In a recent post, analyst Future XRP presented his vision of the future valuation of the cryptocurrency XRP, justifying his forecasts with the expected increase in its utility and transaction volumes.
Current Capacity Assessment of XRP
According to current assessments, XRP is priced at $2.20 with a circulating supply of 60 billion tokens. Given an assumed annual velocity of 10, XRP is capable of handling approximately $1.3 trillion annually in on-chain flows.
Projected Institutional Volume
Future XRP references 1,700 non-disclosure agreements that may be tied to potential use cases for XRP. At least 14% of SWIFT's operations, along with portions of the derivatives market and foreign exchange, are expected sources of future transaction volume. The total could represent between $100 trillion and $2 quadrillion.
Price Projection for XRP Based on Volume Increase
According to calculations, this represents a 1,538-fold increase in volume compared to the current on-chain capacity, meaning the price of XRP might need to rise to $3,380. These projections are based on a scaling model that ties price to the transaction volume handled by the network.
Future XRP emphasizes that significant increases in institutional adoption and financial sector integration could have a direct impact on XRP's price. The figures presented are based on assumptions regarding transaction volume growth, supply stability, and velocity remaining constant as the utility expands.
