XRP prices may see substantial growth, potentially increasing by 100% over the next three years, propelled by a more favorable regulatory landscape and the anticipated approval of spot XRP ETFs soon. Ripple, the fintech company utilizing XRP for cross-border payment solutions, has also expanded its offerings by introducing a stablecoin into its payments ecosystem.
In the past year, XRP has experienced significant fluctuations, declining over 20% from its record highs on two separate occasions. Investors should brace themselves for continued volatility in this space. Geoffrey Kendrick from Standard Chartered projects XRP could reach $12.50 by 2028, indicating a 325% increase from its current price of $2.95, which translates to annual returns of approximately 62% over the next three years. This rate represents a slowdown compared to the 87% annual returns seen in the previous three years.
Meanwhile, Michael Miller from Morningstar forecasts the overall cryptocurrency market could reach a valuation of $8.5 trillion by 2034. This projection suggests a modest annual growth rate of 8.4%, a stark contrast to the 60% growth rate experienced in the last three years. With these figures in mind, some analysts believe XRP could outperform the broader market. Specifically, one forecast estimates XRP could hit $5.90 within three years, indicating an expected annual return of around 26%.
A significant factor influencing this potential surge is the shift in the U.S. regulatory environment. Under former SEC Chairman Gary Gensler, the regulatory body was viewed as antagonistic towards the cryptocurrency sector, focusing heavily on enforcement rather than developing clear rules. However, the landscape has changed following an executive order from President Trump aimed at enhancing U.S. leadership in digital assets, along with the nomination of crypto advocate Paul Atkins as the new SEC chair. A notable outcome of this shift was the SEC’s repeal of Staff Accounting Bulletin (SAB) 121, which previously discouraged financial institutions from offering crypto custody services, subsequently fostering greater adoption of digital assets among institutional investors.
Ripple remains focused on utilizing XRP to provide efficient cross-border payment solutions. One of its products, on-demand liquidity, uses XRP as a bridging currency for international money transfers, significantly reducing the time and costs compared to traditional systems like SWIFT. Despite having a plethora of customers, XRP’s adoption remains limited, primarily due to its volatility compared to stablecoins. To address this, Ripple launched Ripple USD (RLUSD) in December 2024, though its impact on XRP demand has yet to be observed as it must compete with more established stablecoins.
Looking ahead, the anticipated approval of several spot XRP exchange-traded funds (ETFs) between mid to late October could serve as a crucial catalyst for XRP’s price. Experts are generally optimistic about the outcomes, which could attract both retail and institutional investors who have previously stayed away from the asset due to the complicated and costly nature of cryptocurrency exchanges. This mirrors the success seen with Bitcoin, which experienced a 165% uptick since the approval of its spot ETFs in January 2024.
However, investors should remain cautious as cryptocurrency investments inherently carry risks. XRP’s recent drastic price drops warn potential investors of the volatility they may face, specifically noting a 45% decline experienced earlier in the year.
For those considering investing $1,000 in XRP, evaluating alternative opportunities is advised, as recent recommendations suggest 10 stocks that are currently viewed as more promising. Historical performance of these selections highlights substantial potential, with significant returns realized by early investors in companies like Netflix and Nvidia. As market dynamics shift and the cryptocurrency landscape evolves, investors should weigh their options carefully, especially given XRP’s uncertain market position in contrast to more traditional financial vehicles.
