There is a lot of excitement around Ripple (XRP) right now. With the current high level of Ripple (XRP) use, experts believe that this crypto can emerge as the top crypto in years. Of all the many predictions that have been made about Ripple, I have found one that may look outrageous, but it really makes math sense. According to this prediction, Ripple will be worth about $334 in about 3 years.
Before you think that this judgment makes no sense, let’s solve it, then you will realize that there is a good chance that this analysis may not be logical because it may seem at first glance.
The first analysis looks at the market sphere that ripple (XRP) is looking to interrupt. Ripple intends to solve the problem of costs and delays experienced by banks in foreign exchange transactions, when using the SWIFT system. This is a 24 trillion market and Ripple can help cut up to 40% of this market. Now, given that the ripples will make money through transaction fees that are paid forever by the banking system, only a small share of this market will give Ripple a big fundamental boost.
According to a ripple prediction of $334, if Ripple earns just 10% of this $24 trillion, and makes about 10% in cost, this amount is $334 per XRP when working backwards, using the net present value method. So is this sustainable? The mathematics around this is true. Actually, based on the same line of thinking, one can conclude that Ripple will be worth far more in the future. That’s because Ripple is almost certain to capture a higher way of 10% of the global banking industry. In fact, if Ripple can save up to 40% in forex fees, no bank wants to miss it. Being left behind means losing clients from other banks, and that’s an expensive mistake the bank can not make.
Second, the $334 analysis also uses the assumption that Ripple will never burn coins. However, in reality, Ripple intends to burn coins per transaction in the long run. Thus, the more banks adopt Ripple, the lower the number of XRPs that will circulate into the future. A lower number of Ripple coins when combined with a $24 trillion market share will easily see Ripple (XRP) surpass $334. In fact, if Ripple is to be adopted by the entire global banking sector, it could lead to the burning of big coins which could easily carry Ripple to over $500.
The $334 ripple analyst also argues that once the financial system starts using ripple enmasse, the exchange will also start hoarding to Ripple, due to the soaring volume. This makes sense because as demand grows, the exchange will naturally hold more Ripples thereby boosting demand. Ripple will also be added to more exchanges, thus opening up new demand avenues for Ripple XRP.