Here is the price of XRP if XRP only captures 1% of the estimated $1 quadrillion derivatives market

XRP price could skyrocket into triple digits if XRP captures a small portion of derivatives market amid community speculation.

The global derivatives market is one of the giants of the financial scene, with industry leaders insisting its valuation is in the trillions. Current estimates suggest its notional value could exceed $1 quadrillion.

XRP price if it captures 1% of the derivatives market

However, some experts question these projections, saying they may overestimate the true size of the market. Nonetheless, even capturing a small fraction of this colossal market could be extremely beneficial for assets like XRP.

If XRP got just 1% of the derivatives market, using a valuation of $1 quadrillion, that would translate to $10 trillion. Notably, with the total supply of XRP capped at 100 billion tokens, a market cap of $10 trillion would mean a price of $100 per token.

Interestingly, some market commentators have claimed that XRP is capable of reaching the $100 mark. Armando Pantoja disputed last month, a $100 price for XRP is possible. In September, crypto analyst Levi said the $100 mark is “certain”.

Currently, XRP is trading at around $2.30, meaning its price would need to rise by over 4,247% to reach this hypothetical $100 level. Achieving such growth over a seven-year period would require an annual growth rate of around 600%.

XRP at the forefront

Speculation surrounding XRP’s entry into the derivatives market has emerged amid a potential partnership between Ripple and Bitstamp. Bitstamp, a leading cryptocurrency exchange, is planning to launch a derivatives exchange, and Ripple may also get involved in the project.

Additionally, American trading platform Robinhood is set to acquire Bitstamp for $200 million. This development could strengthen Bitstamp’s capabilities and market reach, allowing it to continue its derivatives platform.

While some reports suggest the platform could run on the XRP Ledger (XRPL), a Bitstamp representative told The Crypto Basic a few months ago that they had not confirmed these claims, leaving room for speculation.

In addition to the potential of Bitstamp, Ripple has shown interest in the derivatives market through various initiatives. In August 2024, Ripple joined the International Swaps and Derivatives Association (ISDA), as it intended to enter the derivatives business.

Additionally, three months ago, Ripple directed a $25 million funding round for Bitnomial, a derivatives exchange that launched a futures trading platform in the United States. These developments have fueled speculation that XRP could capture a portion of the derivatives market.

Possible disadvantages

As previously noted, some market observers believe the quadrillion dollar estimate for the derivatives market is exaggerated. They argue that notional value represents the total underlying value of all derivative contracts but does not accurately reflect actual economic exposure or risk.

As a reminder, the gross market value of these contracts, which represents their replacement cost, is much lower. By mid-2024, it stood at around $17.1 trillion.