The XRP price can rise as high as it processes 28% of Swift transactions

Suppose XRP will grow in the next ten years until the Brugvuuta behind a quarter of all international transactions. What does that do with the course? A new analysis shows what happens if the network supports 28 percent of global payment transactions via Swift. The results are impressive.

Ripple-Top says that XRP supplements Swift does not replace

During the XRPL APEX conference, Ripple CEO Brad Garlinghouse gave his vision of the future of the XRP Ledger. He emphasized that XRP is not intended to replace Swift, but to make the international payment system more efficient by delivering liquidity.

Initially, Garlinghouse estimated that the XRP network could support to 14 percent of the Swift volume within five years. But in the longer term, it is now even calculated by 28 percent. That amounts to a transaction volume of 42 trillion dollars a year, or around $ 115 billion a day.

XRP to 175 or 350 dollars? It depends on speed

To be able to support that 28 percent, XRP must provide sufficient liquidity. That strongly depends on how often each token is used annually, the so -called ‘Token Velocity’.

In a scenario in which every XRP token is used four times a year, 10.5 trillion dollars in liquidity are required. Shared by 60 billion tokens, this amounts to a rate of $ 175 per XRP.

If the turnover rate is lower, for example only twice a year, such as in a system with more regulation or longer lead times, the required amount will increase to 21 trillion dollars. Then the XRP course comes out at 350 dollars each.

Both scenarios assume that XRP is the only bridge for those transactions. If the market share of XRP becomes even greater or the offer decreases due to, for example, token burns or long -term storage, the price can even rise further.