Here’s One XRP Worth if There’s a 5% Capital Rotation from Gold to XRP

With gold recently seeing new ATHs, how high would XRP price go if the market witnessed a 5% capital rotation from gold to XRP?

While the broader crypto market has faced bearish pressure, leading to price struggles for Bitcoin (BTC) and altcoins like XRP, gold has been an excellent performer. Notably, the precious metal has been soaring to new all-time highs since last week, with the latest peak coming up this Monday

Gold Hitting New Highs

With this impressive performance, gold recently became the first asset to claim a $30 trillion market cap. At press time, gold’s price per ounce has corrected slightly below $4,200, leaving it with a market cap of $28.8 trillion. Despite this, the asset has outperformed gold and the rest of the crypto market over the past few days

For context, with gold having a market cap of $28.8 trillion, 5% of this figure translates to $1.44 trillion. Interestingly, this alone is miles larger than XRP’s current market cap of $145.7 billion

If the 5% allocation from gold enters the XRP market, XRP’s valuation will increase by a massive $1.44 trillion. Such a boost would push XRP’s market cap to $1.586 trillion, possibly making it the second-largest crypto asset in the world if Ethereum (ETH) and BNB do not see a comparable increase in size.

Considering XRP’s circulating supply of around 60 billion tokens, the $1.586 trillion valuation would push the price of XRP to $26.4. Such a price would represent a 943% increase from XRP’s current value of $2.43. Essentially, this confirms that just a 5% capital allocation from gold to XRP would boost the XRP price by 943% to $26.4.

While such a capital allocation may appear impractical, some analysts believe the $26 price for XRP is not out of reach. For instance, market watcher EGRAG has persistently suggested that XRP could rally to $26. Specifically, last October, EGRAG set XRP price targets of $9.3, $16, and $26, citing his standard deviation model.