XRP price has the potential to skyrocket to a three-digit figure if it captures a small portion of the derivatives market, as per community speculations. The global derivatives market is massive, with industry experts estimating its notional value to be over $1 quadrillion. Despite some skepticism regarding these projections, even securing a small fraction of this market could greatly benefit assets like XRP.
If XRP were to capture just 1% of the derivatives market, based on the $1 quadrillion valuation, this would equate to $10 trillion. With XRP’s total supply limited to 100 billion tokens, a $10 trillion market cap would result in a price of $100 per token. Some market analysts have expressed belief that XRP could indeed reach the $100 mark, with some confidently asserting this milestone as a certainty.
Currently trading at around $2.30, XRP would need to increase by over 4,247% to reach the hypothetical $100 level. Achieving such growth over a seven-year timeframe would require an annual growth rate of approximately 600%. Speculations surrounding XRP’s potential entry into the derivatives market have surfaced amid talks of a possible partnership between Ripple and Bitstamp, a leading cryptocurrency exchange.
Bitstamp is reportedly gearing up to launch a derivatives exchange, with Ripple potentially getting involved in the project. There are also rumors of U.S. trading platform Robinhood acquiring Bitstamp for $200 million, which could further enhance Bitstamp’s capabilities and market reach, potentially enabling it to pursue its derivatives platform. While reports suggest that the platform might operate on the XRP Ledger (XRPL), Bitstamp has not confirmed these claims, leaving room for speculation.
In addition to Bitstamp’s potential venture into derivatives, Ripple has shown interest in the derivatives market through various initiatives. Ripple joined the International Swaps and Derivatives Association (ISDA) in August 2024, signaling its intention to enter this sector. The company also led a $25 million funding round for Bitnomial, a derivatives exchange that recently launched a futures trading platform in the U.S. These developments have further fueled speculation that XRP could capture a portion of the derivatives market.
Despite the excitement surrounding XRP’s potential in the derivatives market, some market observers believe that the $1 quadrillion estimate for the derivatives market could be inflated. They argue that while the notional value represents the total underlying value of all derivative contracts, it may not accurately reflect actual economic exposure or risk. The gross market value of these contracts, which represents their replacement cost, is substantially lower, standing at about $17.1 trillion as of mid-2024.
