Expert Dissects $60 Forecast For XRP Price, Institutional Investors Are The Key
A particular crypto analyst has boldly predicted that XRP price could rise to $60, driven by the influx of demand and capital from institutional investors as it taps into the market share or daily volume of the SWIFT, a global messaging solution for banking and payment.
XRP Eyes $60 With SWIFTs Volume Boost
In a recent X (formerly Twitter) post, Levi Rietveld proposed a unique scenario where XRPs price could potentially surge to $60, marking a staggering increase of approximately 11,220% from its current value of $0.53. Firstly, Rietveld referred to a 2017 paper indicating SWIFTs daily payment processes.
According to the paper, SWIFT typically manages about $5 trillion in daily transactions, accumulating to $1.25 quadrillion every year. Based on current market changes and more adoption of the network, the analyst suggested that the figure will likely rise in 2024. He disclosed that SWIFTs daily transactions have possibly increased to $7 trillion, equating to $1.8 quadrillion annually.
The analyst also noted that SWIFTs payment message volumes are usually about 11.5 million daily, with an average payment size of around $45,000. Moreover, he reveals that the current average payment size has increased to $60,000 per transaction, highlighting the staggering amount of fees it takes to execute just one transaction.
Taking these figures into consideration, Rietveld has hypothesized that if XRP can acquire just 10% of SWIFTs overall market share, the cryptocurrency could see an astronomical increase in its price. Starting on a more conservative estimate, the analyst revealed that with a 5% market share which is about $239.4 billion in daily volume, XRP could see a 1,252.5X increase. This is equivalent to a 9,080.6% surge in XRP, pushing its value to new all time highs at $26.62.
Rietveld further estimated that with a 10% market share, XRPs price could rise to $52, and even surpass $200 with 20% of SWIFTs volume. The analyst has called on crypto investors to begin accumulating XRP, stressing that his ambitious projections for the cryptocurrency are not far-fetched, given its advantages over SWIFT in terms of cost, speed, and reliability.
Institutional Adoption To Drive XRP Price Even Higher
While hypothesizing the extent of XRPs price surge with a small percentage of SWIFTs volume, Rietveld also disclosed that the cryptocurrency could see a massive price increase as adoption from institutional investors skyrockets. The analyst disclosed that the XRP market may undergo a significant supply shock when institutional investors begin accumulating the cryptocurrency.
He revealed that over time, institutional investors will eventually need to buy XRP from the public supply, as the tokens locked in escrow would not be sufficient to meet demand. Considering XRPs already limited supply, Rietveld has projected that the potential supply shock would trigger a massive price rally to about $200 in the next 10 years.
Featured image from Shutterstock, chart from TradingView
Text source: NewsBTC
