Cryptocurrency expert CharuSan has again commented on his prediction that XRP could rise above $300. He addressed concerns that potential market capitalization of the token prevents this goal from being achieved, highlighting why the market capitalization rate does not influence XRP.
The expert points to a trillion-dollar market that could push XRP above $300
In Post XCharuSan alluded to the idle $27 trillion in global Nostro/Vostro accounts, massive volumes in foreign exchange markets, major banks, DTCC settlements and institutional corporations as the reason why XRP Could Rise Above $300. He noted that it is therefore necessary to prevent the system from locking up in the event that bridge assets of this volume reach USD 10 trillion.
The expert noted that XRP is an institutional bridge asset and liquidity tool specifically designed to settle immense amounts cross-border transfers of value no slipping. He also mentioned that market cap is an indicator of equities, not institutional bridge assets or liquidity tools like XRP. Charusan further explained how the market gets it wrong by focusing on the market capitalization metric.
He said established financiers make the mistake of saying that a market capitalization of $8 trillion to $10 trillion is too immense. CharuSan noted that market capitalization does not mean that all coins in circulation will be paid at the current price. Instead, it is simply the unit price of the last completed transaction multiplied by the supply.
CharuSan previously predicted that XRP would rise to $300 once it was adopted by banks to settle cross-border transactions. He explained that the token must have a high price to avoid bottlenecks or huge slippages when banks apply it for settlements. The analyst also mentioned this CLARITY Act will raise bank adoption of XRP.
Why XRP may be undervalued
On-chain analytics platform Santiment explained why XRP may see a rebound soon. In Post Xnoted that the average XRP investor who was dynamic over the last 30 days was down approximately 47%, with many selling at the low. Santiment stated that historically, the ratio of market value to realized value (MVRV) will always average 0%, making the current period an “extreme” zone for XRP.
Santiment noticed this 30 Day MVRV XRP fell to its lowest level since December 2020, suggesting that fear and frustration among traders has rarely reached extremes. This has historically been preceded by a forceful rebound, indicating that an XRP rebound may be on the horizon. The platform added that this deep negative MVRV zone creates conditions where even petite positive catalysts can trigger forceful recoveries.
At the time of writing, XRP is trading around $1.32, down over the past 24 hours, according to data from CoinMarketCap.
Featured image from Adobe Stock, chart from Tradingview.com
