As XRP has fallen sharply from its recent high, debate over its market capitalization, which has surpassed $80 billion, has emerged as a new point of contention in the market. Some argue that XRP's already large size, rather than its price itself, could limit its future upside.

Dubai Investor Royal Kane: 'I Will Not Invest in XRP'

According to cryptocurrency industry sources on the 18th, Royal Kane, a cryptocurrency investor based in Dubai, recently stated that he will not invest in XRP. The key reason he cited was XRP's market capitalization of approximately $81 billion.

XRP recently rose to around $1.68 before falling back to around $1.30, marking a correction of roughly 23% from its high. Market data at the time showed XRP's market capitalization at about $81.68 billion and trading volume at about $4.12 billion.

Assessing Upside by 'Market Cap,' Not 'Price'

Kane's perspective differs from the simple notion that XRP's price is expensive. He argues that the scale of capital needed for further gains should be assessed based on total market capitalization rather than the price of an individual token.

He said he is focusing on cryptocurrencies with relatively small market capitalizations that possess strong narratives capable of drawing in the market. He cited Solana's past 'Ethereum killer' narrative, Pepe's community, and Zcash's privacy-related story as examples. However, this is strictly Kane's personal investment viewpoint and does not indicate XRP's future price direction.

ETF Net Inflows of $153.55 Million... Hard to See as Simple Weakness

XRP's recent trend is also difficult to view as simple weakness. Significant capital flowed into XRP spot ETFs in August. According to published figures, net inflows into U.S. spot XRP ETFs reached $153.55 million as of August 28, with a substantial portion of the inflows concentrated in the latter half of the month.

Meanwhile, macroeconomic factors and U.S. cryptocurrency policy variables have recently emerged as burdens on the broader market, including XRP. The U.S. Federal Reserve's interest rate hikes and the failure of the CLARITY Act, a cryptocurrency market structure bill, to clear a procedural hurdle in the U.S. Senate have been cited as variables affecting risk-asset investment sentiment.

Kane's Remarks Are Personal Views... Distinct from Ripple's Business

There are aspects of Kane's claims that warrant caution. While pointing to XRP's high market capitalization, he also expressed negative views about Ripple's products and revenue. However, these should be treated as an investor's opinion.

In fact, Ripple operates its payments business Ripple Payments, the stablecoin RLUSD, and Ripple Prime, a prime brokerage business for institutions. Therefore, while Kane's assessment of XRP's market capitalization can be seen as a personal investment judgment, it is difficult to accept his suggestion that Ripple has no products as objective fact.

Buying XRP Is Not the Same as Holding Ripple Shares

Another distinction to make is the relationship between XRP and Ripple as a company. Buying XRP on the general market means exposure to the price movements of the cryptocurrency XRP, and it is not the same as acquiring shares in Ripple. Holding XRP alone does not directly confer stakes in Ripple's businesses such as Ripple Payments, RLUSD, or Ripple Prime.

Key Variables Ahead: ETF Flows, Trading Volume, U.S. Regulation

Ultimately, the market's key variables remain how XRP behaves around the $1.30 level, along with ETF fund flows, trading volume, U.S. monetary policy, and the regulatory environment. Whether a market cap exceeding $80 billion acts as a burden on XRP, or whether institutional capital and ecosystem growth support it instead, will have to be confirmed by future market data.

[Cryptocurrency prices and market capitalizations fluctuate in real time, and market participants' outlooks may reflect personal views. This article is not a recommendation to invest in any specific cryptocurrency, and the final judgment on investments and the responsibility for them lies with the investor. This article was partially assisted by AI in the writing process.]