Billionaires will buy this cryptocurrency that could rise 23,900% according to asset manager Jake Claver
Ripple's cross-border payment system is gaining momentum these days. That's good news for Ripple investors XRP(CRYPTO:XRP) token, which could soar to new heights if the closely related payment network really takes off.
After an extended period of very low trading volume, followed by volatile action amid recent courtroom victories, XRP's average market volume has settled at an all-time high. 24-hour trading volume is $1.7 billion as of Monday afternoon, October 21, up from daily volumes of just $500,000,000 in summer 2023.
That's more than 5% of XRP's tokens change hands every day. By comparison, even volatile stocks rarely cross the 5% mark, and active volume for calm-valued stocks is often measured in fractions of a percentage point.
Traditional investors are also paying attention. For example, asset manager and online influencer Jake Claver compares XRP and Ripple Amazon.com(NASDAQ: AMZN). Amazon legitimized the idea of e-commerce in the 1990s and turned many early investors into millionaires. Likewise, Ripple appears poised to disrupt the international financial system with game-changing results for early token holders.
Claver envisions a world where Ripple one day controls the lion's share of international payments – and also takes over other money transfer payment systems such as the stock market. In that world, the system could handle as much as $6.6 trillion in daily payment volumes and the XRP token would need to be worth around $132 for that vision to work. That would be a staggering 23,900% above the current XRP price, which stops at $0.55 per token.
This price target is of course quite extreme. Claver presented it as a theoretical thought experiment, not a fixed price target. However, how realistic is the suggested target of $132?
All types of international money transfers involved $160 billion in settlement costs last year. Market analysts such as the firm Brainy Insights do not even consider Ripple's modest piece of the puzzle and focus their reports on traditional systems such as Western Union, Visaand the overseas banking network SWIFT.
So there is a significant amount of money to be made, but it will take time to build a serious market presence here. And this relatively attainable capability is just a sliver of the trillion-dollar trading volumes that Claver envisioned across a broader transaction network. So the price target of $132 is not very realistic, at least not in the near future.
Still, Claver's view probably points in the right direction, and for many good reasons.
In recent videos and social media posts, the asset manager highlighted the following catalysts for a higher XRP price:
Several financial giants are completing the paperwork to create exchange-traded funds (ETFs) based on the real-time spot price of XRP. Similar funds were approved Bitcoin And Ethereum injected billions of dollars of old-fashioned capital into these crypto leaders earlier this year. ETF liquidity could yield much bigger gains in XRP given the smaller scale of this cryptocurrency today. This is where the billionaires will enter the XRP market in a big way.
The Securities and Exchange Commission's (SEC) long-running lawsuit against Ripple Labs is not over yet, but should come to fruition in the coming years. The first few rulings have largely sided with Ripple, resulting in fines well below the $1 billion payouts the SEC had requested. Putting that legal saga to bed should increase XRP's real utility and token price.
Ripple Labs is a private company, but Claver argues it could use a stock sale to raise corporate capital and legitimize its XRP-based payment system. Here he compares Ripple to Amazon, with potentially sky-high investor returns in the long term. A publicly traded version of Ripple would offer deeper opportunities for acquisitions and exploration, perhaps setting the stage for an Amazon-style business empire across sectors and industries.
Moreover, the Ripple organization is currently investing heavily in the payment platform's infrastructure. The system had approximately 400 automated market markers (AMMs) in the spring of 2024. The number of automated liquidity managers doubled to 900 AMMs in early October – and doubled again last week to more than 2,500.
I would be shocked to see XRP tokens at $132 soon. At the same time, the Ripple organization has a lot of helpful balls in the air and the token looks undervalued today.
Claver's ultra-bullish analysis underscored my investment thesis, even if I disagree with his long-term target price. XRP looks like a solid buy, and I'm happy to settle for a return well below 23,900%.
Before purchasing shares of XRP, consider the following:
The Motley Fool stock advisor The analyst team has just identified what they think is the 10 best stocks for investors to buy now… and XRP wasn't one of them. The ten stocks that survived the cut could deliver monster returns in the coming years.
Think about when Nvidia made this list on April 15, 2005… if you had $1,000 invested at the time of our recommendation, you would have $880,670!*
Stock Advisor provides investors with an easy-to-follow blueprint for success, including portfolio building guidance, regular analyst updates, and two new stock picks per month. TheStock Advisoris on duty more than quadrupled the return of the S&P 500 since 2002*.
View the 10 stocks »
*Stock Advisor returns October 21, 2024
John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Anders Bylund has positions in Amazon, Bitcoin, Ethereum and XRP. The Motley Fool has positions in and recommends Amazon, Bitcoin, Ethereum, Visa, and XRP. The Motley Fool has a disclosure policy.
Prediction: Billionaires Will Buy This Cryptocurrency That Could Surge 23,900%, According to Asset Manager Jake Claver, originally published by The Motley Fool
This website uses cookies so that we can provide you with the best user experience possible. Cookie information is stored in your browser and performs functions such as recognising you when you return to our website and helping our team to understand which sections of the website you find most interesting and useful.
Strictly Necessary Cookies
Strictly Necessary Cookie should be enabled at all times so that we can save your preferences for cookie settings.
If you disable this cookie, we will not be able to save your preferences. This means that every time you visit this website you will need to enable or disable cookies again.