Here’s How Much XRP Could Skyrocket If It Handles 1% of SWIFT’s Daily Volume

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XRP price could rise to greater heights if the asset complements SWIFT by handling just 1% of the global messaging network’s daily volume.

Discussions around XRP’s possible role in global payments, particularly in relation to SWIFT, the dominant financial messaging network, have dominated crypto circles in recent times.

Could XRP Complement SWIFT?

Several industry experts, including executives from Ripple, have discussed how XRP and the XRP Ledger (XRPL) could either complement or replace SWIFT in cross-border transactions.

For instance, Ripple CEO Brad Garlinghouse stressed at the Paris Fintech Forum 2019 that the goal is not necessarily to eliminate SWIFT but to enhance its efficiency. He acknowledged SWIFT’s Global Payments Innovation (GPI) as a step in the right direction but pointed out that Ripple’s blockchain-based solutions are more efficient.

Also, in a 2018 discussion in Money20/20 USA, Ripple’s CTO, David Schwartz, noted how XRP’s capabilities could reduce reliance on intermediaries. He highlighted the inefficiencies of traditional payments, which are often slow and costly. Besides Ripple’s executives, various analysts have shared similar sentiments.

SWIFT’s Massive Trading Volume

For context, the SWIFT network currently processes a massive volume of transactions daily. As of December 2022, the system handled an average of 44.8 million FIN messages per day, reflecting a 6.6% increase compared to the previous year.

While SWIFT does not publicly disclose the total monetary value of these transactions, historical estimates suggest that the daily sum is substantial. In 2004, SWIFT processed around 10 million messages per day, with each message averaging approximately $500,000 in transaction value, totaling about $5 trillion daily.

Despite the discussion surrounding XRP’s potential to complement SWIFT, it remains uncertain how this would affect its market valuation. To get some pointers, we conducted an analysis using ChatGPT, an AI chatbot, to explore hypothetical scenarios if XRP handles just 1% of SWIFT’s daily transaction volume.

XRP Price if It Handles 1% of SWIFT’s Daily Volume

According to the chatbot’s projections, if XRP facilitated 1% of SWIFT’s estimated $5 trillion daily volume, this would translate to processing $50 billion in transactions per day. To estimate the potential price impact, it used a proportionality approach, comparing XRP’s existing market data to the hypothetical scenario.

At the time of the analysis, XRP traded for $2.08, with a daily trading volume of $2.9 billion. Under the hypothetical scenario where XRP’s daily transaction volume rises to $50 billion, the volume increase factor would be around 17.24 times its current level.

XRP Price if It Handles SWIFT Volume | ChatGPT

ChatGPT then assumed a direct correlation between price and trading volume and estimated the XRP price in this scenario to be around $35.86. Notably, this would mark a 1,624% increase from XRP’s current price, leading to a market cap of over $2 trillion.

However, it is important to note that the assessment’s assumption is a massive oversimplification. In reality, a rise in trading volume would likely not lead to a proportionate increase in price, as much of the volume would also come from selling pressure.

Original Article