XRP Surge to $1,000 Backed by $1 Trillion Cross-Border Payment

• XRP could take up as much as $1 trillion in cross-border payment volume, driving its utility and value to $1,000.
• Ripple’s On-Demand Liquidity product (now Ripple Payments), has been highlighted by the IMF and the World Bank as revolutionary.

Ripple’s XRP has witnessed a surge in cross-border payments utility value. Experts foresee this growth accelerating to mark a large portion of the $1 trillion volume, leading to the value of the token rising to $1,000. This is a fairly conservative outlook based on the projected $250 trillion cross-border payment volume.

For context, the total value of cross-border transactions across the globe in 2022 amounted to a staggering $150 trillion. This translates to a daily average volume of $410 billion.

With businesses and governments involved in international transactions, there’s a rising need for a more efficient, speedy, and cheaper means to transfer value. Cryptocurrencies powered by blockchain technology have emerged as a leading option.

Ripple, in particular, has built the technology that can support cross-border payments, helping revolutionize the financial industry. The usefulness of XRP in cross-border payments has attracted interest from payment companies. For instance, a JPMorgan report in December 2023 identified Ripple and XRP as potential solutions to free up 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.

As CNF reported, the IMF and the World Bank have also highlighted Ripple for its technological capabilities. This has boosted its reputation in the industry which could be key to forging partnerships with industry leaders.

Market analyst EGRAG brought a document to light, suggesting its validity. This analysis explores the XRP price needed to facilitate various daily cross-border payment volumes. While prices between $100 and $500 could handle $1 trillion in daily transactions, this becomes impractical for volumes between $6 trillion and $20 trillion.

The $XRP Liquidity Cheat Sheet 🤫 pic.twitter.com/YBY3AF7ClJ

— MASON VERSLUIS (@MasonVersluis) May 21, 2023

However, there could be a limiting factor. XRP’s current circulating supply of 55 billion wouldn’t be enough tokens to manage such high volumes. This highlights a potential challenge for XRP if adoption for massive cross-border payments surges.

With a $1,000 price target and a $55 trillion market cap, XRP will require a 188,543% upsurge from its current position. Some experts have expressed doubt over this growth but the unlimited potential offered by blockchain and Ripple means this could still be achieved in the coming years.

At the time of writing, XRP is trading for $0.54 after a 3% surge in the last 24 hours. This sees the 7th-ranked altcoin extend its weekly profits by 6% as it eyes the $0.60 resistance position.

Although investors are largely bullish on the token, the ongoing SEC v. Ripple case continues to give investors jitters. As CNF reported earlier today, Ripple fired back at the SEC this week, deconstructing the agency’s attempt to retain the expert testimony of Andrea Fox, its Enforcement Division’s accountant.

Although the case is a long way to a conclusion, legal experts are confident that Ripple will emerge victorious.

Recommended for you: