XRP (XRP-USD) may be controversial in some corners of the crypto community, with critics arguing it isn’t truly decentralized and thus lacks a key trait of most cryptocurrencies. Still, many supporters point to its real-world utility as a reason to take it seriously, challenging the notion that all digital tokens are inherently worthless.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
In particular, XRP stands out for its ability to streamline cross-border payments. Unlike traditional international transfers, which can take nearly a full day and come with hefty fees, XRP enables settlements in seconds at minimal cost. This practical function forms the foundation of a more bullish outlook on the token.
Building on that utility, top investor Chris Neiger, who is among the top 1% of TipRanks’ stock pros, points to “two reasons to be optimistic about XRP over the next year,” while also acknowledging the risks that remain.
The first reason centers on Ripple’s recent settlement with the Securities and Exchange Commission (SEC). The agency had accused Ripple Labs, the company behind XRP, of selling unregistered securities. That legal dispute concluded last month, with Ripple agreeing to a $50 million fine and reclaiming $125 million previously held by the SEC.
Resolving the lawsuit removes a major cloud of uncertainty that had been hanging over XRP, potentially opening the door for increased institutional adoption. As Neiger notes, “There’s no guarantee that XRP will gain widespread adoption over the next year, or ever, but with the lawsuit out of the way, it’s far more likely than before that institutions could move in this direction.”
The second reason for optimism involves the possibility of an XRP exchange-traded fund (ETF). ETFs have become a popular way to gain exposure to various assets, including cryptocurrencies. Over the past year, several Bitcoin ETFs have launched with strong investor demand – BlackRock’s iShares Bitcoin Trust ETF, for instance, has pulled in nearly $49 billion in net inflows since its 2024 debut. Now, investor focus is shifting to XRP. According to prediction market Polymarket, the odds of an XRP ETF launching this year have jumped to 98%, up sharply from 68% in April.
Still, despite the promising developments, Neiger urges caution. He emphasizes that XRP remains highly volatile, and while some analysts forecast a potential 1,000% surge if an ETF is approved, they also warn of the risk of a sharp correction, possibly up to 90%, if sentiment shifts.
“Still,” Neiger summed up, “the real-world application of using XRP’s blockchain to process cross-border transactions makes the token an interesting investment idea. If you’re OK with volatility, then having a small position in XRP may not be a bad idea. But it’s important to remember that crypto should play a limited role in your overall investment strategy.” (To watch Neiger’s track record, click here)
To find good ideas for crypto stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a tool that unites all of TipRanks’ equity insights.
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.