The Long-Term Valuation of XRP Sparks Ongoing Debate in the Crypto Community
As noted by Versan Aljarrah, co-founder of Black Swan Capitalist, grasping the potential for XRP to achieve extremely high price levels—potentially up to $10,000 per coin—necessitates a departure from traditional thinking.
In a comprehensive analysis, he posits that XRP’s architecture as a global liquidity mechanism renders high valuations not as speculative dreams, but as mathematical results linked to its utility and global demand.
XRP’s Purpose: Global Liquidity Rather Than Speculation
Aljarrah points out that many assess XRP as if it were a stock or commodity. However, in his opinion, the architects of the XRPL did not design XRP to function like conventional assets.
He emphasizes that XRP is meant to serve as a universal settlement tool that can facilitate the transfer of hundreds of trillions of dollars across borders, currencies, and tokenized markets.
Understanding Divisibility: Scaling XRP to $10,000
According to Aljarrah, one of XRP’s significant yet frequently misunderstood attributes is its divisibility. Each XRP can be divided into 1,000,000 drops, meaning that even if XRP were priced at $10,000, a single drop would retain a value around one cent.
This functionality allows XRP to maintain usability at various price points—regardless of whether it trades at $0.50, $500, or $50,000—ensuring seamless transactions for both micro and macro payments.
The Financial Mathematics Behind a High Valuation
Aljarrah asserts that XRP has a total supply of 100 billion tokens, but the effective supply available for global liquidity is lower due to long-term holdings and institutional reserves.
He underlines the scale of global markets:
- $7 trillion settled daily in the foreign exchange markets
- $600 trillion in global derivatives
- $150 trillion in annual cross-border payments
XRP as an Instrument for Global Monetary Transactions
As XRP achieves broader adoption, Aljarrah suggests that its value will be dictated by actual usage rather than speculation, influenced by factors like transaction speed and liquidity.
With XRP already being integrated into banking systems and international financial dialogues, he believes it has the potential to function as a genuine global currency instead of merely a trading asset.
