A prominent XRP community figure has shown that XRP’s market cap could increase by $5 billion every day if it captured the $500 million net inflow that the BlackRock IBIT ETF recorded on Feb. 13.
XRP’s performance has not been particularly satisfactory to members of its community, leading to concerns and investor angst. Chad Steingraber, a veteran Game Designer and notable member of the XRP community, recently discussed one of the reasons behind the underperformance.
XRP Products See $500K Inflows in 4 Weeks
Yesterday Steingraber called attention to the funds flowing into XRP-based investment products over the past four weeks, citing reports from CoinShares. Data shows that XRP investment products only recorded $500,000 net inflows from Jan. 19 to Feb. 9, averaging $125,000 daily.
Notably, the latest data reveals that XRP recorded $300,000 net inflows on Feb. 9. In comparison, Bitcoin (BTC) saw inflows amounting to $1.089 billion on Feb. 9 only, surpassing XRP’s cumulative net inflows in months. In addition, on Feb. 3, BTC witnessed $702 million in positive net flows.
The newly-approved spot Bitcoin ETF products have contributed the most to Bitcoin’s substantial netflows. Steingraber emphasized in a post yesterday that one of the main reasons why XRP has continued to lag Bitcoin in the market uptrend is the low inflows recorded by the token.
According to him, for XRP to start witnessing impressive price surges, the market needs to record inflows in the $1 million range, a territory that Bitcoin has persistently surpassed over multiple weeks.
What If XRP Recorded $500M Inflows Daily?
In a subsequent post, Steingraber highlighted the fact that BlackRock’s iShares Bitcoin Trust (IBIT) alone saw approximately $500 million in net inflows on Feb. 13. Notably, data from BitMEX Research confirms that IBIT recorded inflows to the tune of $493 million, its largest daily net flow.
As a comparison, Blackrock alone did a New Money Net Inflow of $500Million yesterday.
If #XRP had the same Net Inflow, using the BoA Multiplier, it would add $5Billion to its market cap in one day.
Now do that EVERYDAY. That’s what’s coming.. https://t.co/duPFbU8d4E
— Chad Steingraber (@ChadSteingraber) February 14, 2024
Steingraber presented a hypothetical scenario where XRP saw this value on a daily basis in an attempt to share insights into how the phenomenon could impact its market cap and price action.
Notably, should XRP capture $500 million in inflows, this would translate to an addition of $5 billion to its market cap based on the BoA multiplier which sets a ratio of 1:10 for daily net inflows. Such an addition would considerably boost the market cap of XRP, which currently sits at $29.9 billion.
If XRP records this magnitude of inflows every day for even a month, its valuation would surge to $179.9 billion. Supposing its circulating supply remains fairly constant, the $179.9 billion market cap would result in an XRP price of $3.3, representing a 500% increase from its current price of $0.5491.
This hypothetical scenario underscores the benefits that could accrue to XRP if it also witnessed an introduction of spot-based ETFs from leading asset managers such as BlackRock.
Several XRP proponents have championed this narrative, questioning why the asset has not seen a spot ETF in the United States despite its legal clarity.
