Grok, the AI chatbot from xAI, estimates XRP price if Ripple handles a massive $30 trillion volume in daily transactions.

Majeed, a notable figure within the Saudi Arabian XRP community, triggered this assessment with a recent inquiry. He asked about the potential value of XRP

Grok, the AI chatbot from xAI, has estimated the price of XRP if a massive volume of $30 trillion is handled daily by Ripple.

This was in response to a question by Majeed, a prominent figure in the Saudi Arabian XRP community, who was curious about the potential value of XRP.

He asked what the price of XRP could be if 1 billion XRP were released monthly by Ripple from its escrow while also facilitating a staggering $30 trillion in daily transactions.

For perspective, typically, 1 billion XRP are released by Ripple from escrow every month but later 800 million tokens are re-locked.

Interestingly, in its response, Grok arrived at a price of $30,000 for XRP to support an ambitious framework of $30 trillion in daily transactions.

To provide context, the AI chatbot explained the interplay between transaction volume, money supply, and circulation velocity.

Grok converted the daily transaction volume into a monthly figure for consistency with the escrow release schedule. With $30 trillion processed daily and assuming 30 days per month, the AI calculated a monthly transaction volume of $30 trillion multiplied by 30, equaling $900 trillion.

Then, to evaluate the XRP price, Grok used the quantity theory of money, expressed as transaction volume equaling money supply multiplied by velocity. Here, the transaction volume stands at $900 trillion per month.

Further, the money supply represents the number of XRP available multiplied by its price per unit, while velocity represents the frequency of each XRP’s use within the period. Rearranging this, Grok derived the price per XRP as the transaction volume divided by the product of the XRP supply and velocity.

Importantly, the AI chatbot interpreted the 1 billion XRP released monthly as the operative supply for its estimation. However, it recognized that there was ambiguity regarding whether this figure constitutes the total supply or an increment to an existing pool.

For context, the total supply of XRP is 100 billion, with 57.94 billion in circulation at press time. Nonetheless, sticking to Majeed’s emphasis on the monthly release, Grok proceeded with 1 billion XRP as the supply base.

Now, given XRP’s rapid settlement capabilities, Grok assumed that each XRP could be used once daily, accumulating to 30 uses per month. As a result, the calculation became $900 trillion divided by 1 billion XRP multiplied by 30, yielding $900 trillion divided by 30 billion, or $30,000 per XRP.

To test this, Grok discussed alternative velocities. If each XRP were used twice daily, the monthly velocity would rise to 60, adjusting the price to $900 trillion divided by 60 billion, equaling $15,000 per XRP.

A more aggressive assumption of five uses per day, or 150 per month, further reduced the price to $900 trillion divided by 150 billion, resulting in $6,000 per XRP.

Grok also considered the impact of a larger supply. Using a circulating supply of 50 billion XRP with a velocity of 30, the price dropped to $900 trillion divided by 1,500 billion (50 billion times 30), equaling $600 per XRP. Doubling the velocity to 60 with this supply adjusted the price to $300 per XRP.

This suggests that the price of XRP could range from $300 to $30,000 depending on the velocity and money supply. However, it is important to note that this remains speculative. Notably, a $30 trillion daily transaction volume is nearly impossible at current market conditions.