The debate over whether the XRP price could reach $10,000 has reignited in the crypto market. Recently, a prominent crypto analyst has challenged the common argument that market capitalization could limit XRP’s growth. According to this analyst, this claim is fundamentally flawed and overlooks important aspects of XRP’s liquidity and utility as a global settlement currency.

Critics often argue that XRP would never hit $10,000 because such a price would push its market capitalization beyond the global money supply. However, market analyst Crypto_Luke has addressed this misconception, emphasizing that market cap does not inherently constrain the price of XRP. He states that market cap is simply the last traded price multiplied by the circulating supply of the cryptocurrency. This metric merely captures a moment in trading activity, not how much capital is needed to achieve a particular price level.

Crypto_Luke points out that the common criticism fails to recognize how XRP operates differently from traditional assets designed primarily for value storage, like Bitcoin. XRP is engineered for rapid liquidity and swift settlements across global corridors, allowing it to be utilized multiple times within a single day. This means that XRP’s price is influenced more by its “actively traded float” than by the total supply that remains idle.

In his detailed analysis, Crypto_Luke highlights the relationship between liquidity and price adjustments in XRP’s design. He explains that assets which facilitate quick settlements enable the blockchain network to meet demand without requiring equivalent dollar-for-dollar backing. As transaction volumes for XRP rise, its price adjusts naturally, reflecting the asset's utility rather than adhering to a fixed market cap.

The analyst also notes that XRP’s supply was intentionally structured to be large, fixed, and non-reissuable. This design supports a multi-trillion-dollar liquidity pool, positioning the network to handle high-volume settlements effectively.

Adding to the current narrative, XRP has faced additional downward pressure recently. Data from CoinMarketCap shows that the cryptocurrency’s market capitalization has plummeted by nearly 10%. As of now, XRP’s market cap stands at approximately $79.25 billion, following a significant decline in its price over the past 24 hours.

This downturn aligns with a broader market sell-off affecting major cryptocurrencies, as bearish sentiment has taken hold. XRP has been one of the worst hit, with its price dropping toward $1.3, marking its lowest levels since 2024. Despite a recent surge in daily trading volume—up by more than 148%—the cryptocurrency shows no clear signs of a rebound.

In summary, while the debate around XRP’s potential price continues, it is crucial to consider the unique characteristics that differentiate it from other cryptocurrencies. The market cap argument, when analyzed more deeply, may not be as limiting as some critics suggest. As XRP continues to navigate the complexities of the crypto landscape, understanding its liquidity dynamics could shed light on its price trajectory in the future.