How can XRP become the US strategic reserve? The market's true reaction to this bold proposal

Ripple (XRP) has recently once again become a focal point of discussion in the crypto market. Triblu founder Joshua Dalton proposed a radical idea: to include XRP as a strategic asset of the US Federal Reserve. This not only sparked heated debate in the market but also prompted investors to reevaluate the true value of this established cryptocurrency.

Bold Calculations Supported by Data

Dalton’s proposal is based on a set of eye-catching figures. The current US debt stands at $38 trillion, while Ripple holds a total of 3.44 billion XRP tokens. Calculating based on an 80% debt coverage target, the theoretical price of XRP should reach $883. This implies a 46-fold increase from the current price of $1.85—equivalent to a 4,600% growth potential.

From an annual salary perspective, this increase represents enormous wealth creation potential. For holders, this is not just a numbers game but also involves imagining the future of the monetary system.

The Gap Between Reality and Dreams

However, lofty ideals often clash with harsh realities. Critics point out several pain points:

First is legal obstacles. Whether XRP can legally become a national-level reserve asset is fundamentally questionable, directly affecting the feasibility of the proposal. Second is market structure issues. Ripple and its founders hold a large amount of XRP, and such concentration is difficult to accept in traditional finance. Third is liquidity and price discovery. Currently, XRP has a circulating supply of over 60.5 billion tokens and a market cap of $111.9 billion, but whether this mechanism can support hundreds of times growth remains uncertain.

VanEck analyst Matthew Sigel has previously stated that Bitcoin has advantages over XRP in macroeconomic applications due to its fixed supply and decentralization.

Who Can Truly Benefit?

The most enthusiastic voices for this proposal come from large holders. Most XRP reserves are held by Ripple, early founders, and trading platforms. The risk of retail investors chasing high prices is evident.

The current market sentiment index shows mixed signals. On one hand, XRP’s liquidity on major platforms is relatively sufficient, with 7.44 million addresses holding tokens. On the other hand, recent price trends are weak, with a 17.88% decline over the past 30 days, reflecting market caution toward such grand predictions.

Underlying Reflection

Including XRP as a strategic reserve asset involves core decisions in national financial strategy. Relying solely on mathematical models ignores political, legal, and market realities. For XRP to become the “financial backup team” of the United States, it must overcome not just price hurdles but also gain recognition across the entire financial system.

Currently, this remains more of an industry debate than an imminent reality.