- XRP’s price can rise sharply with low liquidity and limited actual capital inflow.
- Market cap reflects valuation, not real investment, causing common pricing confusion.
- Small surge in demand could drive XRP toward $100 without trillions entering.
XRP, the digital asset built for fast and affordable cross-border payments, remains at the center of heated price debates. A frequently cited claim is that XRP would need over $5 trillion in liquidity to hit $100 per coin. This idea discourages many investors who assume such a figure is far-fetched.
However, angel investor and crypto educator Armando Pantoja offers a compelling counterargument. He breaks down the misconception between market capitalization and actual money inflow, helping investors see a more realistic path toward high price levels. According to Pantoja, understanding the mechanics of market valuation is key to recognizing XRP’s potential.
Market Capitalization Is Often Misunderstood
One of the biggest misunderstandings in crypto is confusing market cap with cash inflow. Many assume that for XRP to reach a $100 valuation, trillions must pour into the asset. Pantoja clarifies this myth, noting that market capitalization is simply price multiplied by total supply. It does not represent the total money invested in an asset.
Hence, a relatively small volume of buy orders in a low-liquidity environment can significantly raise the price. Consequently, this can make the market cap appear much larger than the actual investment suggests. If demand spikes and supply stays limited, the price can rise fast without billions in real capital.
Real Estate Analogy Simplifies the Concept
To illustrate this dynamic, Pantoja draws a parallel with real estate. Suppose a neighborhood has 100 houses priced at $500,000 each. The total perceived value is $50 million. If one buyer offers $1 million for a house and the seller agrees, the perceived value of all homes doubles despite only one house being sold at that price.
This real-world example shows how one transaction can reset expectations across a market. Crypto behaves similarly, especially in emerging markets like XRP, where liquidity is still thin compared to stocks or commodities.
What This Means for XRP’s Future
Significantly, this means XRP does not need a massive influx of capital to hit triple digits. Even $20–30 billion entering the market under the right conditions could trigger a steep price rally.
