XRP has the potential to capture a significant portion of the $1 trillion cross-border payment volume, driving its value to $1,000. The International Monetary Fund (IMF) and World Bank have recognized Ripple’s On-Demand Liquidity product (now Ripple Payments) as a revolutionary solution.
The utility value of XRP in cross-border payments has experienced a surge, and experts predict that this growth will continue, reaching a substantial portion of the projected $250 trillion volume. This conservative outlook is based on the fact that the total value of cross-border transactions worldwide in 2022 amounted to an astonishing $150 trillion, with a daily average volume of $410 billion.
As international transactions involving businesses and governments become more prevalent, there is a growing demand for a faster, more efficient, and cost-effective means of transferring value. Cryptocurrencies powered by blockchain technology, such as XRP, have emerged as a leading option.
Ripple has developed the technology to support cross-border payments, revolutionizing the financial industry. The usefulness of XRP in this space has attracted interest from payment companies. For example, a JPMorgan report in December 2023 identified Ripple and XRP as potential solutions to unlock the $120 billion trapped in these transactions. Additionally, Grayscale highlighted XRP’s potential as an alternative to SWIFT for cross-border settlements in November 2023.
The recognition of Ripple’s technological capabilities by the IMF and World Bank has further enhanced its reputation in the industry, potentially leading to partnerships with industry leaders.
An analysis by market analyst EGRAG suggests that XRP prices between $100 and $500 could handle $1 trillion in daily transactions. However, these prices become impractical for volumes between $6 trillion and $20 trillion.
One potential limitation is XRP’s current circulating supply of 55 billion tokens, which may not be sufficient to handle such high volumes. This presents a challenge for XRP if adoption for massive cross-border payments increases.
To reach its $1,000 price target and achieve a $55 trillion market cap, XRP would need to experience a 188,543% surge from its current position. While some experts express doubt about this growth, the limitless potential offered by blockchain and Ripple means that this could still be accomplished in the coming years.
At the time of writing, XRP is trading at $0.54 following a 3% surge in the last 24 hours. As the seventh-ranked altcoin, it has extended its weekly profits by 6% and is aiming for the $0.60 resistance position.
Despite investors generally being bullish on XRP, the ongoing SEC v. Ripple case continues to cause uncertainty. Ripple recently responded to the SEC and dismantled the agency’s attempt to retain the expert testimony of Andrea Fox, the Enforcement Division’s accountant. While the case is far from being concluded, legal experts are confident that Ripple will emerge victorious.
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