Analyst "XRP will overtake Bitcoin (BTC)"

▲ XRP, Bitcoin (BTC)

Observations have emerged that a market capitalization reversal could occur in the virtual asset market. An analysis suggests that XRP could surpass Bitcoin (BTC) if large-scale capital flows into its network.

According to cryptocurrency specialized media Benzinga on September 26 (local time), crypto analyst Rob Cunningham stated via X (formerly Twitter) that XRP could leap to a multi-trillion dollar asset if capital amounting to $10 trillion moves to the XRP Ledger. However, he attached the condition that the capital must directly purchase and hold the tokens, not merely pass through for transactions. Cunningham added, “Life goes by in a flash,” and “especially during revolutionary times.”

The ratio of market capitalization increase compared to past capital inflows was also presented as evidence. Cunningham cited a multiplier effect of over 600 times, where a past net capital inflow of $66 million triggered a market capitalization increase of approximately $45 billion. Currently, the Bitcoin market size is about 17 times larger than XRP, but the landscape could shift depending on the actual token conversion rate of new capital and the level of selling liquidity supply during price increases.

This analysis aligns with the remarks of Ripple's honorary Chief Technology Officer, David Schwartz. Schwartz raised the possibility of XRP surpassing Bitcoin's market capitalization, highlighting the network's speed and scalability as strengths. He explained, “The world where that happens is not one where Bitcoin shrinks, but one where the entire digital asset market grows much, much larger.” Virtual asset management firm 21Shares also presented regulatory clarity following the end of the lawsuit, seven spot ETFs with $1.3 billion in inflows, an annual network throughput of $500 billion, and a fixed supply of 100 billion tokens as reasons for potential growth.

On the other hand, there are considerable counterarguments that network expansion may not directly lead to token price increases. This is because financial institutions, even if they use the network for settlements, might only hold tokens for a short period or bypass the tokens themselves by utilizing stablecoins and tokenized assets. Whether capital merely passes through the network or actually leads to long-term token holding demand is identified as the key to growth.

[Key Summary of Article]

-Rob Cunningham analyzed that XRP could surpass Bitcoin if $10 trillion in capital moves to the XRP Ledger to purchase and hold tokens.

-The 600x multiplier effect, which led to a $45 billion increase in market cap from a $66 million inflow in the past, and remarks by Ripple's former CTO supported the bullish sentiment.

-However, since institutions may use simple payment channels or stablecoins instead of holding tokens, creating actual holding demand is considered a prerequisite.

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