Bird supports XRP target price of US$100 -589, refuting the market cap theory

Commentator and developer Bird defends XRP long-term price forecast, refutes the question of market cap

Commentator and developer Bird recently challenged the widespread skepticism about XRP long-term price forecasts in the market. He believes that critics have misunderstood the significance of market value as an indicator in the digital asset market, thus denying the possibility of XRP reaching a higher price.

Market cap "misunderstanding" in XRP forecasts

Bird points out that it is misleading to deny XRP's price target of hundreds of dollars simply because of the implied market cap size. He explained that the market value is calculated by multiplying the latest transaction price by the total circulating supply, but this does not represent the total capital invested in the asset.

He believes that prices are determined by marginal transactions, and even a small amount of new purchases may have a significant impact on the overall valuation of the asset. Bird emphasized that this feature is often misunderstood, especially in the rapidly volatile cryptocurrency market.

"People often refuse to accept that XRP may reach $100 or even $589 in the future because they feel that there is a limit to the market value. However, market value only represents the price multiplied by the amount of circulating supply and does not reflect the actual amount of capital flowing in."

Bird urges investors to shift their attention away from current market cap numbers and instead focus on the long-term growth potential of XRP Ledger, especially in the context of the continued expansion of tokenized applications and institutional adoption.

The potential value of XRP ledgers and network growth

Bird predicts that over the next five, ten or twenty years, the XRP ledger could support trillions of dollars in tokenized real-world assets, including government bonds, stocks, real estate, commodities, stablecoins and money market funds. He pointed out that future growth could also come from RLUSD and other assets issued directly on the XRP ledger.

With the integration of decentralized exchanges, automated market makers, institutional lending, AI-driven trading, widespread institutional adoption, and interconnected global liquidity pools, Bird believes XRP has the potential to evolve into a fundamental asset for a large financial ecosystem, rather than limited to speculative use.

If these developments are realized, Bird expects the XRP token to provide extensive infrastructure support to institutions, businesses, developers, liquidity providers and investors around the world.

--Small Dictionary: XRP Ledger (XRPL) is a decentralized blockchain network that supports fast, low-cost transactions and carries a variety of digital assets. It was originally designed to promote cross-border payments and was seen as a core pillar of the XRP ecosystem.

Supply dynamics and institutional liquidity needs

Bird emphasized that the long-term value of XRP will depend on supply and demand relationships. Given the cap on its supply, he believes that increased activity by retail investors, financial institutions, corporations, ETFs, banks and liquidity providers may intensify demand for available tokens.

He pointed out that not all XRPs will remain liquid, and some tokens will be locked in liquidity pools, used as collateral, stored in ETFs, held by long-term investors, or lost permanently. As available supply dwindles and demand rises, Bird believes prices will naturally rise.

"Liquidity at the institutional level is crucial. Higher XRP prices mean that each token can complete a larger value settlement, making the network more efficient when handling large financial operations."

According to Bird, institutions need reliable and deep liquidity to facilitate large transactions. In his view, a higher XRP valuation will help the network carry large-scale transaction volume, thereby improving the efficiency of global settlement.

Ambitious goals depend on widespread adoption

Bird acknowledges that reaching XRP at $100 or even $589 requires extraordinary milestones. He said a valuation of $100 is likely to depend on the following conditions: widespread adoption of XRP ledgers by institutions; trillions of dollars in tokenized asset markets; growth in assets on the chain (such as RLUSD); a favorable regulatory environment; and millions of holders worldwide.

He added that the $589 goal is even more ambitious and requires XRP ledgers to become one of the world's leading financial networks, supporting tens of trillions of dollars in tokenized assets and having hundreds of millions of users.

Despite the ambition of these forecasts, Bird pointed out that many breakthroughs in the industry in the past were initially dismissed as unrealistic. He encourages people to view XRP in terms of what the XRP ledger may become in the future, rather than just staying at its current market state.