Ripple’s XRP has experienced a decline in price since reaching $0.93 after a court ruling. The uncertainty created by reports of the US Securities and Exchange Commission filing a motion for interlocutory appeal has led to many investors considering exiting their XRP positions. At the time of writing, XRP’s price had broken a crucial support level and dropped to $0.474726. However, financial expert Shannon Thorp has surprised the XRP community with her statement that a price of $500 for XRP is undervalued. She believes that the projected value of $250 trillion in cross-border transactions by 2027 will push the price of XRP to unimaginable heights.
Thorp predicts a significant surge in the value of XRP, stating that it is currently undervalued. She points to Ripple’s 2023 New Value Report and the Bank of England’s report on cross-border payments as the basis for her statement. According to the reports, the volume of cross-border payments is estimated to reach $250 trillion by 2027. If XRP facilitates a significant portion of these transactions, a price of $500 would be much lower than what the asset deserves.
Thorp goes on to explain that her prediction of XRP hitting $500 may seem outrageous to some. However, she argues that this price is actually conservative when considering the projected volume of cross-border payments. Taking into account XRP’s total supply of $100 billion, each coin could be worth an average of $2,500 when $250 trillion is transacted in XRP.
A review of the Bank of England’s report reveals that the estimated $250 trillion value of cross-border payments is a result of factors such as the expansion of the supply chain across borders, intensified international trade and e-commerce, increased cross-border asset management and global investment flow, and the rise in international remittances by migrants. These trends have fueled the demand for efficient and safe cross-border payment services. The Bank of England predicts a significant surge from $150 trillion in 2017 to $250 trillion in 2027, representing a $100 trillion increase over a 10-year period.
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Thorp argues that XRP should not be linked to Bitcoin based on utility. While Bitcoin relies on speculative value, XRP stands to benefit from its partnerships with prominent financial organizations, which promote financial stability. Despite experiencing a decline of 5 percent in the last seven days and 3.8 percent in the last 24 hours, XRP’s potential to revolutionize cross-border payments makes it a valuable asset.
In conclusion, Shannon Thorp believes that XRP’s current price of $500 is undervalued given the projected $250 trillion value of cross-border payments by 2027. She argues that if XRP plays a significant role in facilitating these transactions, it could reach a much higher price point. The Bank of England’s report on cross-border payments supports this prediction, highlighting the factors driving the increase in cross-border transactions. While XRP may have experienced a decline in price recently, its partnerships and potential for disruption in the cross-border payment sector make it an asset with tremendous potential.
