Wells Fargo analyst expects Ripple (XRP) at $500
Date: 2023-08-03 Author: Karina Ziganova Categories: BLOCKCHAIN, CRYPTO PAYMENTS
Wells Fargo's Shannon Thorpe made an extremely bold Ripple (XRP) price prediction.
In her opinion, in the next 4-7 months, the price of XRP may come in the range of $100-$500. If Thorp's prediction turns out to be correct, the asset will bring investors from 14,200% to 71,400% in profit.
Ripple should move SWIFT
Thorpe argues that existing XRP forecasting models are flawed because they do not take into account external economic conditions that could lead to an increase in the price of the asset. According to her, comparison with the international settlement system SWIFT gives a better idea of its potential. Assuming that SWIFT processes $7 trillion of transfers daily and Ripple manages to get at least 30% of this market share, XRP transaction volume will grow to $2.1 trillion.
However, if banks hold a billion tokens at the current price, they will not have enough liquidity to make large transfers. In addition, traditional financial institutions are unlikely to want to spend a significant amount of liquidity on a single client.
How Thorpe Came to Predict XRP Price
For her prediction, Thorp focused on the price XRP needs to reach to ensure sufficient liquidity and market freedom.
According to her, to maintain liquidity, the supply of Ripple should be from 50 to 75 billion coins. Assuming 300 to 1,000 banks hold XRP, each firm would need around 75 million tokens.
However, this volume will not be enough to cover even 10% of JPMorgan's SWIFT volumes. The bank processes $8 trillion daily — and that doesn’t include real estate, derivatives, central bank digital currencies (CBDCs) and other tokenized assets.
On the other hand, if in the next 4-7 months the price of XRP reaches $100-$500, and the supply volume is 50 billion, its capitalization will grow to $5-25 trillion. This will allow the asset to grow and eliminate the need to hold a large number of tokens from one entity.
