Experts say XRP could reach $1,000 based on $1 trillion in cross-border payments

A recent report has emerged predicting a massive rise in XRP price to $1,000, a price that takes into account a scenario where daily cross-border payments reach $1 trillion.

XRP’s utility in cross-border payments, particularly in Ripple’s instant liquidity product, now called Ripple Payments, has generated bullish sentiment toward the cryptocurrency among market participants.

XRP's practicality in cross-border payments has attracted the attention of many payment institutions. Last December, a JPMorgan report mentioned Ripple and XRP as potentially helping to solve the $120 billion problem trapped in cross-border payments. Crypto Basic also reported in November 2023 that Grayscale sees XRP as a potential alternative to SWIFT in cross-border settlements.

In addition, the American Physical Society, the International Monetary Fund, and the World Bank have also emphasized the usefulness of XRP in cross-border payments in different reports. Interestingly, Gary Gensler, chairman of the U.S. Securities and Exchange Commission, once admitted that XRP has advantages in cross-border payments compared to traditional fiat currencies.

As the public recognizes this utility, investors believe XRP is significantly undervalued and predict an imminent price explosion, especially against the backdrop of growth in the cross-border payments sector. Ripple cited data from the Bank of England in its new Value to 2023 report, saying that the cross-border payments sector could reach $250 trillion in transactions over the next three years.

If this prediction comes true, experts believe that the XRP price will need to rise significantly beyond its current price of less than $1 to handle a portion of this volume. Last August, Mason Versus, a member of the XRP community and founder of Gold Squad, put forward a report on the price corresponding to the hypothetical cross-border payment transaction volume.

Recently, market analyst EGRAG took note of the report, lending support to its contents. In this report, the analysis assesses what XRP price needs to reach to cope with different daily cross-border payment transaction volumes.

At $100 to $500, XRP could handle $1 trillion in daily payments, but at $6 trillion to $20 trillion, that price becomes less feasible. This is because the circulating supply of XRP is only 55 billion, which is not enough to handle the number of XRP tokens required to handle these transactions.

Remember, financial expert Shannon Thorpe once argued that a price of $500 would undervalue XRP if it captured even a portion of the projected $250 trillion in cross-border payments transactions.

Versluis’ report suggests that only if XRP reaches $1,000 would it be able to handle daily payments of $1 trillion to $20 trillion. At a price of $1,000, the market would need to move 1 billion XRP tokens to handle $1 trillion in transactions, and 20 billion XRP tokens to handle $20 trillion in transactions.

For XRP to reach a price of $1,000, it would need to surge by a massive 188,543% from its current price of $0.5301. Since this price could push XRP’s market capitalization to an unimaginable $55 trillion, some industry commentators are skeptical.

Additionally, some have pointed out that $1 trillion in daily cross-border transactions over the next decade or more would be a daunting task for XRP. For reference, global cross-border transaction volume in 2022 was US$150 trillion, with an average daily transaction volume of US$410 billion. A $1 trillion transaction would more than double that.

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