$XRP

Crypto Tank's comments in the XRP community have reignited the discussion about whether XRP can reach $1,000. To explore the rationality of this idea, we must first examine the current state of the global financial system, especially the role of SWIFT in cross-border transactions. SWIFT processes a huge amount of transaction information every day, with a total volume of between $5 trillion and $7 trillion, but its function is limited to messaging. The actual settlement of funds still relies on other systems such as TARGET2 or FEDWIRE, which are often time-consuming and costly. Each transaction fee can reach $20 to $50 and takes several days to complete.

In contrast, RippleNet and its integrated XRP provide a solution that can greatly improve transaction efficiency and reduce costs. The entire transaction process can be completed in a few seconds, which is expected to save banks hundreds of billions of dollars in fees each year. This cost advantage will drive financial institutions to turn to XRP once they realize this potential economic benefit.

Assuming that 10% of SWIFT's daily transaction volume is settled in XRP, this would involve a daily transaction volume of approximately $500 billion. Considering that large financial institutions such as JPMorgan Chase have even larger daily transaction volumes, XRP's small application in these institutions can also bring huge potential.

However, in order to effectively use XRP in bank transactions, a deep liquidity pool needs to be built to ensure smooth transactions. The liquidity pool on the XRP Ledger (XRPL) enables seamless conversion between multiple currencies, but to support such high-value transactions, such as the transfer of $500 billion in value, theoretically about $1 trillion in assets are required in the liquidity pool.

Given that the circulating supply of XRP is approximately 56 billion tokens, but Ripple holds approximately 39 billion of them, and many tokens are held by retail investors, large investors, and financial institutions, the actual circulation available for transactions may be relatively limited. If it is assumed that 10 billion XRP are allocated to the liquidity pool, in order to support the liquidity demand of 1 trillion US dollars, the value of each XRP will need to reach about 100 US dollars. As more financial institutions join and adopt XRP, its value is likely to increase further, and in theory there is the possibility of moving towards 1,000 US dollars.