Recent disclosure of a liquidity sheet analysis incorporating a $1 trillion daily cross-border payment flow indicates that the price of XRP is poised for an extraordinary surge above $1,000.
The usefulness of XRP for international payments, particularly in Ripple’s On-Demand Liquidity offering (now Ripple Payments), has bolstered market participants’ optimistic views on cryptocurrencies.
The Use of XRP in International Payments
Over the years, this service has drawn the interest of several payment corporations. Ripple and XRP were identified as potential solutions to release the $120 billion stuck in cross-border payments in a December 2017 JPMorgan research. In November 2023, The Crypto Basic also disclosed that Grayscale had identified XRP as a possible substitute for SWIFT in cross-border transactions.
Furthermore, in other papers, the World Bank, the IMF, and the American Institute of Physics highlighted the usefulness of XRP in cross-border payments. It’s interesting to note that even SEC Chair Gary Gensler has highlighted the benefits of XRP over traditional fiat currencies for cross-border payments.
Investors feel XRP is significantly undervalued, predicting an impending price explosion, especially given the widespread recognition of this utility and the expansion of the cross-border payment industry. In its 2023 New Value Report, Ripple cited the Bank of England in stating that the cross-border payment industry may see a $250 trillion increase in volume over the following 3 years.
Scholars contend that XRP would need to surge above its present price below $1 if it were to take even a small portion of this volume, given the likelihood that this estimate would pass. Last August, Gold Squad creator and well-known member of the XRP community Mason Versluis gave a document outlining fictitious price needs for different cross-border payment volumes.
An Argument in Favor of $1,000 XRP
A well-known market analyst going by the Twitter (X) alias Mason Versluis recently brought attention to a document that supports the high price objective among the XRP community. The analysis in the sheet assesses the trading liquidity required by XRP to handle varying daily amounts of cross-border payments.
XRP could manage daily payment volumes of $1 trillion or more at prices between $100 and $500, but with quantities between $6 trillion and $20 trillion, this price becomes less realistic. The 55 billion XRP tokens now in circulation would not be enough to handle these quantities.
Remember that financial commentator Shannon Thorpe had claimed that if XRP locked in a percentage of the anticipated $250 trillion cross-border payment volume, the cryptocurrency would be undervalued at $500.
According to Versluis’ chart, XRP would only be able to handle daily payment volumes of between $1 trillion and $20 trillion if its price was at least $1,000. To account for a $1 trillion volume at a $1,000 price, the market would need to move 1 billion XRP tokens, and for a $20 trillion volume, 20 billion tokens.
XRP would need to soar by an incredible 188,543% from its present value of $0.5301 to achieve a $1,000 price. There are industry observers who are highly skeptical about XRP’s ability to reach an unthinkable $55 trillion in market capitalization at this price.
Furthermore, others have noted that XRP will face challenges in achieving a $1 trillion daily cross-border volume over the next 10 years and beyond. To put things in perspective, the total value of cross-border transactions worldwide was $150 trillion in 2022 or $410 billion every day on average.
- Published By Team Genuine Reporter