We recently explored how high XRP price could go if its 24-hour trading volume surged by more than 15x to hit the $100 billion mark.
Currently, XRP boasts a 24-hour volume of about $6.65 billion, placing it seventh among the largest assets by trading volume. At this volume, XRP’s price sits at $2.98, as it has continued to struggle around the $3 psychological mark.
Despite its strong market standing, many traders still argue that XRP trades far below its real value. One of the major talking points has been its potential to command greater adoption, leading to higher trading volumes. However, how much of an impact could this have?
To explore how far the price might climb in a very bullish market, we asked Grok, an AI model, to estimate what would happen if XRP’s trading volume exploded to, say, $100 billion in a single day.
Grok Provides a Mathematical Relationship
In its response, Grok presented the current picture. At $2.98, XRP has a volume-to-market cap ratio of about 3.75%. For context, this shows how much of its total capitalization changes hands daily. If volume jumped to $100 billion, the ratio would increase 15x, indicating more demand, heightened speculation, or rapid adoption.
According to Grok, price changes in crypto rarely follow a straight line. Specifically, volume plays an important role, but sentiment, liquidity, and supply-demand forces often have an even bigger impact.
Looking at past data, Grok explained that a 10% rise in trading activity might lead to a 2-5% price increase during bullish periods. To account for this non-linear behavior, Grok used a model that combines elasticity with a sentiment multiplier.
Notably, the model works in three parts. First, it considered XRP’s current price of $2.98. Next, it multiplied that price by the new-to-old volume ratio raised to a power that reflects elasticity. Finally, it adjusted the figure with a sentiment multiplier to capture bullish enthusiasm.
XRP Price with a $100B 24H Volume
In this case, $100 billion divided by $6.65 billion equals about 15.04. Grok assumed an elasticity of 0.5, meaning price would react in a square-root-like fashion. This produced a multiplier of 3.88. When applied to the current price, it raised XRP value to $11.56.
Meanwhile, to factor in a strongly bullish mood, Grok then applied a sentiment multiplier of 2.5. This then pushed the XRP price prediction to $28.90. Grok said that under such conditions, XRP could reach that level if trading activity consistently hit $100 billion a day.
At $28.90, XRP’s market capitalization would climb to about $1.71 trillion. Grok argued that this figure would not be out of reach, noting that Bitcoin’s market cap once crossed $1.2 trillion. Today, Bitcoin has a market cap of $2.36 trillion. With XRP’s potential use in global payments, a valuation of this size could make sense if institutional adoption accelerated.
Further, Grok also tested how changes in assumptions might change the outcome. If elasticity dropped to 0.3, XRP could trade near $18.10. If elasticity rose to 0.7, the price might shoot as high as $45.80. However, using a sentiment multiplier of 1.5 with the base elasticity of 0.5, the estimate dropped to $17.34.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.