If XRP captures a small portion of SWIFT’s trading volume, its price could rise significantly, potentially reaching $100. Widespread adoption and regulatory clarity remain key challenges for XRP to match SWIFT’s global dominance.
As previously reported by CNF, the XRP Ledger (XRPL) is showing significant utility in the payments space, in line with the development in which Ripple has enhanced the XRP Ledger (XRPL) with the launch of a new Batch Devnet server. The attractive features of XRP’s underlying blockchain contribute to its reliability.
According to the Financial Crimes Enforcement Network (FinCEN), SWIFT processes over $5 trillion in transactions every day, amounting to approximately $1.25 trillion annually. In a recent tweet, Crypto Crusaders revealed that due to this SWIFT news, XRP will reach $60 overnight. This is mathematics!
$XRP Reach $60 in one night with this quick news! This is mathematics!! pic.twitter.com/lbQPeSVD3j
— Levi | Crypt Crusaders (@LeviRietveld) October 9, 2024
Analysts say XRP should be trading at much higher levels, raising concerns about possible price suppression. One key opportunity lies in the potential for XRP to capture a portion of the payment volumes processed by SWIFT. Replacing just a fraction of this amount could significantly increase the demand and market capitalization of XRP.
For XRP to rival SWIFT, it will need to achieve widespread adoption among global financial institutions. XRPL boasts faster, cheaper transactions, processing payments in 3-5 seconds with minimal fees, but SWIFT’s established network of over 11,000 institutions and decades of trust means there are no major hurdles. It becomes. Ripple’s existing partnerships leveraging XRPL show progress, but it will take time to match SWIFT’s vast reach.
Challenges and future prospects
One of XRP’s biggest challenges remains regulatory clarity, with its ongoing legal battle with the SEC hindering adoption, particularly in the US. However, if the lawsuit concludes without an appeal, confidence in the market price of XRP will increase and the path could be paved for wider acceptance by financial institutions.
In terms of scalability, XRPL needs to handle huge transaction volumes to compete with SWIFT, which processes trillions of transactions every day. Ripple’s on-demand liquidity (ODL) service aims to address liquidity needs, but further improvements are needed for XRP to compete with SWIFT.
Financial analysts estimate that if XRP captures even 5% to 10% of SWIFT’s trading volume, its market cap could rise to $10 trillion and the token price could reach more than $100. However, major challenges remain, such as financial institutions trusting XRP as a safe and stable alternative to SWIFT.
At the moment, Ripple (XRP) is trading at $0.5298, down 1.14% over the past day and 2.15% over the past week.
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