A target revealed by an expert analyst from banking giant Wells Fargo has caused a sensation. The target is so ambitious that even most of those who invest in the related altcoin may not believe it. In fact, it may be considered ridiculous. So why did they give such an outrageous target? What supports their prediction?
The Most Outrageous XRP Coin Prediction
Shannon Thorp from Wells Fargo claims that we will see an unusual price for XRP considering a sufficiently liquid market. The analyst, who predicts that the price of XRP may range from $100 to $500 within four to seven months, expects a price increase between 14,200% and 71,400% based on the current price.
Thorp argues that the current prediction models for XRP are flawed because they do not take into account external economic conditions when making predictions about broader adoption that could increase XRP’s price.
Thorp stated that a comparison with the international settlement system SWIFT provides a significant window into XRP’s potential. Assuming Ripple earns 30% of the $7 trillion daily processed by SWIFT, its daily usage would rise to $2.1 trillion.
The Future of XRP Coin
The Wells Fargo analyst’s prediction also points to the demand for XRP Coin. According to the prediction, there could be 50 to 75 billion XRP available for liquidity. Assuming that 300 to 1,000 banks have XRP, each firm would need approximately 75 million XRP. This would allow a significant amount of XRP to remain in the exchanges, enabling the price to reach the ambitious target of $500.
However, this distribution would still be insufficient to meet even 10% of JPMorgan’s SWIFT volume. The bank processes $8 trillion daily without considering real estate, derivatives, central bank digital currencies, and other tokenized assets. On the other hand, if the asset reaches $100 to $500 within the next four to seven months with an assumed minimum supply of 50 billion tokens, liquidity power could rise to $5 trillion to $25 trillion.
XRP Coin market value
So, will XRP Coin reach $500? No, it won’t. Ripple does not have a feature that would require it to become the world’s most valuable company. Everything it does can be replicated by hundreds of alternatives in the future. Moreover, reaching a price of $500 per unit would require billions of dollars in demand. On the other hand, Ripple has long positioned itself as something different from XRP Coin.
