By Michael Scott
The XRP leads the charge as crypto assets stage a bullish start in 2025. The impressive run witnessed since Jan 1 positions XRP on a path to test uncharted territory.
With several factors likely to further the tailwind necessary for XRP to sustain the uptrend movement, this altcoin could seize a portion of the derivatives market.
Amid the growing speculations of the conclusion of the Ripple lawsuit, this altcoin community appears captivated for further gains. Also, the bullish sentiment is fueled further by the likely approval of XRP exchange-traded funds (ETFs), with the community anticipating the product to mirror Bitcoin-based ETFs’ success.
The achievement of the abovementioned factors will trigger the XRP’s parabolic run. The upward movement prompts imagination on how high the XRP could soar if it were to secure a tiny portion of the huge derivatives market.
The global derivatives market is often regarded as having a colossal value in the various financial sectors. Some market analysts have estimated the derivatives’ notional value surpassing $1 quadrillion.
The generous estimates have attracted criticism from some experts who consider the figures as overly exaggerated. Nonetheless, they argue that the market harbors a vast potential where a minimal stake could translate to a transformative outcome for the XRP price.
How High is XRP Price if It Attains 0.1% Derivatives’ Value?
The XRP price elevation could elevate to new heights if it captured 0.1% of the derivatives market speculated to have a $1 quadrillion value. This would translate to a $1 trillion market value for XRP.
With the XRP supply currently capped at 99.98 billion tokens, the $1 trillion market value corresponds to $10 per unit of this altcoin.
If the scenario plays out to a $1 trillion market value for XRP, the Ripple-associated altcoin could print a massive leap from the present trading price of $2.40. For context, achieving a $10 price implies over 460% return for the XRP holders.
While this figure appears astronomical, most market pundits believe the $10 milestone is a conservative outlook for this token in 2025.
The Web3Alert founder, in an earlier prediction captured on X post, provided a path for XRP to rally 1,500% to the $10 price.
While the prediction was issued last March, the post-election gains realized by XRP since Donald Trump’s triumph in the US elections rule out the match to $10 from being a far-fetched dream.
Reflecting on the recent pro-crypto developments coupled with the strategic initiatives by Ripple Labs, XRP is positioned on the cusp of the $10 target range Nick predicted last year.
Heightened Ripple Activity in Derivatives Space
The XRP’s participation in the derivatives space appears to have accelerated following the emergence of Ripple ties with Bitstamp. Notably, Bitstamp crypto exchange is angling towards unveiling a derivatives platform, with some disclosures hinting Ripple could have an active input in the initiative.
Moreover, Ripple had in August 2023, disclosed its membership in the International Swaps and Derivatives Association (ISDA). Joining this entity suggests the Brad Garglinghouse-led crypto firm developed an interest in the lucrative derivatives market.
A more convincing development hinting at Ripple’s interest in the derivatives space is its $25M investment within the US-based exchange. The multi-million allocation to the derivatives platform portrays the commitment to explore the sector further.
Challenges to XRP Ambitious Targets
Critics challenge the notional value for the derivatives market cited as $1 quadrillion, arguing the figure represents the entire value of contracts and not their actual economic exposure. They add that the gross market value better reflects the true economic impact that by mid-last year had a $17.1 trillion estimate.
The discrepancy in the estimated value necessitates a cautious handling of the projected XRP potential market.
The possibility of XRP hitting $10 when this altcoin attains just 0.1% of the entire derivatives market is speculative. Critics believe the actual figures could ultimately vary.
Despite the discrepancy, the Ripple initiatives and partnerships strategically position XRP to realize a modest portion of the derivatives spaces. This realization will boost the XRP value.
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