With Ripple reportedly leading efforts to purchase $1 billion worth of XRP, how could XRP price react if the firm bumped the treasury to $10 billion?
For context, Ripple is moving ahead with a major plan to raise at least $1 billion to buy more XRP, according to a recent Bloomberg report.
Ripple Reportedly Leading Efforts to Buy $1B in XRP
Per the report, the company aims to store the funds in a new digital-asset treasury (DAT) as part of efforts to strengthen its position in the crypto market. People familiar with the plan said Ripple will use a special purpose acquisition company (SPAC) to raise the money and will also add some of its own XRP to the fund.
Notably, the final structure of the deal is still being discussed, and details could change before completion. Those close to the talks, who asked to remain anonymous, explained that Ripple has not yet shared an official comment.
However, the move indicates that the company remains focused on expanding its reach despite the broader crypto market facing recent uncertainties on the back of the Oct. 10 flash crash.
Expectedly, the report triggered excitement within the XRP community, who, in usual fashion, presented speculative ideas. Some suggested this $1 billion push might be part of a larger strategy to build a long-term treasury, which could have major implications for XRP’s price over time.
Nonetheless, how this could impact XRP remains unclear. As a result, we asked Google Gemini to analyze a hypothetical scenario where Ripple boosts its fundraising goal from $1 billion to $10 billion. At the time of the assessment, XRP traded around $2.35, with a circulating supply of about 60 billion tokens.
XRP Price if Ripple Bumped the Treasury to $10B
Responding to the query, Gemini explained that if Ripple decided to spend $10 billion buying XRP, it would amount to around 7.1% of the token’s entire market value. It said this level of demand would likely shake up the market and send prices sharply higher.
According to Gemini, such a huge buying effort would quickly eat up available liquidity on exchanges, leaving fewer tokens for sale and forcing the price upward. Beyond the direct buying pressure, Gemini said the move would also create a massive psychological effect.
Specifically, investors would see it as a signal that Ripple has strong confidence in XRP’s long-term value. This sentiment could trigger massive FOMO, drawing in more retail and institutional investors and adding even more buying pressure.
Gemini also noted that how Ripple structures the accumulation would matter. If the company buys gradually, the price could rise steadily over time. But if Ripple purchases in large, rapid bursts, the price could shoot up quickly and then swing wildly as traders rush to react.
In a bullish projection, Gemini estimated that if Ripple pursued a $10 billion accumulation plan, XRP could climb to new all-time highs. It placed the potential price range between $45 and $75 per token. At the upper end of that range, XRP’s market cap would hit about $4.5 trillion, considering the 60 billion tokens.
Gemini explained that this kind of surge wouldn’t just come from buying activity alone. It would also come from what it called a “utility premium.” For context, this refers to the value the market assigns to XRP’s real-world use in areas such as Ripple Payments.
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