XRP’s Utility in Cross-Border Payments
This utility has caught the attention of multiple payment entities over the years. Last December, a JPMorgan report mentioned Ripple and XRP as entities that could help unlock the $120 billion trapped in cross-border payments. The Crypto Basic also revealed in November 2023 that Grayscale highlighted XRP as a potential alternative to SWIFT in cross-border settlements.
In addition, The American Institute of Physics, the IMF and the World Bank also spotlighted XRP’s utility in cross-border payments in different reports. Interestingly, even SEC Chair Gary Gensler previously acknowledged XRP’s advantages for use in cross-border payments over traditional fiat currencies.
With this utility recognized by the general public, investors believe XRP is massively undervalued, projecting an imminent price explosion, especially on the back of a growth in the cross-border payment sector. Citing the Bank of England, Ripple noted in its 2023 New Value Report that the cross-border payment sector could witness a $250 trillion in volume in the next three years.
With this projection expected to materialize, pundits argue that XRP would need to soar way beyond its current price below $1 if it captures a fraction of this volume. Mason Versluis, an XRP community figure and founder of Gold Squad, presented a sheet last August of hypothetical price requirements for varying cross-border payment volumes.
An Argument for a $1,000 XRP Price
A prominent market analyst, by the Twitter (X) pseudonym Mason Versluis recently called the XRP community’s attention to a document, lending credence to the lofty price target. In the sheet, the analysis evaluates trading liquidity needed to be for XRP to cater to different daily cross-border payment volumes.