Prediction: XRP (Ripple) Will Be Worth This Much in 5 Years
Written by Trevor Jennewine for The Motley Fool -> Morningstar analysts expect the cryptocurrency market to expand at 9% annually through 2034, but I think XRP could grow more quickly over the next five years. Ripple uses XRP to support fast, cheap cross-border payments, and th
Morningstar analysts expect the cryptocurrency market to expand at 9% annually through 2034, but I think XRP could grow more quickly over the next five years.
Ripple uses XRP to support fast, cheap cross-border payments, and the recent launch of the Ripple USD stablecoin makes the ecosystem more attractive.
The SEC is expected to make a decision regarding spot XRP ETFs by late October, and approval could send XRP prices much higher in the years ahead.
XRP (CRYPTO: XRP) has advanced 725% in the last three years, with most of those gains coming in the last 12 months following President Trump's election and the SEC's decision to end its lawsuit against Ripple, a fintech company that uses the XRP blockchain to facilitate payments for businesses and financial institutions.
Geoff Kendrick at Standard Chartered anticipates more gains as XRP plays a larger role in the global financial systems and XRP ETFs bring more investors to the market. He estimates XRP to reach $12.25 by 2029. That implies 315% upside from its current price of $2.95, which is equivalent to annual returns of 43%.
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That seems overly optimistic. Morningstar analysts expect the broader cryptocurrency market to grow at 9% annually through 2034, a reasonable estimate that roughly aligns with the long-term returns in the global stock market. XRP, the third-largest cryptocurrency, is likely to outperform the market, but not so much as Kendrick predicted.
Investors should be more conservative: If XRP returns 20% annually over the next five years, its price will increase about 150% to $7.35 by late 2030. The pending approval of spot XRP ETFs is the most important catalyst in my estimate, but greater adoption from businesses and financial institutions is plausible to some degree.
