 1 million drops. Once XRP rises in price the drops will come into play in a big way. So if 1 RLUSD=$1 dollar, and 1 RLUSD is paired to 1 XRP drop in the future, then 1 XRP would = $1 million dollars. David was asked this but kinda dodged the question. It’s 100% possible
— CryptoTank (@Tank2033js) September 21, 2024
If XRP Drop Hits $1, Here’s how much Ripple Market Cap Would Be
For XRP to reach $1 million per token, its market capitalization would need to be astronomically high, far exceeding the total value of all global assets combined. This is not feasible under current market conditions. Perhaps a ‘Global Reset’ could do it.
Nevertheless, let’s do the math:
The total supply of XRP is 100 billion. At $1 million per coin, the entire Ripple market cap would swell to $100 quadrillion—that’s 1, with 17 zeros in front of it.
For comparison, the global broad money supply of the four largest central banks stood at $87.57 trillion as of July 2024.
Including other central banks brought this number up to $129 trillion. There is simply not enough money in the entire world.
XRP Price Analysis Hints 17% Short-Term Gains
XRP price is forming a bullish ascending triangle pattern in the 6-hour timeframe. This is a continuation pattern, indicating a potential breakout to the upside if the price can breach the flat resistance near $0.59. The breakout would propel the Ripple price to $0.69, the next significant resistance, 17% higher than the current price.
The candlesticks within the triangle pattern show decreasing volatility, typical of consolidation before a breakout. The lack of long upper shadows suggests reduced selling pressure near resistance, which supports the possibility of an upward breakout.
If XRP bulls lose momentum and the price breaks lower from the triangle, it could signal market weakness, prompting the asset to find lower support near $0.5.
Conclusion
XRP price to $1 million is an audacious speculation, but the current global financial money supply makes it impossible. However, if the XRP supply were to be drastically cut, this price tag would be a reality. Meanwhile, the asset seeks 17% gains in the short term to retest $0.70.
Frequently Asked Questions (FAQs)
If 1 drop of XRP were worth 1 RLUSD, then 1 XRP would be valued at $1 million. However, achieving this would require a market capitalization of $100 quadrillion, far exceeding the total value of all global assets combined.
RLUSD is expected to be a stablecoin on the XRP Ledger, pegged 1:1 to the US Dollar. The speculation that 1 RLUSD could be worth $1 was intended as a joke. It is not a realistic scenario for the XRP price to reach $1 million.
Under current market conditions, it is impossible for XRP to reach $1 million due to the limitations of global financial resources. Even with a drastic reduction in the supply of XRP, the value per token would not likely approach this level.
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Evans Karanja
Evans Karanja is a crypto analyst and journalist with a deep focus on blockchain technology, cryptocurrency, and the video gaming industry. His extensive experience includes collaborating with various startups to deliver insightful and high-quality analyses that resonate with their target audiences. As an avid crypto trader and investor, Evans is passionate about the transformative potential of blockchain across diverse sectors. Outside of his professional pursuits, he enjoys playing video games and exploring scenic waterfalls.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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