It turns out this is the assumption behind a simple analysis of XRP's potential to reach $1,000! Acceptable?

A recently presented analysis suggests that XRP has the potential to reach $1,000 if it manages to capture a significant portion of the $1 trillion daily cross-border payment volume.

The Role of XRP in Cross-Border Payments
XRP's utility in facilitating cross-border transactions, particularly through Ripple's On-Demand Liquidity product (now called Ripple Payments), has been significant in increasing optimistic sentiment about the cryptocurrency. This utility has attracted interest from several large payment companies over time. For example, a December report by JPMorgan highlighted Ripple and XRP as potential key players in unlocking $120 billion tied up in cross-border payments. Additionally, a November 2023 report by Grayscale emphasized XRP as a viable alternative to the traditional SWIFT system in international settlements.

Organizations such as the American Institute of Physics, IMF, and World Bank have also recognized the value of XRP in cross-border payments in various reports. Interestingly, SEC Chairman Gary Gensler has previously acknowledged XRP's superiority over traditional fiat currencies for these types of transactions.

Given this support, many investors believe that XRP is currently undervalued and anticipate a significant price spike, especially with the expected growth in the cross-border payments sector. Ripple's 2023 New Value Report, citing the Bank of England, projects the cross-border payments sector could see $250 trillion in volume over the next three years.

The case for XRP is $1,000
Mason Versus, a well-known figure in the XRP community and founder of Gold Squad, previously created a model depicting the hypothetical price that XRP would need to reach to handle varying daily cross-border payment volumes. EGRAG, a market analyst, recently highlighted this model, giving more credibility to its predictions.

According to the model, while XRP prices ranging from $100 to $500 can handle daily payment volumes of up to $1 trillion, they become impractical to handle larger volumes of $6 trillion to $20 trillion due to the shortage of circulating XRP supply of 55 billion tokens.

Given financial expert Shannon Thorpe's view, XRP will still be undervalued at $500 if it manages to secure a portion of the projected $250 trillion cross-border payment volume.

Versluis' model posits that for XRP to adequately handle daily payment volumes of between $1 trillion to $20 trillion, its price would need to be at least $1,000. At this price, the market would need to circulate 1 billion XRP tokens for a volume of $1 trillion and 20 billion tokens for a volume of $20 trillion.

Reaching $1,000 would represent an astronomical increase of 188.543% from XRP's current price of $0.5301, potentially increasing XRP's market cap to an unprecedented $55 trillion. However, some industry observers remain skeptical, noting that reaching $1 trillion in daily volume across borders in the next decade will be a major challenge. By 2022, total global cross-border volume will be $150 trillion, averaging about $410 billion per day, making the $1 trillion figure more than double the current average.
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