The XRP price could reach an ambitious double-digit value if XRP’s market cap rises to the level of electric vehicle (EV) maker Tesla.
The market hasn’t been particularly favorable for XRP lately. While some top assets, including Bitcoin (BTC), have posted new all-time highs in the current cycle, XRP is still trading below the peak it reached six years ago.
The underperformance of XRP
As a reminder, XRP failed to surpass this high of $3.31 during the 2021 bull run. The altcoin only rose to a high of $1.96 but failed to capitalize on the broader market rally in Q4 2021. The rest of the market posted new all-time highs, but XRP failed to follow suit.
Now that the bull market is progressing, some market participants believe that XRP could miss another bull rally. The asset has failed to even reclaim the $1 price, let alone retest the $1.96 high of the previous bull rally. Notably, XRP’s inability to surpass its previous highs has kept its market cap at lower levels.
After its launch, XRP fought for the second place of the largest crypto assets for a while. At one point, this battle was stubborn with Ethereum (ETH). However, as of press time, Ethereum has completely secured this spot with a market cap of $300 billion. XRP’s market cap, on the other hand, is only $28.6 billion, making it the seventh largest cryptocurrency.
XRP price if it matches Tesla’s market cap
Nevertheless, some experts suggest that XRP could be on the verge of a comeback uptrend. Some of these commentators try to compare the upcoming revival of XRP with Tesla’s market growth. In May, market analyst EGRAG claims that selling XRP at the current price level is equivalent to selling Tesla shares when they were trading at $2.50.
A interesting comparison from last August also showed that despite its underperformance, XRP still outperformed Tesla over a 10-year period. Notably, $100 invested in XRP in August 2013 yielded $9,222 in August 2023. In comparison, Tesla returned $2,189 over the same period.
Nevertheless, Tesla’s overall growth was nothing short of extraordinary. Tesla Stock currently Trade for $200.64, up 0.88% over the last 24 hours. At this price, the market cap currently stands at $640.97 billion, significantly higher than XRP’s $28.6 billion.
We recently calculated what the price of XRP would be if it reached Tesla’s market cap. Specifically, with a market cap of $640.97 billion, the XRP price would rise to $11.44, assuming the current circulating supply of $55.99 billion remains relatively constant. This would represent a 2,145% increase from the current price of $0.5094.
Disclaimer: This content is for informational purposes only and should not be considered financial advice. The views expressed in this article may include the personal opinions of the author and do not reflect the opinion of The Crypto Basic. Readers are advised to conduct thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial loss.
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