There is $XRP
The ability to reach higher levels if its increasing utility in cross-border payments allows it to capture a significant portion of the market.
It is worth noting that $XRP has faced repeated hurdles in trying to surpass the $3 mark over the past five months. However, despite the setbacks, including the most recent one, many market participants remain optimistic.
Some analysts believe that the token may be preparing for a significant rise. Interestingly, others think that XRP's increasing utility in cross-border payments could allow the asset to reach much higher price levels.
The potential of $XRP in the expanding cross-border payments market
Specifically, if XRP becomes the preferred solution for transferring money across countries, it could see significant gains. However, the future price of XRP in this scenario still depends on how much liquidity banks and financial institutions are already using for international transfers.
It is worth noting that there are no specific numbers regarding this data. There is a more realistic estimate related to the global money supply (M2), which includes cash, demand deposits, and other liquid assets.
According to a disclosure made in April 2025 by macroeconomic analyst Marty Party, the United States, China, Japan, and the European Union collectively hold about $83.37 trillion in money supply (M2). However, it is important to note that not all of this money is used cross-border.
Historical data from the Bank for International Settlements helps narrow this down. It shows that banks typically hold between 10% and 15% of the global money supply (M2) as reserves and cross-border claims. This means that actual cross-border liquidity likely ranges between $8 trillion and $12 trillion, averaging $10 trillion.
Now, to determine the potential price of Ripple (XRP) if it captured a large portion, say 25% of this figure, we turned to the Open,,AI LLM model Chat,,GPT. At the time of evaluation, Ripple was trading at $2.23, and the circulating supply was 58.82 billion tokens.
The price of Ripple if it captures 25% of the $10 trillion cross-border liquidity
In response, Chat,,GPT divided the estimate into two main approaches. In the first scenario, it assumed that Ripple would need full backing for a value of $2.5 trillion (i.e., 25% of $10 trillion).
Full Value Estimate of XRP | Chat,,GPT
Please note that this means that every dollar flowing through the system must equate to the market value of XRP. Dividing 2.5 trillion dollars by the total supply of tokens, the price of XRP would be around $42.50.
In the second scenario, Chat,,GPT examined how quickly XRP moves through the system, represented as "token velocity."
XRP Trading Velocity Estimate | Chat,,GPT
If every token is reused several times a year, the system will need a lower total value reserved in XRP at any time. For example, at a trading speed of 5, the system would only need $500 billion of XRP to support annual flows of $2.5 trillion. This would raise the token price to around $8.50.
Interestingly, Chat,,GPT also showed other possibilities. For instance, if XRP's trading velocity reached 10, the price would drop to around $4.25. However, if the token were traded only twice a year, the price would rise to $21.25.
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