AI-powered
podcast player
Listen to all your favourite podcasts with AI-powered features
4min chapter
Crypto Bull Market Masterclass! Bitcoin, Ethereum, Solana, & XRP Price Predictions with Credible Crypto
Thinking Crypto News & Interviews
Market Cap vs. Token Supply: Analyzing Ethereum and XRP
This chapter delves into the importance of market capitalization compared to token supply in evaluating cryptocurrencies like Ethereum and XRP. It explores how capped token supply affects prices and offers predictions for XRP's future based on the anticipated growth of Ethereum.
00:00
Transcript
Episode notes
Speaker 1
And
Speaker 2
credit does I know some of the skeptics will say, hey,, hey, look at the token supply, right? It's very different. Does that matter? Yeah,
Speaker 1
so token supply doesn't matter. It matters if inflation is uncapped, it matters if inflation is unlimited. At that point, it matters. But as long as supply is capped, regardless of it's a million coins or a billion coins, it doesn't matter. And that's because price will adjust based on that supply, right? So for example, the reason that Ethereum is $2,500 and XRP is 20 cents, despite having market caps that are not different by a hundred times is because the supply of Ethereum is a lot less. And so the value per token is a lot higher, but at the end of the day, the market cap is what you should be focusing on rather than supply. And so Ethereum sits here at a market cap of 300 million while XRP sits at a market of 32 million. There's a 10X difference in market, 10X difference in market cap, but there's an over like hundreds of difference in, in, in a token price because the supply is so different. But what you should be focusing on is a market cap. And what you take away from here is that Ethereum market cap is 10 times that of XRP today and that's what matters. Now, a $10,000 Ethereum gives us a market cap of 1.2 billion. A $1.2 billion market cap on XRP, I don't know, doing some quick math, what does that give us? 1.2 billion, I don't have a calculator on me, divided by 30 million. I think that's about a 400X, if I'm not mistaken. So a 400X on 60 cents is $24. So if you think that Ethereum can hit $10,000, then you should agree that XRP can realistically hit above $20. And the thing to remember is that XRP flipped Ethereum in the last site for a small period of time. And so if XRP breaks out from this seven year long consolidation and goes on a run, $10, if we think Ethereum can hit a market cap of 1.2, what was that? Did I say billion 1.2 trillion? I meant, sorry, 1.2 trillion. And if XRP can hit 1.2 trillion, that puts us at 24. That means that if XRP can even hit half a trillion, that puts us at 10 bucks. Right. So if you think this is irrational or ridiculous, then you're irrational and ridiculous if you think Ethereum can hit $10,000, right? Like, it's pretty simple logic, but it escapes a lot of people. So yeah, if XRP breaks out, easily new highs, easily, in my opinion, double digits, and let's see if we can get to 20 or 30 bucks. That's kind of where I think is a sweet spot and where I love to take a lot of profits.
Speaker 2
That will be amazing, Cred, because I got some XRP bags going back since 2017. So,
Speaker 1
man,
Speaker 2
amazing analysis, dude. And this is why I'm a big fan of yours. Really great stuff. Where can people follow you?
Speaker 1
People can follow me on on X at credible crypto. They can follow me on YouTube at credible crypto as well. And they can follow me on tiktok at credible crypto tiktok. I just started so there's not much on it yet. But it definitely give the YouTube and Twitter a follow. I post all my long form videos and long form content on YouTube. And so if you really want to get a better idea, if you enjoyed this video on the way that I analyze the charts, you really want to tune into my YouTube channel. If you want smaller, briefer updates, definitely check out my Twitter. Awesome.
Speaker 2
I'll link to everything. Everyone check out the description. Go follow Cred on YouTube and Twitter X and even TikTok as well. Cred, great stuff, man. Thank you so much. Thank
Speaker 1
you, Tony.
Get the Snipd
podcast app
Unlock the knowledge in podcasts with the podcast player of the future.
AI-powered
AI-powered
podcast player
Listen to all your favourite podcasts with AI-powered features
Discover
highlights
Listen to the best highlights from the podcasts you love and dive into the full episode
Discover
highlights
Listen to the best highlights from the podcasts you love and dive into the full episode
Save any
moment
Hear something you like? Tap your headphones to save it with AI-generated key takeaways
Save any
moment
Hear something you like? Tap your headphones to save it with AI-generated key takeaways
Share
& Export
Send highlights to Twitter, WhatsApp or export them to Notion, Readwise & more
Share
& Export
Send highlights to Twitter, WhatsApp or export them to Notion, Readwise & more
AI-powered
podcast player
Listen to all your favourite podcasts with AI-powered features
AI-powered
podcast player
Listen to all your favourite podcasts with AI-powered features
Discover
highlights
Listen to the best highlights from the podcasts you love and dive into the full episode
Discover
highlights
Listen to the best highlights from the podcasts you love and dive into the full episode