Everyone saying 1k XRP is a fantasy doesn't understand how the utility of XRP will drive price to unbelievable levels. Just to give you an idea of how high XRP will need to be I'll give you some examples...
Swift does approx $5-7 trillion in daily volume....
J.P. Morgan does approx $9-10 trillion daily...
B of A does approx $6-8 trillion daily...
SBI does approx $2-3 trillion daily...
Lets just take Swift alone. Swift is adopting RippleNet currently into their messaging system for cross border payments. Swift ONLY handles
messaging of the transactions NOT the actual settlement of the $. In the EU the settlement goes through TARGET2 system. In the US it goes through FEDWIRE. With RippleNet the entire process can be messaged and settled through XRP in 3-5 seconds and a fraction of the cost.
Currently the cost of a Swift messaging transaction is $20-50 versus pennies with XRP. So banks will be greatly incentivised to adopt RippleNet using XRP to save hundreds of billions in fees per year. Now lets say banks settle just 10% of transactions to start with XRP...
10% of Swift's daily volume of transactions is around $500 billion a day. Now remember this is where Deep liquidity pools and RLUSD come into play. These banks will have their own CBDC's and digital tokens. These tokens will be paired to RLUSD on the XRPL.
Say Bank A in New York wants to send $ to Bank B in London. Bank A will take the value of their token/CBDC send it through Swift, Swift will use XRP to send that value to Bank B's token/CBDC on the XRPL, tapping into the Deep liquidity pools that exist on AMM.
To make this possible the value/volume on Ledger in liquidity pools has to be about double the value/volume being transacted daily. Now back to moving just 10% of Swift. That's $500 billion of value/volume on the XRPL which means the liquidity pool to move that has to be
around $1 trillion. This is so there's no friction and ensures that a pathway is always available between different tokens/CBDC's/currencies. Remember Banks Cannot have failed transactions. So if $1 trillion is in the liquidity pool, how do we determine XRP's price?
Well you take the value/volume on ledger($1 trillion) divided by circulating supply of XRP. Current circulating supply is about, if you google it, 56 billion. This number is very misleading. Ripple holds about 44 billion in escrow. Only about 1 billion is still available on
exchanges. Which means the other approx 55 billion circulating supply is being held by retail, whales, banks, institutions, etc. So the real question is how much XRP will be delegated to the AMM liquidity pools? I would guess about 10-20% of that 55 billion. Lets take 10 billion
So divide $1 trillion in value/volume by 10 billion and you get a $100 XRP needed to facilitate that $1 trillion in value. This is why XRP has to be very high to move just 10% of Swifts daily volume. When you start adding the other banks in it gets crazy how high XRP will go
I hope this clears some things up for people with how utility of XRP works and how the price has to be very high to fulfill it's role in the New Financial System...$XRP