The XRP price has faced challenges over the past three years, remaining low even while Bitcoin and other altcoins surged to potential new all-time highs. Nonetheless, the XRP community continues to hold firm in their conviction that the altcoin’s value will achieve new heights. Predictions have ranged widely, from hitting $1 to as much as $1,000. The latter has sparked considerable debate among crypto enthusiasts. However, one crypto analyst asserts that the XRP price could eventually reach $1,000, providing reasons for this optimistic outlook.
Transforming Global Banking Systems
The key advantage of the XRP token has always been its intended integration into global banking systems, facilitating cheaper, quicker, and more efficient transactions. This expectation of the token’s application in banking was the initial catalyst behind its rapid ascent and continues to nurture confidence in its future potential.
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Crypto researcher CryptoTank recently took to X (formerly Twitter) to reassert the value proposition concerning the XRP price, highlighting this utility. The researcher notes that SWIFT is already incorporating RippleNet into its operations, and given SWIFT’s vast transaction volume, this could lead to significant inflows for the token.
They emphasize that SWIFT currently executes approximately $5-$7 trillion in daily volume, despite transaction fees ranging from $20 to $50. In contrast, employing RippleNet could reduce costs to mere cents, resulting in annual savings of hundreds of billions of dollars for the payment platform. Furthermore, the researcher articulates that even if Ripple captures just 10% of SWIFT’s trading volume, it would still represent a massive $500 billion or more flowing through RippleNet each day.
At such a pace, the current XRP price would be insufficient to accommodate the volume generated by SWIFT alone. Consequently, the researcher posits that the XRP price would need to appreciate considerably to accommodate this new volume. “XRP has to be very high to move just 10% of SWIFT’s daily volume,” the researcher explained. “When you start incorporating other banks, it becomes astonishing how high XRP could rise.”
The $1,000 XRP Price Discussion
The recent discourse on the possibility of the XRP price reaching $1,000 was ignited when the Uphold crypto exchange posed a question to the community regarding their actions if XRP were to hit that target. This inquiry led to speculation on whether the altcoin could realistically achieve such a price, provoking a variety of responses.
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However, on-chain analyst TruthLabs refuted this scenario, explaining the magnitude of market cap growth required for XRP to reach this target. According to the analyst, the XRP market cap would need to swell to $100 trillion, which is 50 times the current market cap of the entire crypto ecosystem.
Featured image created with Dall.E, chart from Tradingview.com
This presents a challenge, as it represents an enormous leap in valuation.
Featured image created with Dall.E, chart from Tradingview.com
