XRP Price Prediction: Analyst Says XRP Must Hit $100 for Banks to Use It

Everyone in crypto watches market cap. It is the number that appears on every chart, every app and every news headline. But according to financial analyst Jake Claver, market cap might actually be one of the worst ways to measure whether a digital asset is genuinely strong or just temporarily popular.

Claver has spent the last year developing what he calls the Liquidity Index, a six-part equation designed to measure the true utility and stability of a digital asset. And when you run XRP through it, the results are interesting.

Why Market Cap Tells You Almost Nothing

Market cap is simply price multiplied by supply. It tells you what the market thinks something is worth right now. It does not tell you whether that asset can actually handle the weight of global financial infrastructure. Claver’s Liquidity Index measures six things instead: market depth, liquidity continuity, slippage cost, available supply, settlement speed, and accessibility. Together, these paint a very different picture of which assets are built to last.

The Swimming Pool Analogy That Changes Everything

To explain market depth, Claver uses a brilliantly simple analogy. Imagine XRP’s market as a swimming pool. The water is the money available to absorb large trades. If JP Morgan wants to move $100 million using XRP and the pool is shallow, that trade is like a 200-pound adult cannonballing into a kiddie pool. Water goes everywhere. Price crashes. The trade becomes expensive and unpredictable.

But if the pool is the size of a lake, the same cannonball barely makes a ripple. The trade goes through cleanly and price stays stable. The question then becomes: how do you make the pool deeper?

Here is where it gets interesting. XRP has a fixed supply. You cannot print more tokens the way the Federal Reserve prints dollars. So the only way to deepen the liquidity pool is to make each individual token worth more.

“If XRP is worth $1 each and you need to move $100 million, you need 100 million tokens sitting ready to absorb that trade,” Claver explained. “But if XRP is worth $100 each, you only need a million tokens to absorb the same trade. Same dollars moving, way less stress on the pool. That is not speculation. That is arithmetic.”

The Slippage Problem Banks Cannot Ignore

Right now, if a major bank tried to push $100 million through XRP, they would lose around 10% to slippage alone. That is $10 million simply evaporating in the process of executing a trade. In traditional stock markets, moving the same $100 million costs less than half of 1%. Crypto currently loses that comparison by a wide margin.

To close that gap, Claver says the value sitting on XRP’s order books needs to grow by somewhere between 20 and 100 times its current level. Since the token supply cannot grow, the price has to do all of that work.

Supply Is Shrinking While Demand Grows

At the same time that institutional demand is rising, the available supply of XRP is quietly shrinking. ETFs from firms like Grayscale and Franklin Templeton lock tokens in cold storage, removing them from circulation entirely. Banks holding XRP as operational inventory are not leaving those tokens on exchanges. DeFi protocols and lending pools are absorbing more supply every month.

The result is a classic supply and demand squeeze. When demand rises and supply falls simultaneously, prices do not drift upward gradually. They gap up sharply, because at some point there simply are not enough sellers and buyers have to pay whatever the next willing seller will accept.

Speed and Access: The Final Two Pieces

XRP settles transactions in 3 to 5 seconds. Bitcoin takes up to an hour. Ethereum takes between 5 and 15 minutes. Claver compares it to a bank teller who can serve one customer every 30 minutes versus one who serves a customer every 5 seconds. The fast teller with the same amount of money can serve exponentially more customers. A market maker with $10 million working on XRP could theoretically support billions in daily volume. The same market maker on Bitcoin might support a few hundred million.

The final piece is regulatory access. Until the GENIUS Act passed in July 2025, US banks were legally unable to touch crypto at scale. That door is now open for stablecoins. If the CLARITY Act passes, US banks could hold XRP directly on their balance sheets as a recognised asset. When that happens, Claver says the pool gets significantly deeper very quickly.