Expert Says No ‘Magic Switch’ For XRP Price, Here’s What Can Drive Price Above $2,500

Crypto expert Jake Claver has explained what needs to happen for the XRP price to rally to as high as $2,500. He noted that the projected rally isn’t as easy as some make it out to be, but suggested that it is very much possible despite market cap concerns. 

In an interview, Claver stated that there are macroeconomic global events that need to play out to cause a supply shock that would push the XRP price to $2,500. He declared that the projected rally will boil down to supply and demand economics rather than the market cap, which may be alluded to. 

Based on the current circulating supply of 59.77 billion XRP, a price rally to $2,500 would give the altcoin a market cap of $149.4 trillion. This is 50 times larger than the current crypto market cap and almost double the U.S. GDP. However, Claver believes that the focus is on whatever the supply is on the market for purchase, which will determine how high the XRP price could rise. 

The market expert further noted that this is what drives liquidity and market dynamics, ultimately affecting the XRP price. Claver also remarked that XRP is deflationary and that 5,000 coins are burned daily, which he indicated will make the altcoin more valuable over time. XRPScan data shows that 14.2 million XRP have been burned since the token launched. 

Notably, this prediction marks just one of many ultra-bullish predictions for the XRP price even as the altcoin currently trades in the single digits. Crypto analyst Xena recently declared that XRP will definitely reach $10,000. She claimed that naysayers will be shocked just the same way people who were surprised at Bitcoin’s exponential growth over the years.  

In another part of the interview, Claver claimed that the XRP price rally to $2,500 could happen by the end of the year. The expert alluded to the reverse carry trade as one of the catalysts that would have to transpire for the projected rally to happen. However, he didn’t explain how this reverse carry trade will work with respect to what currencies will be borrowed or invested in. 

However, he asserted that the catalysts are at the “doorstep” and that they are inevitable. He further predicted that the XRP price will stay that high as it continues to rally, as there will be enough liquidity for counterparties to settle transactions using XRP. The expert suggested that most SWIFT and stock market transactions could eventually be settled on the XRP Ledger using XRP. 

At the time of writing, the XRP price is trading at around $2.85, down almost 2% in the last 24 hours, according to data from CoinMarketCap.