Here’s what XRP would cost if it regained its share of Bitcoin’s market cap before the SEC lawsuit

The price of XRP has the potential to reach a double-digit number if XRP regains the percentage of Bitcoin’s market cap that it held in 2018 before the SEC lawsuit.

Amid a broader market pullback from the Fed’s hawkish stance position On the economic front, XRP has taken a huge hit. The altcoin’s price collapsed from a high of $2.72 on December 17 to a low of $1.96 on December 20, representing a massive 28% drop in the space of four days.

XRP has recovered from the low of $1.96 as a result of Strong support at this level, the region That was previously It worked as resistance. Despite the recovery, Ripple price It is still down 25% from its peak of $2.72, and is currently hovering around $2.16 at press time.

XRP price is performing poorly while Bitcoin is booming

At this price, XRP’s market cap is $132 billion, according to TradingView data. It is worth noting that XRP reached an all-time high market cap of $165 billion on December 3, when its price rose to a seven-year high of $2.9. Before now, the peak valuation was $128.5 billion in January 2018.

However, although this cycle’s valuation is larger than that of 2017/2018, it captures a much smaller portion of Bitcoin’s market capitalization. For context, in January 2018, when the market cap of XRP was $128.5 billion, Bitcoin was worth $260.05 billion. This indicates that XRP accounted for 49.4% of BTC market capitalization at that time.

This percentage Keep going down Largely as the price of XRP has faced turmoil over the years, while Bitcoin has thrived. Furthermore, the SEC’s lawsuit, which began in December 2020, exacerbated XRP’s underperformance, causing the asset to miss out on the 2020/2021 bull market.

This sustainable environment Poor performancethe ratio of XRP’s market cap to Bitcoin’s valuation has dropped significantly. For example, at the beginning of this year, on January 1, XRP had only 3.9% of the market cap of Bitcoin. It is worth noting that at the time, the value of XRP was $33 billion, while the market cap of Bitcoin was $838 billion.

What if XRP regains BTC’s market cap ratio?

Interestingly, after the November rally, XRP’s market capitalization rose to new heights. Now, with a market cap of $132 billion, XRP holds about 6.8% of Bitcoin’s market cap, which now stands at $1.93 trillion. This is still well below the 49.4% recorded in 2018.

However, market experts believe that the price of XRP will rise further from here, especially after the ongoing correction ends. If XRP regains Bitcoin’s 49.4% market cap share, the implications for prices will be massive.

For context, 49.4% of Bitcoin’s current valuation is $953 billion. He should XRP If the market cap reaches $953 billion, its price will rise to $16.6, taking into account the circulating supply of 57.25 billion tokens.

This price would represent a 621% increase over the current XRP price. Interestingly, market expert EGRAG had previously predicted this target price for XRP. In October, EGRAG Borrowing Linear regression principle to identify three XRP price targets, including $16.