Could XRP Reach $100 Trillion? An Analyst Explains How

A market analyst is challenging the popular belief that XRP needs massive daily payment volumes to reach high valuations. Instead, the focus should shift to whether major financial firms begin using the token as locked collateral. The argument suggests that if institutions hold XRP to back large trades, the supply sitting in idle inventory could drive prices toward $100 or even $1,000 per token.

Traditional arguments often compare XRP to the SWIFT network, suggesting it needs a similar valuation to handle trillions in daily flows. However, because XRP settles almost instantly, it can be reused constantly. This means high payment volume does not necessarily require a massive circulating supply. The analyst claims that the real value comes from tokens that are taken out of circulation and pledged to secure positions, similar to how gold is treated.

While Ripple has taken steps toward this goal, such as the acquisition of Ripple Prime, XRP is not yet listed as acceptable collateral by major rating agencies. CEO Brad Garlinghouse has mentioned this as a future target, but it remains a work in progress. For now, the market remains cautious.

Despite recent updates like the launch of Ripple Mint and efforts to expand the reach of the RLUSD stablecoin, XRP price action has been sluggish. The token is currently trading well below its previous record highs, and investors are watching to see if Ripple can turn these institutional ambitions into a reality.