An XRP valuation model, often described as a transaction velocity model, projects XRP could reach $20 within five years if it captures about 14% of global cross-border payments. The model starts with SWIFT handling roughly $150 trillion in annual cross-border payments and assumes XRP could process 14% of that total, about $21 trillion, with XRP tokens circulating and being reused to provide liquidity. With a fixed supply of 61 billion XRP, the math yields a future price of around $20, with room for higher figures if assumptions are adjusted. The centerpiece of this infrastructure is the XRP blockchain, which makes it possible to move money around the world faster and more cheaply.
Money can move in seconds, rather than in days. In my bear-case scenario, XRP might only capture 1% of SWIFT’s global payment flows. That would likely lead to a future price of just $4, which is basically where XRP was trading last summer. That being said, there’s a lot going in the right direction for both Ripple and XRP.
The SEC regulatory cloud over Ripple finally lifted last year, freeing up the company to get back to business as usual. And all the pieces seem to be falling into place after a prodigious acquisition spending spree. So if you’re willing to take a flyer on a high-risk, high-reward cryptocurrency, look no further than XRP. Within a span of just five years, it could be a $20 crypto and prove all the naysayers wrong.
Leave a Reply