XRP To Skyrocket To $500 Within 7 Months, Predicts Wells Fargo Treasury Manager
31 July 2023 - 6:00PM
NEWSBTC
In a recent statement, Wells Fargo’s Treasury Management officer
Shannon Thorp provided an eye-catching price prediction for XRP.
The forward-thinking executive anticipates a potential surge in
XRP’s value to anywhere between $100 and $500 in the short term,
specifically within the next 4 to 7 months. This price hike
prediction represents an astounding 14,200 % to 71,400% increase
from the current trading value. Finding The Right Best Model Thorp
acknowledges the longstanding debate within the XRP community,
where one faction relies solely on chart patterns and trends
exhibited by Bitcoin to draw short-term price predictions. On the
other hand, another group emphasizes the significance of XRP’s
utility, believing that its partnerships and the replacement of
antiquated systems will be the key drivers of its price. However,
Thorp presents a novel perspective, emphasizing that XRP is NOT a
security and basing price forecasts on traditional securities logic
is counterintuitive to the original vision set forth by the Ripple
team. Related Reading: This Machine Learning Tool Was Asked To
Predict XRP Price, Here’s What It Said Expanding on her rationale,
Thorp introduces the concept of Liquidity Strength (LS) as a
pivotal metric to consider when predicting XRP’s future value. To
ascertain a price range for the token, she takes into account the
total supply, including circulating tokens, burnt tokens, those
owned by banks, governments, and individuals, and assumes that
Ripple has released all their XRP from escrow. According to Thorp,
if one company were to possess all 100 billion tokens, their
Liquidity Strength (LS) in a price range of $1.00 to $5.00 would
amount to $100 billion to $500 billion. However, she argues that
such a calculation fails to consider the potential growth in the
economy, messaging and settling activities, and the continuous
benefits derived from using XRP. Drawing on real-world examples,
Thorp compares the token’s potential to that of SWIFT, which
handles approximately 44.8 million messages per day. Even if Ripple
could capture only 30% of SWIFT’s daily value, which she
approximates at $7 trillion, it would result in a staggering $2.1
trillion in daily value (roughly 13.2 million messages) for XRP.
Considering XRP’s quick settlement time of 1 to 5 seconds, the
liquidity would indeed be present. However, Thorp highlights the
challenge of conducting large transactions with limited Liquidity
Strength, as it may require a significant portion of a bank’s XRP
holdings. XRP Price Prediction To arrive at her price prediction,
Thorp factors in various elements such as all global banks, burnt
XRP, individual holdings, XRP distributed to large banks and
creators, and tokens available on liquidity hubs and exchanges. She
estimates that at any given time, there may be 50 to 75 billion XRP
supporting Liquidity Strength (LS). When distributed across
approximately 300 to 1000 different banks, liquidity providers, and
governments, this would yield around $75 million XRP/dollars for
each institution. Taking into account J.P. Morgan as a top-tier
bank with a daily transaction volume exceeding $8 trillion, Thorp
postulates that even if Ripple captured only 10% of this market,
which amounts to $800 billion, the existing 75 billion XRP in
circulation would not suffice to move such massive sums
efficiently. Thorp acknowledges that this estimation solely
pertains to cross-border transactions and does not encompass
derivatives, real estate, CBDCs, technical parallels, and NFTs.
Related Reading: Traders’ Interest In XRP Remains Solid Despite
Price Retreat, Data Shows With the groundwork laid, Thorp makes her
price prediction, projecting XRP’s price range to be anywhere from
$100 to $500 in the near short term (4 – 7 months). Her calculation
is based on the Liquidity Strength (LS) scenario, where a XRP price
of $100 with a supply of 50 billion XRP would yield an LS of $5
trillion, while $500 would result in an LS of $25 trillion.
According to Thorp, this valuation gives the market breathing room,
allows for growth, and assures that no single entity needs to hold
billions of XRP to operate daily. Furthermore, Thorp believes that
a potential “flip of the switch” moment could trigger this price
surge – an event akin to a re-evaluation for XRP, similar to how
gold is assessed. Notably, Thorp’s speculation sets an exciting
stage for the future of XRP, albeit it is important to remember
that her prediction is based on several assumptions that may or may
not actualize. As always, those interested in investing should
conduct their due diligence, consider multiple perspectives, and
make informed decisions. At press time, the XRP price was at
$0.7074. Featured image from iStock, chart from TradingView.com
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