- Shannon Thorp, Business Support Manager at Wells Fargo, suggests XRP could ascend to a price between $100 and $500 in the next 4 to 7 months.
- Thorp emphasizes the role of utility in XRP’s potential value, stating that traditional security valuation models are inadequate.
A unique prediction for the future of XRP, a popular digital asset, has emerged from the financial services giant, Wells Fargo. Shannon Thorp, a Business Support Manager at the company, boldly anticipates a substantial rise in XRP’s value within the coming 7 months, placing its future price anywhere between $100 and $500.
People have long asked what will be the price of $XRP, when will this “utility” come? In my opinion, now more than ever I see a divided #XRPArmy! One side looking at only charts, taking cues from the past and trends that follow Bitcoin to draw short term price predictions. Whilst…
— Shannon Thorp (@thorpshannon87) July 29, 2023
Driving Factors Behind XRP’s Potential Leap
Thorp advocates that the conventional methods used for security valuation fall short when applied to XRP, since it is not a security. Rather, the true worth of XRP, she proposes, lies in its utility and application in the real world.
A key feature of XRP that Thorp underscores is its ability to handle a volume of messages double that of SWIFT, the current frontrunner in cross-border payments. Coupled with a markedly swifter settlement time than SWIFT, XRP presents itself as a highly efficient solution for cross-border transactions.
To further demonstrate XRP’s potential value, Thorp performed a liquidity strength calculation. By presuming a circulating supply of XRP in the region of 50 to 75 billion, divided among 300 to 1000 various banks, liquidity providers, and governments, she deduced a significant liquidity strength for each bank or provider. Assuming 75 billion XRP in circulation, dispersed amongst 1000 banks, each would yield a liquidity strength of approximately $75 million. This would ensure that every institution could process a substantial number of XRP transactions without liquidity concerns.
Thorp further projected that even a minor capture of the cross-border payments market by XRP would necessitate a substantial price increase. As per her calculations, achieving a market share of 10% would require XRP to be valued at a minimum of $100, while capturing 50% of the market would require a valuation of at least $500 per XRP.
While Thorp’s prediction stands on several suppositions, her distinctive viewpoint provides invaluable insights into the potential value of XRP. While it remains uncertain whether her prediction will materialize, it certainly offers compelling food for thought for those contemplating an investment in this cryptocurrency.