Wells Fargo’s Treasury Management official Shannon Thorp has raised eyebrows with her prediction that XRP’s value could skyrocket to between $100 and $500 within just 4 to 7 months. This unexpected valuation represents an incredible 14,200 % to 71,400% increase compared to the current trading value.
Thorp’s decisive prediction brings a fresh approach to the ongoing debate within the XRP community. While some prefer to follow Bitcoin’s chart patterns and trends for short-term price guidance, Thorp believes that traditional securities logic is not relevant to XRP as it isn’t a security. Instead, she introduces the concept of Liquidity Strength (LS) as a key determinant for XRP’s future price, taking into account its total supply and its capacity for adoption.
Drawing parallels to SWIFT’s transaction volumes, Thorp envisions that if XRP could manage to secure even 30% of SWIFT’s daily transfers, estimated at $7 trillion, the daily value for XRP could reach an impressive $2.1 trillion. Although XRP’s quick settlement time supports significant liquidity, Thorp acknowledges that conducting larger transactions with limited LS could present a big challenge.
Thorp’s prediction considers variables like global banks, burnt XRP, individual holdings, bank-distributed XRP and available tokens on liquidity hubs and exchanges. She indicates that the estimated 50 to 75 billion XRP may not sufficiently serve large transactions, especially mid to top-tier banks like J.P. Morgan oversaw daily transactions exceeding $8 trillion.
With all items taken into consideration, Thorp arrives at her conclusion that XRP’s price could range from $100 to $500 within the next 4 to 7 months. This calculation is based on the liquidity strength model, suggesting a price of $100 with a supply of 50 billion XRP would yield a LS of $5 trillion, jumping to $25 trillion for a price of $500.