XRP Price Has the Potential to Reach a Two-Digit Figure if XRP Recaptures the Percentage of Bitcoin Market Cap It Held in 2018

Amid a broader market pullback from the Federal Reserve's hawkish stance on the economy, XRP has suffered a huge blow.

XRP price has the potential to reach a two-digit figure if XRP recaptures the percentage of Bitcoin market cap it held in 2018 before the SEC lawsuit.

Amid a broader market pullback from the Federal Reserve’s hawkish stance on the economy, XRP has suffered a huge blow. The altcoin’s price collapsed from a top of $2.72 on Dec. 17 to a floor of $1.96 on Dec. 20, marking a massive 28% decline within four days.

XRP recovered from the $1.96 low as a result of the robust support at this level, a region that previously acted as resistance. Despite the rebound, XRP price is still 25% down from the $2.72 peak, currently hovering around $2.16 at press time.

At this price, XRP’s market cap stands at $132 billion, according to data from TradingView. It bears mentioning that XRP hit an all-time high market valuation of $165 billion on Dec. 3, when its price soared to the seven-year high of $2.9. Before now, the peak valuation stood at $128.5 billion in January 2018.

However, despite this cycle’s valuation being greater than the 2017/2018 valuation, it captures a much lower chunk of Bitcoin’s market cap. For context, in January 2018, when XRP’s market cap hit $128.5 billion, Bitcoin had a valuation of $260.05 billion. This indicates that XRP captured 49.4% of BTC’s market cap at the time.

This ratio continued to decline considerably as XRP price faced turbulence over the years, while Bitcoin thrived. Further, the SEC lawsuit, which began in December 2020, exacerbated XRP’s underperformance, resulting in the asset missing out on the 2020/2021 bull run.

Amid this sustained underperformance, the ratio of XRP’s market cap to Bitcoin’s valuation has plummeted considerably. For instance, at the start of this year, on Jan. 1, XRP only had 3.9% of Bitcoin’s market cap. Notably, at the time, XRP’s valuation stood at $33 billion, while Bitcoin had a market cap of $838 billion.

Interestingly, following the November rally, XRP’s market cap has skyrocketed to new heights. Now, with a market valuation of $132 billion, XRP captures about 6.8% of Bitcoin’s market cap, which now sits at $1.93 trillion. This is still way below the 49.4% ratio from 2018.

Nonetheless, market experts believe XRP price will only surge further from here, especially after the ongoing correction ends. If XRP reclaimed the 49.4% Bitcoin market cap ratio, the implications would be massive for prices.

For context, 49.4% of the current Bitcoin valuation is $953 billion. Should XRP reach a market cap of $953 billion, its price would skyrocket to $16.6, considering the circulating supply of 57.25 billion tokens.

Such a price would mark a 621% increase from the current XRP price. Interestingly, market expert EGRAG had previously projected this price target for XRP. In October, EGRAG leveraged a Linear Regression principle to set three XRP price targets, including $16.

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