XRP could soon skip if it has 10% of the SWIFT market
The Ripple blockchain protocol could help different financial institutions to improve efficiency and reduce costs. However, the most important system used today to move funds around the world is SWIFT.
At the moment, SWIFT has over 200 countries on its network. But Ripple is now the biggest competitor of SWIFT. Ripple offers cross-border transactional solutions in a much more efficient way. Ripple's services are adopted by various banks and institutions around the world. However, if Ripple is able to obtain between 5% and 10% of the SWIFT business the price of XRPs could increase significantly.
The XRP price is currently $ 0.26 dollars and has moved over $ 190 million in 24 hours. SWIFT has a volume of $ 1.25 quadrillion dollars or $ 4 trillion dollars a day. But if XRP manages this volume, its price would certainly rise to the stars.
Over the past 5 years, XRP has had an average fluctuation of 7.25% per day and $ 191 in trading volume. If Ripple is able to get only 1% of SWIFT's business, XRP trading volume would be close to $ 50 billion a day and the cryptocurrency would have a price of $ 5.57 dollars.
If Ripple is able to acquire a larger market share, the famous virtual currency could be traded for over $ 50 dollars. The number could be even higher if Ripple grows at higher rates.
However, there are some banks that are using other virtual currencies to operate for sending and receiving funds in different countries. For example, an Argentinean bank sends and receives funds from abroad using Bitcoin (BTC). Ripple is not the only competitor on the market. There are several companies that are looking to improve their market presence and offer similar services like SWIFT. It's just a matter of time to see what will happen with XRP.
At the time of writing, XRP is the third most important virtual currency in the market with a market cap of $ 10.39 billion. In addition, each token can be purchased for $ 0.26 dollars.