- XRP is on the verge of reaching a $100 billion market capitalization for the first time since 2018, as its price continues to rise and its circulating supply increases.
- This milestone, though not altering its ranking among cryptocurrencies, holds significant psychological importance and could attract more investors to the digital asset.
XRP, one of the most well-known cryptocurrencies, is nearing a significant achievement that could reshape its position in the market. The digital asset is on the cusp of reaching a $100 billion market capitalization, a milestone it hasn’t touched since 2018. As the price continues to rise, investors are keen to see how this surge could impact the broader cryptocurrency landscape.
A Look Back: The Last Time XRP Touched $100 Billion
In 2018, XRP made headlines when its price soared to $3.13 per token, pushing its market capitalization to an impressive $120.76 billion. Fast forward six years, and the cryptocurrency has yet to surpass that all-time high, but it’s currently edging closer to the $100 billion mark. At its current price of $1.66 per token, XRP is approaching a level not seen since May 2021, when it reached a similar price. However, at that time, the market cap only peaked at $70.65 billion due to a smaller supply of XRP in circulation.
The Tokenomics Behind XRP’s Growth
A key factor in XRP’s rising market cap is its tokenomics. XRP’s total supply is nearly 100 billion tokens, but a large percentage of these were previously locked in escrow accounts controlled by Ripple, the company behind the cryptocurrency. Over the years, a portion of these tokens has been gradually unlocked, leading to an increase in the total supply in circulation. Currently, there are 57.05 billion XRP tokens in circulation, contributing to the current $25 billion increase in market cap compared to 2021 levels.
The Psychological Importance of the $100 Billion Mark
For XRP, reaching the $100 billion market cap is more than just a numerical achievement. It represents a key psychological milestone, one that solidifies its standing in the crypto world. While the price rise won’t change XRP’s position in the rankings of the largest cryptocurrencies, hitting $100 billion will give the token a level of recognition that could attract more investors—especially those who may not yet have fully embraced cryptocurrencies. Moreover, this milestone would theoretically place XRP among the top 170 largest companies in the world, further validating its status as a formidable digital asset.
What’s Next for XRP?
XRP only needs a 2.65% increase in value to hit the $100 billion market cap threshold, which many analysts believe is within reach. As the digital asset approaches this milestone, it is poised to garner more attention from both seasoned crypto investors and newcomers alike. If XRP can continue its upward trajectory, it could signal a new era for the cryptocurrency, one where it competes more vigorously with other market leaders like Bitcoin and Ethereum.
About the Author
