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Wells Fargo Analyst Predicts Ripple XRP Price Could Rise to $500

2 mins
Updated by Geraint Price
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In Brief

  • Wells Fargo specialist Shannon Thorpe predicts Ripple XRP price could range between $100-$500 in 4-7 months.
  • Thorpe suggests that if Ripple wins 30% of SWIFT's daily transactions, XRP's daily use could rise to $2.1 trillion.
  • If XRP reaches $500, the asset's liquidity could rise to $25 trillion, surpassing JPMorgan’s daily SWIFT volume.
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Wells Fargo’s Shannon Thorp offers an unusual XRP forecast, given a sufficiently liquid market.

She predicted that XRP’s price could vary between $100 and $500 in four to seven months. This price action would net investors between 14,200% – 71,400% profit based on the current XRP price.

If XRP Is Not Liquid, It Can’t Compare With SWIFT

Thorp argued that current prediction models for XRP are flawed because they do not consider external economic conditions when making predictions about the wider adoption that could drive XRP’s price.

Thorp said that a comparison with the international settlement system, SWIFT, offers a sobering window into the potential of XRP. Assuming Ripple wins 30% of the $7 trillion SWIFT processes daily, its everyday use would spike to $2.1 trillion.

XRP forecast would skyrocket its market cap to $25 trillion, but it needs to be more liquid.
XRP market cap is $36 billion | Source: CoinMarketCap

However, banks would not have sufficient liquidity strength for large transactions if they held one billion XRP worth $1 apiece. Additionally, they would not want to spend a large percentage of their liquidity on a single customer.

How Did Thorpe Arrive at the XRP Forecast?

To make her prediction, Thorp focused on the price XRP would need to reach to ensure sufficient liquidity and breathing room in the market.

She considered global banks, crypto exchange assets, burned XRP, as well as tokens given to banks, developers, and individual investors.

In her estimation, between 50 and 75 billion XRP may be available for liquidity. Assuming 300 to 1,000 banks hold XRP, each firm would need about 75 million XRP.

However, this allocation would be insufficient to absorb even 10% of JPMorgan’s SWIFT volumes. The bank processes $8 trillion daily without considering real estate, derivatives, central bank digital currencies, and other tokenized assets.

Are you considering buying XRP? Read our complete guide here.

On the other hand, if the asset reaches $100 to $500 in the next four to seven months comes true, its liquidity strength could surge to between $5 trillion and $25 trillion, assuming a minimum token supply of 50 billion. This would give the market room to breathe, allow the asset to grow, and ensure no single entity needs to hold billions of assets.

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Top crypto platforms in the US | March 2024

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David Thomas
David Thomas graduated from the University of Kwa-Zulu Natal in Durban, South Africa, with an Honors degree in electronic engineering. He worked as an engineer for eight years, developing software for industrial processes at South African automation specialist Autotronix (Pty) Ltd., mining control systems for AngloGold Ashanti, and consumer products at Inhep Digital Security, a domestic security company wholly owned by Swedish conglomerate Assa Abloy. He has experience writing software in C,...
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