Recent discussions in the crypto community, particularly from a figure known as Crypto Tank, have reignited the debate about the potential for XRP to reach a price of $1,000. Crypto Tank argues that skepticism surrounding this target often stems from a misunderstanding of XRP’s utility in the global financial system.
According to him, to understand how XRP could achieve such high valuations, it’s essential to examine its impact on global finance, particularly compared to existing systems like SWIFT. SWIFT, which facilitates international bank messaging, handles a staggering $5 to $7 trillion in daily transactions. However, its messaging service doesn’t include the actual settlement of these transactions, which can be costly and time-consuming.
Currently, each SWIFT transaction can cost between $20 and $50, with settlement times stretching into days. By contrast, XRP can streamline both messaging and settlement processes to mere seconds at a fraction of the cost, potentially saving banks hundreds of billions of dollars annually.
Growing Demand for XRP
As financial institutions begin to recognize these savings, the demand for XRP is expected to surge. If just 10% of SWIFT’s daily volume were to be processed through XRP, that would equate to approximately $500 billion in transactions each day. Major financial entities like JP Morgan and Bank of America also contribute trillions in daily volumes, highlighting XRP’s potential market.
The Path to $1,000
The value of XRP is directly linked to its capacity to support high-volume transactions. Crypto Tank suggests that the circulating supply of XRP—currently around 56 billion tokens—might not fully represent the available liquidity. A substantial portion is held in escrow by Ripple, leaving less available for transactions. If only 10 billion XRP were allocated to liquidity pools, each token would need to be valued at around $100 to support a $1 trillion pool.
He wrote, “So divide $1 trillion in value/volume by 10 billion and you get a $100 XRP needed to facilitate that $1 trillion in value. This is why XRP has to be very high to move just 10% of Swifts daily volume. When you start adding the other banks in it gets crazy how high XRP will go.”
