The XRP community has gone into a frenzy about a possible XRP price following a tweet by the digital currency platform Uphold that hinted at nothing but “XRP just hit $1,000. What are you tweeting?”
This unsurprisingly drove excitement but also raised eyebrows in skeptical crypto circles where such predictions do not go without heated debate.
XRP Price Surge: Can it Hit $1,000 as Predicted?
At the time of writing, XRP price was jumping above the $0.60 level. That said, the digital asset seems to display strong momentum as it stands 3.6% in gains week-over-week and up 11% month-over-month. Still, XRP remains 84% off of its ATH and lags most major crypto assets year to date.
However, it all began last year, in November when one of the most popular financial blogs, WallStreetBulls, chipped in with its own audacious prediction.
It confidently said:
“XRP reaching $1,000 was no more an unreachable dream and it could well happen within a few months if not weeks. #XRP #CryptoRevolution.”
Also, a recent commentary from Crypto Tank, a noted personality in the XRP community, once again brought to light the probability of XRP going up to $1,000. Crypto Tank said critics may undervalue the significant utility of XRP, especially in the global financial systems.
Skeptics Call Out “Gaslighting” as Price Prediction Sparks Debate
Clearly, not everyone is as confident about the potential of XRP.
Vocal skeptic JO rebutted:
“You really think it will jump from a $33 billion to a $100 trillion market cap overnight? That’s 20 times Apple’s value and 90 times Bitcoin’s. Stop the gaslighting! Let’s get it to $1, or maybe $5-$6.”
Therein lies perhaps the greatest doubting factor in the crypto space: how did such a great leap in XRP price even occur? This would indicate that the market cap surges past $100 trillion to $1,000, which would easily overshoot some of the world’s biggest companies and leading cryptocurrencies.
Just for comparison, Apple’s current market capitalization is sitting at approximately $3.30 trillion, with Bitcoin, the largest cryptocurrency, sitting at approximately $500 billion. That shows just how much more XRP would have to go to reach a value of $1,000 and points out its significant challenges.
What Could Spur $1000 Growth?
Although $1,000 might be considered ambitious for some when it comes to XRP price, several aspects could push for such growth. Digital currencies have shown that their prices can surge to extreme highs due to good sentiments, changes in technology, or even institutional investments, just like Bitcoin did with Microstrategy.
Such a valuation could be reached only in the case of more than just the right market conditions coming into play; it would likely take a change in how financial systems work around the world. XRP would need to be even more deeply integrated into cross-border transactions and banking infrastructure than it currently is. Just recently, Ripple-partner SBI Holdings announced its participation in Project Agora, a joint initiative led by the Bank for International Settlements (BIS) and seven central banks. This development has gone well within the XRP community, in part due to speculation of its potential integration or alignment into a unified ledger initiative in cross-border payments.
From the tweet to the follow-up post by WallStreetBulls, there is increased confidence in XRP eventually changing the game in finance. At the same time, as JO has mentioned, even a $1 or $5 target will be worth an achievement for any XRP holder.
Therefore, understanding how XRP can achieve unparalleled valuations calls for a critical look into the current global financial systems and their possible benefits from the adoption of XRP.
The Meaning of SWIFT in the Whole Story
SWIFT stands for the Society for Worldwide Interbank Financial Telecommunication and forms a basic backbone for cross-border transactions, processing an average daily messaging volume of $5-$7 trillion. SWIFT only handles the messaging portion, and actual settlements take place through separate systems, such as TARGET2 in the EU and FEDWIRE in the United States.
Yet, its current structure leaves a lot to be desired in terms of speed and costs, where messaging fees for transactions range from $20 to $50, and settlements may take days.
Also, just recently, Crypto Tank, one of the many analysts in the crypto sphere has commented on the trajectory of the XRP price, stating he sees XRP reaching $100 in valuation if it captures 10% of the daily transaction volume from SWIFT.
By contrast, the addition of RippleNet could enable an entire transaction-to-settlement process to be completed in seconds at a fraction of that cost, thus saving banks hundreds of billions of dollars in fees annually.
Would Selling Your XRP Be Retarded?
While this movement of the XRP price has been frustrating for holders of the asset, according to Crypto trader analyst Alex Cobb, the asset is very well positioned for a macro breakout this cycle. He says this is a bad investment decision for those selling XRP now, calling it “retarded.” Cobb mentioned several key indicators that signal the bullish sentiments of XRP, like the latest breakout of the crypto above a long-standing resistance level on the monthly chart. Just recently, crypto analyst Tony Edward agreed with Cobb and said that the XRP bull run could begin soon.
Cobb, on the other hand, also points to the fact that the XRP/BTC has bounced off its historical low in July, a sign of strong recovery against Bitcoin as evidenced by several weeks of positive closes. He adds, “The market dominance of XRP bounces back, and has risen 1.10% in the week and 11.9% in the last month.”.
He even points out that a trendline that has been constraining the XRP price for almost seven years has been broken, and the asset is now free to rise. Besides this, he says speculation of a possible XRP ETF will increase demand and drive prices higher. Finally, he mentions the recent resolution of the SEC case against Ripple, which many XRP enthusiasts have felt was the main thing holding the asset’s growth back. With these drivers set in motion, Cobb thinks XRP is ready for a strong uptrend.
Realistic Path to $1000
The possible XRP price is very much intertwined with its use case: enabling high-value transactions on the XRP. It needs to appreciate in value to assume such volume on the blockchain it accommodates. Currently, the circulating supply of XRP stands at approximately 56 billion tokens. This figure is believed to be misleading because Ripple has maintained about 39 billion tokens in escrow; many more are held by retail investors, whales, and financial institutions.
The supply that may be actually used for transactions could be well below what’s reported, since not much XRP is needed to be used in a liquidity pool. If 10 billion XRP were dedicated to being used for liquidity, having a price of about US$100 per token would accomplish a US$1 trillion liquidity pool. This figure will increase even more as more and more financial organizations start working with XRP, and by then, XRP can easily reach the so-feared $1,000 price.
Teuta
Teuta is a seasoned writer and editor with over 15 years of experience in macroeconomics, technology, and the cryptocurrency and blockchain industries. Starting her career in 2005 as a lifestyle writer for Cosmopolitan in Croatia, she expanded into covering business and economy for several esteemed publications like Forbes and Bloomberg. Influenced by figures like Don Tapscott and Bruce Dickinson, Teuta embraced the blockchain revolution, believing crypto to be one of humanity’s most crucial inventions. Her fintech involvement began in 2014, focusing on crypto, blockchain, NFTs, and Web3. Known for her excellent teamwork and communication skills, Teuta holds a double MA in Political Science and Law, enjoys punk rock, chablis, and has a passion for shoes.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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