Q: What would it take for Ripple, currently $1.08 to reach $10 USD? And is if more likely or less likely than INXT ($14.45) to hit $200 USD?
Many traders missed a lesson on market cap.
Lets revisit. "Dollar value means nothing." I will repeat that. "DOLLAR VALUE MEANS NOTHING." Many new traders and even some that have been around nearing a year still think the lower a coins dollar value is, the more room it has to grow. They think a coin worth .01 cent automatically has a greater possibilty to double, triple, 10x or 100x simply because its only a penny. They believe that the distance between 1 cent and 10 cents is closer than $10 and $100. And while that is true in the case of dollar value, remember what I said. "Dollar value means.... nothing." Right.
So, what are we as traders supposed to focus on if not dollar value?
🎉Marketcap🎉
The marketcap determines the true possibility of growth. Lets keep using Ripple, since its shilled to every new crypto trader due to its low dollar value.
The entire crypto marketwas $500 Billion yesterday. Of that amount, Almost 190 billion was Bitcoin. There has never been a moment in cryptocurrency history when another coin had greater marketcap dominance. Meaning, Bitcoin has always been in 1st. Right now, Ethereum has 2nd highest market cap and at $43 billion, Ripple is in third. Market cap and dollar value do not move on a perfect 1:1 ratio, but the relation is close enough. 📓Note: Because marketcap doubles doesnt mean price will double. BUT... if price doubles, the marketcap HAS to increase significantly.
For Ripple to 10x, we are looking at the market cap having to 7-10x. That would put Ripple's MCAP above $430 billion. In the current market, that is $50 billion less than the ENTIRE CRYPTO MARKET CAP. It simply CAN NOT happen. It would need to more than double Bitcoin'ss MCAP just to get to $10. Let alone, what would be needed for Ripple to hit $100. (which many dream of).
🔑 But when you look at INXT a move from $9 million marketcap to $90 million is much easier. Even INXT with a MCAP of $200-500 million is much more likely than Ripple hitting half a trillion MCAP, when the entire market is currently is $480 Billion. INXT would hit a price of around $150-$250 USD much easier than Ripple hitting $10 because there is room for growth in the marketcap. And thats because the marketcap is what matters. Not the dollar value.
Can Ripple reach $100? Yes. But the entire crypto market cap would have to be in the double digit trillions. And until then, this is just a dream rooted in a lack of understanding the market. And this applies to all coins. Tron reaching $1 is far tougher than ADex hitting $10. Tron at it's peak was #5 at .42 cents with an MCAP of $16 Billion. You simply run out of room.
📩 Of course, if Bitcoin goes to $40,000, the dollar value of everything increases without the market cap doing so. But for those new to this concept, lets leave that to another conversation.
TL/DR: Stop looking for CHEAP coins and start looking for low marketcap coins.
I wonder when it will be time to discuss coin supply 🙂✌❤🌟
