XRP Market Cap Is a Myth, Says Analyst Making the Case for XRP to Reach $33 – The Crypto Basic

A notable market analyst has explained how XRP is capable of reaching ambitious two-digit prices, debunking what he calls the market cap myth.

Notably, XRP has been the subject of audacious price predictions, especially following its recent rally from November 2024 to January 2025. The asset surged past key psychological levels, reclaiming $1, $2, and $3. 

Although it recently dropped below $3 this month, March 2025, amid a broader market capitulation, bullish forecasts remain strong, with some analysts predicting prices as high as $27 and $33.  

While skeptics argue that these targets are unrealistic due to market cap constraints, market analyst Zach Rector took to X to challenge this sentiment. 

He recently addressed what he calls the “XRP market cap myth” by using real-world data to explain how XRP’s market cap can grow massively with relatively small inflows of capital.  

The XRP Market Cap Multiplier  

In his analysis, Rector explained that market cap growth for XRP—or any digital asset—are not as straightforward. According to him, XRP exhibits a unique market cap multiplier effect, where a small amount of capital inflow can lead to a massively large increase in valuation.  

For instance, he analyzed a four-hour period where XRP experienced $80 million in net inflows. During this window, XRP’s market cap expanded by $17 billion, reflecting a 212x multiplier. 

The reverse effect also occurred when the SEC filed an appeal brief on Jan. 15, 2025. Following the filing, XRP’s price dropped from $3.20 to below $3, causing a $15 billion reduction in market cap. However, this drop resulted from only $55 million in outflows, indicating another multiplier of 279x.  

Rector noted that, in previous weeks, he observed even higher multipliers, sometimes exceeding 589x and, in some cases, reaching into the thousands. This suggests that XRP is highly responsive to capital inflows, making it easier to move the asset’s market cap up or down.  

How ETFs Could Drive XRP to $33  

Taking this multiplier effect into consideration, Rector noted how ETF inflows could help push XRP price to ambitious targets. He stressed that JP Morgan recently estimated $4 billion to $8 billion in inflows for XRP ETFs within their first year of trading, according to a recent report from The Crypto Basic.

It bears mentioning that the push for XRP ETFs has gained steam. Cboe recently filed applications with the SEC on behalf of asset managers such as Bitwise, 21Shares, and WisdomTree. Additionally, Grayscale has applied to convert its XRP Trust into an ETF.  

Notably, based on JP Morgan’s conservative assumption of an $8 billion inflow once these ETFs go live, applying the 212x market cap multiplier would result in a $1.7 trillion market cap increase. Adding this to XRP’s existing market cap of around $200 billion would bring it to about $1.9 trillion.  

Now, with a circulating supply of 58 billion XRP, this level of market cap expansion would push XRP’s price to $33. Contrary to the belief that trillions of dollars are necessary to push XRP’s market cap to the trillion-dollar range, Rector argued that the multiplier effect makes it achievable with much less capital.