Rob Cunningham, the host of KUWL.show, has argued that Ripple’s venture into the stablecoin market, which is expected to reach $2.8 trillion, could make XRP a $12 asset.
Yesterday, crypto payment firm Ripple disclosed its intention to launch a USD-based stablecoin on the XRP Ledger (XRPL). Ripple emphasized that the stablecoin market is worth over $150 billion as of present. However, it cited projections that the market could expand to $2.8 trillion by 2028.
The $2.8 trillion projection has captured Ripple’s attention, prompting the firm to declare its intent to enter the market and launch its USD stablecoin on the XRPL later this year.
Ripple’s declaration sparked bullish commentaries from the crypto community, especially as the proposed stablecoin is coming to XRPL. Pundits examine the potential value of XRP with such pivotal utility coming to its native blockchain.
Among the leading commentators was Cunningham, founder of KWUL Research. Cunningham fixated his XRP price forecast on the cited $2.8 trillion by 2028.
The industry pundit estimated that the current stablecoin market may expand nearly 20-fold to hit the project $2.8 trillion in four years. On this basis, he speculated that XRP may grow by the same margin in four years.
Specifically, Cunningham projected XRP to grow 20 times from about $0.6 in four years to a market value of $12 based on its incoming utility in the stablecoin landscape. His statement suggested XRP could be worth more by 2028, factoring in other utility services.
… and projected to SOAR 20x in size by 2028 …
Wouldn’t this imply that 20 x $0.60 = $12/XRP based solely on StableCoin utility in 4 years?
A #XRP facilitated U.S. #StableCoin offers the global architecture, proven operational excellence and is supported by the greatest… https://t.co/jpQkQaGfpB pic.twitter.com/YvEplrJrYw
— Rob Cunningham | KUWL.show (@KuwlShow) April 4, 2024
Moreover, Cunningham backed his outlook with Ripple’s dominant position in the global crypto payments arena, describing it as the 800-pound gorilla.
Crypto Author Disagrees
Meanwhile, Panos Mekras, the author of “Understanding the Crypto Economy,” challenged Cunningham’s projection of $12 based on the anticipated market size of stablecoins by 2028. He argued that Cunningham’s approach to deriving this price is flawed.
In particular, Mekras pointed out that the projected $2.8 trillion market size encompasses all stablecoins, not just Ripple’s.
Additionally, Mekras stressed that whatever amount Ripple issues in stablecoins has no direct correlation with XRP itself. He emphasized that the funds associated with Ripple’s stablecoin initiative do not necessarily flow into XRP.
