Crypto analyst Zain Haider recently sparked a discussion on X, asking XRP enthusiasts to elaborate on how XRP could attain $100.

“What makes you think XRP will reach $100? Partnerships, utility, or market demand?” Haider asked. Among the myriad responses to this question, veteran trader Jay Grissom’s analysis stood out.

Grissom provided a detailed breakdown of the factors that could propel XRP to this significant milestone, focusing on where the money to drive XRP to $100 would come from.

Source of Money To Drive XRP to $100

Grissom highlighted that a key driver for XRP’s potential price surge is the trillions of dollars locked in Nostro/Vostro accounts. He believes these accounts, which banks use to manage cross-border transactions, could shift toward XRP for liquidity solutions. According to Grissom, this transition would significantly boost demand and, consequently, XRP’s price.

Additionally, Grissom pointed out the increasing adoption of XRP by large corporations and financial institutions for international payments. He speculated that the use of XRP in these transactions generates foreign exchange (FX) swaps, a process XRP is well-suited to handle.

In parallel, Grissom noted several advantages XRP offers to banks and financial institutions, including solutions for treasury operations, account management, liquidity, network security, and low transaction fees. He emphasized that Ripple has made it easier for banks to integrate XRP into their payment platforms.

Essentially, XRP’s design facilitates peer-to-peer transactions between financial institutions, providing a more streamlined solution than traditional Nostro/Vostro systems. Moreover, the legal clarity surrounding XRP further incentivizes banks and financial institutions, as it ensures regulatory compliance.

Retail and Institutional Investors Boosting XRP

Regarding retail investors, Grissom stated that they generally provide only a modest boost to XRP’s price, often entering markets at peaks. He believes that the major price increases will come from institutional investors.

Supporting this view, he highlighted scenarios where hedge funds and retirement funds invest in exchange-traded products (ETPs) backed by physical XRP, offering substantial support for the XRP price.

According to Grissom, the combination of institutional investment, the shift from traditional banking systems, and XRP’s strategic advantages creates a robust foundation for its potential price increase to $100.

Notably, XRP is currently trading at $0.5712, up by 13% over the past year. For XRP to reach the $100 price target, it would need to experience an aggressive price surge of 17,407%. While some analysts believe this price point could be achievable within the next year, others have projected a timeline of several decades.