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A recently surfaced sheet projects an XRP price increase to an audacious $1,000 value, factoring in a daily cross-border payment volume of $1 trillion.<\/b><\/p>\n
XRP\u2019s utility in cross-border payments, especially as utilized in Ripple\u2019s On-Demand Liquidity product (now Ripple Payments), has contributed to the bullish sentiments surrounding the cryptocurrency among market participants.\u00a0<\/span><\/p>\n This utility has caught the attention of multiple payment entities over the years. Last December, a JPMorgan report <\/span>mentioned<\/span> Ripple and XRP as entities that could help unlock the $120 billion trapped in cross-border payments. The Crypto Basic also <\/span>revealed<\/span> in November 2023 that Grayscale highlighted XRP as a potential alternative to SWIFT in cross-border settlements.<\/span><\/p>\n In addition, <\/span>The American Institute of Physics<\/span>, the <\/span>IMF<\/span> and the <\/span>World Bank<\/span> also spotlighted XRP\u2019s utility in cross-border payments in different reports. Interestingly, even SEC Chair Gary Gensler previously <\/span>acknowledged<\/span> XRP\u2019s advantages for use in cross-border payments over traditional fiat currencies.<\/span><\/p>\n With this utility recognized by the general public, investors believe XRP is massively undervalued, projecting an imminent price explosion, especially on the back of a growth in the cross-border payment sector. Citing the <\/span>Bank of England<\/span>, Ripple noted in its 2023 New Value Report that the cross-border payment sector could witness a $250 trillion in volume in the next three years.<\/span><\/p>\n With this projection expected to materialize, pundits argue that XRP would need to soar way beyond its current price below $1 if it captures a fraction of this volume. Mason Versus, an XRP community figure and founder of Gold Squad, presented a sheet last August of hypothetical price requirements for varying cross-border payment volumes.<\/span><\/p>\n Market analyst EGRAG recently called attention to the document, lending credence to its content. In the sheet, the analysis evaluates what XRP\u2019s price would need to be for XRP to cater to different daily cross-border payment volumes.<\/span><\/p>\n The $XRP Liquidity Cheat Sheet \ud83e\udd2b pic.twitter.com\/YBY3AF7ClJ<\/p>\n \u2014 MASON VERSLUIS (@MasonVersluis) May 21, 2023<\/p>\n<\/blockquote>\n – Advertisement –<\/span><\/p>\n At prices ranging from $100 to $500, XRP could sufficiently handle daily payment volumes from $1 trillion, but this price becomes less feasible at volumes from $6 trillion to $20 trillion. This is because XRP\u2019s circulating supply of 55 billion would not be sufficient for the amount of XRP tokens needed to handle these volumes.<\/span><\/p>\n Recall that finance pundit Shannon Thorpe previously <\/span>argued<\/span> that XRP would be undervalued at $500 if it locked in a portion of the projected $250 trillion cross-border payment volume.<\/span><\/p>\n Versluis\u2019 sheet proposes that XRP would only sufficiently address daily payment volumes ranging from $1 trillion to $20 trillion if its price is at least $1,000. At a $1,000 price, the market would need to move 1 billion XRP tokens to account for a $1 trillion volume and 20 billion tokens for a $20 trillion volume.<\/span><\/p>\n For XRP to clinch a $1,000 price, it would need to skyrocket by a massive 188,543% from its current value of $0.5301. With this price potentially pushing XRP\u2019s market cap to an unimaginable $55 trillion, some industry commentators have strongly expressed doubts.<\/span><\/p>\n Moreover, some have pointed out that a $1 trillion daily cross-border volume is a difficult task for XRP over the next ten years and beyond. For context, the entire global cross-border volume <\/span>stood<\/span> at $150 trillion in 2022, representing an average of $410 billion volume a day. A $1 trillion volume would be more than double this figure.<\/span><\/p>\n Disclaimer<\/strong>: This content is informational and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not reflect The Crypto Basic\u2019s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.<\/p>\n -Advertisement-<\/p>\n<\/div>\n<\/div>\nXRP\u2019s Utility in Cross-Border Payments<\/span><\/h2>\n
An Argument for a $1,000 XRP Price<\/span><\/h2>\n
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