TLDR
- XRP could see a major price increase if it captures 25% of global cross-border liquidity.
- The estimated cross-border liquidity held by banks is around $10 trillion.
- Analysts predict the XRP could reach up to $42.50 if it backs $2.5 trillion in flows.
- XRP’s token velocity impacts how much capital is required to support cross-border transactions.
- If XRP is reused five times a year, the price could be around $8.50.
XRP’s rising use in cross-border payments could drive major growth. If it captures 25% of global cross-border liquidity, the XRP price may rise significantly. Analysts are examining how token velocity and market share affect its future valuation.
XRP Faces Resistance but Maintains Utility-driven Potential
Despite investor optimism, XRP has repeatedly failed to break past the $3 resistance over the last five months. Yet, due to its strong position in international payments, many expect it to eventually outperform. XRP’s real strength lies in its ability to facilitate fast, low-cost cross-border transfers.
Financial institutions are showing increasing interest in blockchain-based liquidity solutions, including XRP. Because of that, the asset’s long-term price outlook remains tied to adoption levels. If XRP becomes widely adopted for international payments, it could unlock unprecedented market value.
Liquidity Estimates Suggest Significant Upside for XRP Price
In April 2025, macro analyst Marty Party reported that M2 money supply in four major economies totalled $83.37 trillion. According to BIS data, only 10% to 15% of that is used for cross-border claims, totalling around $8 trillion to $12 trillion. Taking a midpoint estimate, XRP could compete for a $10 trillion market.
Global Liquidity 4pm April 11th
This is only US China Japan and EU = $83.37t
China is now $44t thats global currency dominance ratio 53%China has 53% of Global Liquidity.
Where is the Fed? pic.twitter.com/Bj5Ds2ScgM
— MartyParty (@martypartymusic) April 11, 2025
If XRP captured 25% of that $10 trillion market, the total value handled would reach $2.5 trillion. With a circulating supply of 58.82 billion tokens, the XRP price could rise sharply. Assuming full coverage, that would push the XRP price to about $42.50.
Token Velocity Lowers Capital Requirement, Influences XRP Price
However, due to its token velocity, XRP does not need to hold the entire $2.5 trillion at once. If each token circulates five times annually, only $500 billion in locked value would be required. In that scenario, the XRP price would land near $8.50.
Should the velocity increase to 10, XRP would drop to around $4.25. If it moved only twice a year, XRP would reach approximately $21.25. The faster the turnover, the lower the capital XRP must hold to support the system.
XRP price predictions vary based on velocity and actual usage by banks and institutions. However, all models show that wider adoption can significantly lift the XRP. Its real-world utility gives it a stronger case than speculative assets with no payment role.
Continued adoption by financial institutions is crucial for XRP growth. While the market faces resistance, utility-driven demand remains strong. With increasing transaction volumes and support from financial partners, the price of XRP could reflect its rising global use.
