One analyst now claims that XRP will rise to $1000 based on several factors, one of which includes the adoption of the cryptocurrency by institutional investors.
Recent comments from Crypto Tank, a prominent figure in the #XRP community, have reignited the discussion about the possibility of XRP rising to $BTC Crypto Tank argues that those who are skeptical of this price target may not be fully appreciating the tremendous benefits that XRP could bring, especially within the global financial system.
In order to understand how XRP can achieve such a phenomenal valuation, it is necessary to analyze the current global financial system and the benefits of XRP's inclusion. The SWIFT system, which facilitates cross-border transactions, processes $5 trillion to $7 trillion worth of messages every day.
However, SWIFT only processes transaction messages, while actual settlement takes place through systems such as TARGET2 in the EU and FEDWIRE in the U. S. The current SWIFT model faces serious challenges, especially in terms of speed and cost. Each transaction message costs between $20 and $50, and settlement often takes days.
In contrast, RippleNet integration can streamline the entire transaction process, including messaging and settlement, in just seconds and at a much lower cost.
This transition could save banks hundreds of billions of dollars in fees each year.
Crypto Tank believes that as financial institutions realize the significant savings that XRP offers, they will be more incentivized to make the switch.
If 10% of SWIFT's daily transaction volume were to be transacted in XRP, that would be about $500 billion per day.
In addition, major financial institutions such as JP Morgan, Bank of America and SBI conduct about $1 trillion worth of transactions every day, indicating great potential if XRP takes even a small share of these transactions.
In order for banks to effectively utilize XRP, they need a robust liquidity pool to ensure transactions run smoothly.
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