Crypto pundit CharuSan has again commented on his prediction that XRP could rally above $300. He addressed concerns that the token’s potential market cap makes it impossible to reach this target, highlighting why the market cap metric doesn’t affect XRP.
Pundit Points To Trillion-Dollar Market That Could Push XRP Above $300
In an X post, CharuSan alluded to the $27 trillion sitting idle in global Nostro/Vostro accounts, the massive volumes in FX markets, major banks, DTCC clearing, and institutional corporations as the reason why XRP could rally above $300. He noted that, based on this, it is a necessity to prevent the system from locking up for a bridge asset carrying this volume to reach a value of $10 trillion.
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The pundit noted that XRP is an institutional bridge asset and a liquidity tool specifically engineered to settle large cross-border value transfers without slippage. He also mentioned that market cap is a metric for stocks, not for institutional bridge assets or liquidity tools like XRP. Charusan further explained how the market is getting it wrong by focusing on the market cap metric.
He said that traditional financiers make a mistake when they say an $8 to $10 trillion market cap is too big. CharuSan noted that market cap doesn’t mean all circulating coins will be cashed out at that current price. Instead, it is simply the unit price of the last executed transaction multiplied by the supply.
CharuSan had earlier predicted that XRP would rally to $300 as it gains adoption by banks for settling cross-border transactions. He explained that the token needs to have a high price to avoid bottlenecks or massive slippage when banks are using it for settlements. The analyst also mentioned that the CLARITY Act will boost banks’ adoption of XRP.
Why XRP Could Be Undervalued
On-chain analytics platform Santiment has explained why XRP could soon see a rebound. In an X post, they noted that the average XRP trader that has been active in the past 30 days is down around 47%, with many selling at the bottom. Santiment stated that, historically, the market value-to-realized value ratio (MVRV) will always average out to 0%, making the current period an “extreme” zone for XRP.
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Santiment noted that XRP’s 30-day MVRV has fallen to its lowest level since December 2020, suggesting that fear and frustration among traders have reached rare extremes. This has historically preceded strong rebounds, indicating that a rebound for XRP may be on the horizon. The platform added that this deeply negative MVRV zone creates conditions where even small positive catalysts can trigger strong recoveries.
At the time of writing, the XRP price is trading at around $1.32, down in the last 24 hours, according to data from CoinMarketCap.
Featured image from Adobe Stock, chart from Tradingview.com
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