Top Financial Advisor Explains the Math Using Forex Market Data
The post Top Financial Advisor Explains the Math Using Forex Market Data appeared on BitcoinEthereumNews.com.
A top financial advisor outlines how XRP could attain $125 per token, using hypothetical calculations based on the Forex market volume. XRP continues to trade around the $0.55 region with negative trajectories across weekly, monthly, and even yearly timeframes. Essentially, XRP’s price has been unimpressive. Meanwhile, pundits in the crypto community continue to foresee a future where the asset trades beyond even three-digit values. Whiplash, a widely followed financial advisor in the crypto community, is the latest to argue XRP’s potential to attain values beyond $100. He expressed this sentiment in a recent post on X. Mathematics of XRP Attaining $125 In the post, he speculatively outlined the mathematics behind how a $125 price point for XRP could be attainable. Specifically, this eye-catching figure stems from a calculation based on the assumption that XRP could one day handle a significant portion of the daily trading volume in the global foreign exchange (Forex) market. First, Whiplash noted that XRP has a maximum supply of 100 billion tokens, with around 60 billion in circulation. He pointed out that the Forex market saw trading volumes reach $7.5 trillion per day in April 2022. Whiplash speculates that if XRP were to facilitate this level of transaction volume, the value of each token could theoretically reach $125. He arrived at this value by dividing the FX market volume by XRP’s circulating supply of 60 billion. Essentially, this mathematics suggests that for XRP to have sufficient liquidity to process a $7.5 trillion market volume, the token must be worth at least $125. For context, XRP currently sells for $0.5656. Reaching the speculative price of $125 implies an astonishing 22,000% increase. How XRP Holders Could be “Earning” $100K However, the entirety of XRP’s supply is not under the control of a single entity. This weakens the assumption…
Filed under: News - @ August 17, 2024 7:28 am