Ripple is a growing community and no doubt the progress of the ecosystem will also affect XRP price. Recently, the Crypto Basic page on X posted an analysis showing how XRP could hit a massive price milestone if Ripple’s market cap reaches just 8% of the total U.S. M2 money supply.
According to the post, XRP has shown impressive resilience over the past few months. After dipping slightly to retest the $2 level, the price rebounded back to $2.24. Despite the market pressure, XRP has now spent five straight months above the $2 mark.
This is important because many analysts believe this $2 area could act as a strong foundation for a larger breakout when broader crypto conditions improve. Still, the $3 resistance remains a ceiling that XRP has not yet broken since February.
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What the M2 Money Supply Means for XRP
The post also highlights something much bigger than just price action. It focuses on the U.S. M2 money supply and what it could mean for Ripple’s future. The M2 is a key measure of how much money is circulating in the economy. It includes cash, checking and savings deposits, time deposits under $100,000, and retail money market funds.
Right now, the M2 money supply stands at around $21.86 trillion. That’s a 5.3% increase from December 2023—over $1 trillion added in just a few months. This growth signals more liquidity in the system. And when liquidity rises and interest rates remain relatively low, people tend to move their money into riskier assets like cryptocurrencies in hopes of better returns. This is one reason why tokens like XRP can benefit in such an environment.
This optimism comes as the broader economy sees a growing money supply. The U.S. M2 money supply, which includes cash, checking and savings deposits, time deposits under $100,000, and retail money market funds, has been rising steadily since December 2023.
— TheCryptoBasic (@thecryptobasic) June 11, 2025
Specifically, current… pic.twitter.com/fSgqHov77M
If Ripple Captures 8% of M2: What Happens to XRP Price?
The real headline here is the price projection. If Ripple’s market cap were to reach 8% of the total M2 supply, XRP could see a significant spike. At the current M2 level of $21.86 trillion, 8% would equal roughly $1.75 trillion. If XRP alone were to hit a market cap of $1.75 trillion, that would translate into an XRP price of around $32, assuming the circulating supply stays at approximately 55 billion tokens.
That would be a monumental leap from current levels. It’s also a reflection of what happens when large amounts of cash start looking for new opportunities. Of course, this is just a projection and depends on many moving parts, including investor sentiment, regulatory clarity, and the broader adoption of Ripple’s technology.
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Why It Still Depends on Market Reactions
Even with all that money in circulation, there’s no guarantee that XRP will rise in a straight line. If inflation suddenly surges, the Federal Reserve could raise interest rates or pull back liquidity to cool the economy. This kind of policy move could hurt crypto markets and slow down the kind of growth that would push XRP toward that $32 mark.
Still, the idea is simple. A bigger money supply usually means more cash flowing into investments. If Ripple continues to build out its ecosystem and gains stronger market confidence, XRP could ride that wave upward.
For now, XRP remains above $2 and is showing strength after months of uncertainty. If it holds this level and breaks through $3 soon, the road to higher prices may come quicker than many expect.
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