Analyst Claims XRP Showed a 1,200x Market Multiplier During Friday’s Crash

Cryptocurrency XRP has drawn attention after market analyst Zach Rector claimed it exhibited an extraordinary 1,200x market capitalization multiplier during last Friday’s dramatic crypto crash. According to Rector, this represented one of the strongest leverage effects between market value and capital flow he has ever observed for XRP.

One of the Worst Market Collapses in Crypto History On October 10, the crypto market suffered its largest single-day crash ever, with more than $19 billion in liquidations across exchanges. XRP was among the hardest-hit assets, with $700 million in total liquidations, including $610.5 million from long positions. The token’s price plummeted from $2.80 to $1.58, losing over 43% of its value within hours before rebounding to close the day at $2.37. As of now, XRP has recovered slightly and trades around $2.55.

Rector: “$55 Million Outflow Triggered a $70 Billion Drop” Following the crash, Zach Rector analyzed how a relatively small amount of capital outflow could lead to such a massive decline in market capitalization. Using CoinGlass data, he calculated that during the most volatile hour of the crash, XRP saw an estimated $55.79 million in net outflows, while its market cap plunged from $152 billion to $83 billion — a loss of nearly $70 billion.

From this disparity, Rector derived a market capitalization multiplier of approximately 1,254x. In a broader four-hour window, he found a similar result — a 1,215x multiplier, corresponding to a $78.85 billion drop in market cap. He argued that these figures demonstrate how even small capital movements can cause massive price swings when liquidity is thin. “It only takes a small wave of selling pressure for the market to collapse,” Rector noted.

Fragile Market Structure — and Room for Explosive Growth Rector emphasized that the XRP market remains highly concentrated, with a few large holders dominating liquidity. This makes the asset extremely sensitive to both selling and buying pressure. However, he also suggested that this effect could work in the opposite direction — with massive upside potential once institutional capital begins flowing in, especially through a potential XRP ETF.

He compared the situation to Bitcoin’s surge after ETF approval in the U.S. Rector referenced Canary Capital CEO Steven McClurg, who predicted that an XRP ETF could attract $5–10 billion in inflows during its first month.

Based on that estimate, Rector projected a conservative 100x–200x multiplier, suggesting XRP’s market capitalization could rise by $500 billion to $1 trillion beyond current levels.

Critics Point Out Major Limitations Despite the striking figures, Rector’s analysis faces serious methodological issues. His data on “capital outflows” was based on exchange flows — token transfers between wallets and exchanges — which do not represent real capital entering or leaving the market. In practice, these numbers often only reflect traders repositioning tokens in response to price volatility, not new money moving in or out of XRP. A more accurate indicator of real buying and selling pressure is the Cumulative Volume Delta (CVD), which tracks the balance between buy and sell orders over time. Unlike exchange flow data, CVD shows how actual trading activity impacts price changes. Notably, after the October 10 crash, XRP posted three consecutive days of gains (October 11–13) despite mixed exchange flow data — highlighting that flows alone don’t explain price movements.

Summary Zach Rector’s analysis underscores that XRP remains extremely reactive to even small shifts in liquidity, confirming its high volatility and fragile market depth.

While his 1,200x multiplier is based on debatable data, the broader point stands — institutional inflows through ETFs could trigger exponential growth in XRP’s valuation. If billions of dollars of new capital were to enter the market, XRP could emerge as the next major crypto powerhouse alongside Bitcoin and Ethereum.

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