Edward Farina, the Head of Social Adoption at XRP Healthcare, has put forward a compelling scenario envisioning XRP surging to $10,000. This projection is grounded in the potential for XRP to function as a bridge currency, with RippleNet potentially supplanting SWIFT (Society for Worldwide Interbank Financial Telecommunication) in global cross-border payment systems.
Can XRP realistically attain a $10,000 price point?
Farina delves into market dynamics, challenging prevalent misconceptions about the cryptocurrency’s growth potential. He emphasizes the fundamental principle of supply and demand, stating, “Few people seem to understand the principle of supply and demand. I always see people being shocked when they see someone saying that XRP can reach $10k. (Not saying it necessarily will.)”
Farina argues that the vast movement of hundreds of trillions of dollars in the global financial sector annually implies that even a marginal market share for XRP could trigger a substantial surge in its valuation. He also critiques the current capabilities of the SWIFT system, highlighting its handling of billions of transactions per hour, and speculates on the impact of RippleNet potentially displacing it.
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“The problem with the way most people view XRP’s potential to grow exponentially is that they think it can’t reach that high of a market cap. They’re failing to realize that Financial Institutions move hundreds of trillions worldwide. If XRP captures a tiny fraction of that, it will catapult XRP to unprecedented levels,” Farina explains.
This underscores the expansive, untapped market that XRP could infiltrate. However, specific figures and the amount of capital required to propel XRP to $10,000 are not provided by Farina.
In addition, Farina highlights XRP’s purported technological superiority, particularly in terms of transaction speed and finality. He asserts, “XRP settles value in real-time (an average of 3 seconds) and with finality. BTC cannot do that, neither ETH nor SWIFT. Period,” making a case for the efficiency and reliability of XRP over existing systems.
related: XRP’s European Debut: Explosive Exchange Product Launch in December 2023.
The discourse on whether XRP can attain a four- or five-digit price if Ripple replaces or partially replaces SWIFT has persisted for some time. Recently, Crypto Eri uncovered a five-year-old statement from Ripple CTO David Schwartz, affirming the positive correlation between an asset’s price and liquidity.
“Higher prices tend to correlate with higher liquidity, which means cheaper payments,” Schwartz noted, suggesting that as the value of XRP increases, it becomes a more viable medium for large-scale financial transfers. This aligns with Farina’s vision of XRP disrupting current financial systems.
Grayscale has also acknowledged XRP’s potential to rival SWIFT. In its latest “Currencies Crypto Sector” report, the company asserts, “Beyond Bitcoin, XRP is the second largest asset. Designed as an alternative to SWIFT, XRP aims to offer fast cross-border payments at lower transaction costs than competitors.”
As of the latest update, XRP is trading at $0.6208.