We asked ChatGPT if Ripple (XRP) can reach $1 billion market cap this cycle

TL:DR;

Ripple’s cross-border token became one of the top performers in the cryptocurrency market on a monthly basis at one point, but can it go even higher? ChatGPT and Perplexity consider the factors necessary for their market cap to skyrocket to $1 trillion.

XRP at $1T?

Remember the price action around XRP shortly after Donald Trump won the 2024 US presidential election. After a slow start, while the rest of the market rallied, Ripple’s native token exploded in the following weeks, especially after current SEC Chairman Gary Gensler announced his upcoming departure from the agency.

At one point, the price of XRP had shot up more than 400% and was close to $3 on a few occasions. While the community was anticipating a rise beyond that level and a new all-time high of over $3.4, the asset retreated and even fell below $2 earlier this week during the correction of the entire market.

Now, however, XRP is hovering around $2.5, with a market cap of just over $140 billion. In order to reach the coveted $1 billion mark of market capitalization, its price would need to reach about $17.5 per token. As of now, it seems like a tall order, but ChatGPT has outlined the potential factors that could lead to such a massive increase.

Perhaps the most important part is the overall market sentiment. As long as the bull market remains intact, XRP has the potential to rise further, perhaps even entering double-digit territory. The other factor highlighted by ChatGPT and Perplexity is adoption levels.

“Ripple has positioned XRP as a bridge currency for cross-border payments. If financial institutions globally adopt Ripple’s solutions, it could drive demand for XRP.

Partnerships with banks and payment providers could increase transaction volume and liquidity.”

Greater use of the native cross-border token, as well as the upcoming stablecoin RLUSD, could also affect the former’s price movements and send it higher, the two chatbots said.

challenges

ChatGPT and Perplexity also outlined some challenges XRP could face on the rise. Competition from other projects, including other more established stablecoins such as USDT and USDC, is among these. The XRPL network also faces different competitors and the price of XRP could be suppressed if it does not dominate the market.

It is necessary to mention the regulatory environment in both categories. Should it change and become more crypto-friendly, as Trump promised, it could positively affect XRP. However, if the landscape remains similar during the Trump administration as it has been under Biden, the asset, as well as many other US-based crypto projects, could be significantly harmed.

ChatGPT also mentioned the increasing supply of XRP tokens and potentially increasing selling pressure, which could halt its price growth.

“Ripple Labs holds a significant portion of XRP, releasing it periodically. This could create selling pressure, limiting price appreciation.”

SPECIAL OFFER (Sponsored) Binance Free $600 (Exclusive to CryptoPotato): Use this link to register a new account and receive an exclusive welcome offer of $600 to Binance (full details).

LIMITED OFFER for CryptoPotato readers on Bybit – Use this link to register and open a FREE $500 position with any currency!