Ripple (XRP) has been one of the crypto market’s biggest winners since Trump’s election win, surging by 314% since early November, even after a 36% pullback from January’s highs.
While the crypto space is often driven by hype, with many tokens soaring to giddy heights despite offering little real value, Ripple, with its focus on cross-border payments, actually boasts some real-world utility.
XRP is the native digital asset of the XRP Ledger, a blockchain developed by Ripple to streamline and reduce the cost of cross-border payments and currency exchanges. Currently, most international transactions rely on the SWIFT network, which often involves intermediaries, leading to higher costs and long transaction times.
Ripple addresses these inefficiencies by using its payments platform, which leverages XRP and the Ripple USD stablecoin to complete international transfers and currency exchanges within seconds – usually at a significantly lower cost than conventional systems like SWIFT.
Investor Trevor Jennewine notes that while Ripple’s network currently has under 200 institutional users, that number could grow as banks and fintech companies gain a better understanding of blockchain technology. That appears to already be happening. Retail and institutional investors have “become increasingly comfortable” with digital assets, particularly well-known ones like XRP.
And XRP looks primed to make further headway. While cryptocurrency exchanges still create barriers for many users, often requiring separate accounts and charging high fees for transactions and custody, several asset managers have requested SEC approval to launch spot XRP ETFs. These would trade on traditional stock exchanges and allow investors to access XRP through standard brokerage accounts. This could make adoption easier and attract more retail and institutional investors.
Just look at Bitcoin, its price more than doubled after spot Bitcoin ETFs were approved in January 2024. “It’s reasonable to think XRP could generate similar returns if spot XRP ETFs are approved,” said Jennewine. “And approval seems likely given the cryptocurrency-friendly stance of the newly appointed SEC chairman, Paul Atkins.”
So, what’s the long-term growth potential here? If broader adoption of XRP by banks and payment providers, along with growing interest from both retail and institutional investors takes place, Jennewine thinks XRP could hit $7.50 by early 2035. That suggests a total return of almost 260% (over 13.5% annually), and involves faster growth than the broader crypto market.
However, Jennewine expects that getting there will involve a rocky ride. Even if in the next decade XRP’s price does reach $7.50, it will most probably “suffer steep declines along the way,” and investors should be prepared to “hold through volatility.” (To watch Jennewine’s track record, click here)
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Disclaimer: The opinions expressed in this article are solely those of the featured investor. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.