Financial expert Shannon Thorp believes XRP at $500 is conservative, given the projected $250 trillion value of cross-border payments by 2027.
In a recent tweet, financial expert Shannon Thorp expressed that the projection of XRP to trade at $500 per token is conservative. Thorp expressed the sentiment in response to a recent report from Ripple that captured the projected value of cross-border payments in the next four years.
Specifically, Ripple’s 2023 New Value Report stated that over $250 trillion will be transacted in cross-border payments by 2027. Thorp believes that if XRP were to facilitate such a volume of payments, then the price of XRP would need to be much higher than $500.
“A $500 XRP price just doesn’t seem like enough to facilitate that amount,” the financial expert remarked.
From the 2023 New Value Report by #Ripple
$250T is expected by 2027 just in cross-border payments!
— Shannon Thorp (@thorpshannon87) September 11, 2023
Interestingly, Thorp’s view may stem from the fact that the total supply of XRP is 100 billion tokens. $250 trillion transacted in XRP may imply each token is worth an average of $2,500. This estimate assumes that all XRP tokens are in circulation.
However, it is worth clarifying that the projected $250 trillion is for the entire cross-border payment landscape, not just for XRP-based transactions. This estimation assumes that XRP would completely dominate the sector, which is unlikely.
Note that, as The Crypto Basic reported, Thorp recently argued that the value of XRP does not rest merely on utility. She contended that XRP’s bullish potential lies in its position in the economic proposition of institutions like the International Monetary Fund and the World Bank.
Cross-Border Sector Expected to Hit $250T by 2027
It is worth mentioning that Ripple got the $250 Trillion estimate from a study from the Bank of England (BoE). The report emphasized why cross-border payments hold significant economic importance.
The Bank highlighted that the surge in global mobility of goods, services, capital, and people over the past few decades has contributed to the exponential growth of cross-border payments.
BoE projected that the payments, valued at approximately $150 trillion in 2017, could soar to over $250 trillion by 2027. It identified several key factors intensifying cross-border payments in recent years.
It included the increasing prominence of cross-border asset management and the continuous flow of global investments.
Additionally, the BoE cited that the growing number of migrants sending money through international remittances has played a crucial role in amplifying the economic importance of cross-border payments.