Experts reveal why investors are skeptical XRP can reach $1,000

One community critic outlined factors that have led to pessimism about XRP’s potential move to $1,000, but remained confident about XRP’s prospects.

It is worth noting that XRP has been hovering below $1 since December 2021. Although it surged to $0.93 last July, it failed to regain $1 as buyers ran out of steam. Frustratingly, XRP recently fell below the $0.50 area, further reducing its chances of reaching $1.

Despite these challenges, some analysts are predicting a significant rebound for XRP, with predictions ranging from $5 to an ambitious $200. On a more daring note, some commentators have predicted that the price of XRP will reach $1,000, a view that has been met with widespread skepticism in the community.

An XRP community account called “Common Sense Crypto” recently responded to this skepticism. He outlined why many doubt XRP can reach the $1,000 milestone. His comments discussed several factors that influenced investor pessimism.

Factors behind suspicion
First, there is widespread disbelief that XRP has significant growth potential and skepticism about whether banks will adopt it. The belief that banks and financial institutions will adopt XRP on a large scale remains a matter of debate.

While Ripple has made progress in forging partnerships with some institutions, widespread adoption is far from guaranteed. Competing technologies and regulatory challenges could hinder XRP’s expected growth trajectory. Some critics have suggested that financial institutions might develop their own systems, rendering XRP unnecessary.

Historical market trends and previous market cycles are also seen as obstacles that cannot be changed. Additionally, the supply of XRP remains a concern for many investors. The total supply of 100 billion XRP means that the XRP market requires a large infusion of capital to maintain the market valuation that accompanies a price of $1,000.

Additionally, Ripple’s control over this portion of supply raises questions about potential price manipulation, further fueling skepticism. Some community members claim that Ripple suppresses XRP prices through regular sales. However, Ripple’s CTO David Schwartz denied these claims.

Amid doubts over whether XRP can reach $1,000, “Common Sense Crypto” remains optimistic. He believes that true believers see the potential for XRP to reach four figures and beyond, viewing skepticism as pure FUD. The choice, he said, is whether to believe these narratives or the so-called facts about XRP’s potential.

One community member added that the skepticism stems from the multiple challenges that need to be addressed to make such a high valuation realistic. He stressed that market capitalization alone should not be relied upon as an indicator, noting the speculative nature of the current market.

Currently, XRP is trading at $0.49, having lost 1.62% in the past 24 hours. To reach $1,000 from this level, XRP would need to grow by a massive 203,732%.

This would give XRP a market capitalization of approximately $55 trillion, surpassing the value of all other assets in the world. Many people believe that such a large amount of money being injected into the market is extremely unlikely.

Disclaimer: This content is for informational purposes only and should not be considered financial advice. The opinions expressed in this article may reflect the personal opinions of the author and do not necessarily reflect the opinions of The Crypto Basic. Readers are encouraged to perform adequate research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.