XRP, the digital asset associated with Ripple, has been a topic of discussion lately due to its potential utility in the global payments space. A recent analysis by a crypto market expert has shed light on XRP’s prospects if Ripple were to capture 14% of SWIFT’s total annual cross-border transaction volume. The expert, known as Crypto Eri, has detailed how this scenario could impact XRP’s supply and daily transactions.
According to Crypto Eri’s calculations, if Ripple were to process 14% of SWIFT’s total annual volume, which amounts to around $4.2 trillion, it would require only a small portion of XRP’s total supply to support the transactions. The analyst assumed a conservative scenario where each XRP token is used once every three minutes, reflecting potential liquidity management constraints in real-world applications.
Based on these assumptions, Crypto Eri estimated that one XRP token, priced at $2.15, could facilitate $1,032 worth of transactions per day. To handle the projected $11.5 billion daily volume, approximately 11.15 million XRP tokens would be needed. This represents just 0.0190% of XRP’s circulating supply, highlighting the token’s high velocity and reusability as an efficient bridge asset.
The analysis model presented by Crypto Eri has sparked interest in XRP’s utility among the crypto community, with several independent researchers validating her projections. The potential for XRP to play a significant role in global payments has become a focal point of discussion, especially as Ripple continues to explore partnerships and use cases in the financial industry.
In addition to XRP’s utility, Crypto Eri also delved into the token burn rate estimates for a trillion-dollar use case. The analyst estimated that only 5,000 XRP tokens would be permanently burned through transaction fees to facilitate a $5 trillion annual transaction volume. This minimal burn rate showcases the scalability and efficiency of XRP as a digital asset for large-scale transactions.
Overall, the analysis by Crypto Eri underscores the potential of XRP as a key player in the global payments landscape, especially if Ripple secures a significant portion of SWIFT’s market share. As discussions around XRP’s utility and scalability continue, the digital asset remains a topic of interest for investors and industry experts alike.