Expert Believes XRP’s Potential Far Exceeds $500, Citing Ripple’s $250 Trillion Cross-Border Projection
Financial expert Shannon Thorp has expressed the view that valuing XRP at $500 is conservative, particularly in light of Ripple’s projection that cross-border payments could reach $250 trillion by 2027. Thorp believes that facilitating such a volume of payments would require a much higher XRP price.
Ripple’s 2023 New Value Report predicts that over $250 trillion will be transacted in cross-border payments by 2027. Considering that the total supply of XRP is 100 billion tokens, achieving this volume of transactions could potentially value each XRP token at an average of $2,500, assuming all tokens are in circulation.
However, it’s important to note that the projected $250 trillion is for the entire cross-border payment sector, not just XRP-based transactions. This estimate implies XRP dominance in the sector, which may not be the case.
Unraveling the Potential: XRP’s Role in the $250 Trillion Cross-Border Payment Sector
The $250 trillion estimate originates from a Bank of England study, highlighting the economic significance of cross-border payments. The BoE projected that these payments, valued at around $150 trillion in 2017, could exceed $250 trillion by 2027. Factors contributing to this growth include global mobility, cross-border asset management, global investments, and international remittances.
As such, Thorp’s perspective on XRP’s potential value factors in Ripple’s ambitious projection and the broader context of cross-border payments.
Please note that cryptocurrency investments carry inherent risks, and it’s essential to conduct thorough research before investing.