Learn more about reasons for and against buying this innovative crypto.
After a painful down year in 2022, the cryptocurrency market is back in investors' good graces, as its valuation currently sits at $2.3 trillion (as of May 16). That's up considerably from about $800 billion at the start of 2023.
Even with the benefit of the bull run, Ripple (XRP -0.84%) hasn't gained much. The blockchain network's payments-focused digital token, XRP, has climbed just 17% in the past 12 months, seriously lagging the 140% gain of Bitcoin.
Is it time to buy XRP while it's still below $1? There are many factors to consider before coming to a conclusion.
Valuable use case
Ripple Labs, formerly known as OpenCoin, launched XRP as far back as 2012, so this is one of the earliest cryptocurrencies to hit the market. It's even older than Ethereum, which was introduced in 2015.
The purpose of this project was and still is to facilitate cross-border payments with a solution that's fast, cheap, and energy-efficient. Ripple works as a bridge currency that allows a sender of money to convert from their home currency to XRP and make the transfer. The receiver can then convert XRP into their home currency.
Ripple has already partnered with numerous banks and financial institutions in an effort to gain broader adoption. The market for this is truly huge, as $23.5 trillion was sent by corporations across borders in 2020, according to consulting firm Oliver Wyman. Even if XRP can be used for a tiny slice of this activity, demand for the token could soar, leading to higher prices.
What Ripple is trying to do, namely by trying to gain broad adoption with a real-world use case, stands in stark contrast to most of the cryptocurrency industry. Almost all of the thousands of tokens out there serve no purpose, and that helps XRP stand out.
Too much uncertainty
That's where the bullish case ends. A major red flag is Ripple's ongoing battle with the Securities and Exchange Commission (SEC). The latest ruling said that the sale of tokens to institutional buyers did violate laws, as XRP tokens can be viewed as securities that weren't registered properly. The SEC is seeking $2 billion in penalties and fines from Ripple.
It's never good when you're in the crosshairs of the most powerful financial regulator there is. Whether you're an expert in legal disputes like this, it's almost impossible to know how things will play out. This regulatory uncertainty could be the single reason XRP is down 18% in 2024 and sits 87% below its peak price.
I'd rather avoid this altogether. But if you are interested in adding XRP to your portfolio, then maybe it's better to wait until there are some clear answers from the SEC. Then at least there will be some clarity.
Additionally, I'm not too confident about Ripple's and XRP's ability to achieve much greater adoption over the long term. It's already been 12 years since its launch. What makes one think that its usage will suddenly skyrocket in the years ahead?
In other words, I think the total addressable market is significantly smaller than one would think, given the huge size of institutional cross-border payments activity. The global banks and financial firms out there aren't just going to sit idle and give up a big moneymaking service to a small blockchain network that still faces technical and legal risks.
This is an innovative cryptocurrency. But investors should temper expectations. There's a lot of risk with owning XRP, so it's best to avoid buying it, even though it is below $1.
Neil Patel and his clients have no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Bitcoin, Ethereum, and XRP. The Motley Fool has a disclosure policy.
FAQs
There's a lot of risk with owning XRP, so it's best to avoid buying it, even though it is below $1.
Should I buy XRP now? ›
So, if you're comfortable taking on a high-risk bet, while also being bullish on XRP's long-term prospects, I can understand why you would be inclined to take a small position in the digital asset. The cryptocurrency could pay off eventually. However, it could also prove to be a losing investment.
Is there any hope for XRP? ›
As Drozdz notes, while current events suggest a positive outlook for XRP, particularly with the new bull market in cryptocurrencies, inherent risks are involved. However, the world of cryptocurrencies is known for its wild swings and unpredictability.
What is the honest prediction for XRP? ›
Our real-time XRP to USD price update shows the current Ripple price as $0.528357 USD. Our most recent Ripple price forecast indicates that its value will increase by 33.01% and reach $0.702771 by September 13, 2024.
Is XRP really going to explode? ›
While it's theoretically possible for XRP to reach this price, it would require substantial market shifts or a major supply reduction. If the project were to reform significantly to drive value to the XRP token, there is every chance that XRP could soar to new highs.
What price can XRP realistically reach? ›
If the crypto market cap hits $3 trillion and XRP retains its current 1.10% dominance, its price could ascend to $0.589 by 2025. In a more bullish scenario of the crypto market surging to $10 Trillion, the price of XRP could soar to a staggering $1.96, resulting in a potential 4x return for investors by 2030.
How much will 1 XRP be worth in 2030? ›
Ripple (XRP) Price Prediction Table
| Year | Average Price* | Percent Increase |
|---|
| 2029 | $5.34 | 47.92% |
| 2030 | $7.62 | 42.70% |
| 2031 | $11.28 | 48.03% |
| 2032 | $16.55 | 46.72% |
7 more rowsTechopedia also sees potential for growth, estimating XRP could reach a maximum of $9 by 2030, potentially becoming a bridge currency due to its near-zero settlement times and the rise of central bank digital currencies. However, other sources offer a more conservative outlook.
How high can XRP go in 2024? ›
The current price of the Ripple cryptocurrency on 10.09. 2024 is $0.53900. Experts predict significant growth of the XRP price by the end of 2024, reaching $0.75–$0.86. Most XRP price forecasts suggest growth to $1 by mid-2025, reflecting a bullish outlook.
Can Ripple XRP reach $50 if yes by around what time? ›
There are several factors on which one can make an assumption regarding whether ripple will reach the price of $50 or not. However, in general terms, it's highly unlikely for Ripple to reach this level because its market cap isn't that high, and isn't likely to reach higher levels in the next five years.
Home » Can XRP Reach $100 Dollars? To reach $100, XRP must climb 270 times. At $100, the market capitalization of XRP would be $5.1 trillion. If XRP rose at a 25% annual pace, it would take at least 26 years to hit $100.
Is XRP undervalued? ›
With a pre-mined token supply and potential for long-term adoption, XRP's value could certainly be under-appreciated. Short-term price fluctuations depend on market dynamics, but a rally to $1 is plausible with growing interest in cryptocurrencies.
Which crypto will boom in 2024? ›
Top 10 Cryptos in 2024
| Coin | Market Capitalization | Current Price |
|---|
| Ethereum (ETH) | $287.89 billion | $2,393 |
| Binance Coin (BNB) | $73.99 billion | $507.14 |
| Solana (SOL) | $62.45 million | $133.76 |
| Ripple (XRP) | $30.62 billion | $0.54 |
6 more rowsSep 6, 2024
Ripple secured a partial victory in July 2023, with the court ruling that only institutional sales of the XRP token, not programmatic sales to retail investors, were unregistered securities offerings.
Is XRP a dead coin? ›
Summary: Is XRP Dead? XRP as a project is far from dead – it continues to form partnerships with financial institutions.
Could XRP skyrocket? ›
Add in the fact that the crypto market recently witnessed a mini-crash, and it's easy to see why investors might be scared off speculative risk assets like XRP. That being said, there's a clear path to XRP doubling in price to $1 by 2025, and I think that will be the next big move for Ripple's XRP.
Will ripple XRP reach $50? ›
There are several factors on which one can make an assumption regarding whether ripple will reach the price of $50 or not. However, in general terms, it's highly unlikely for Ripple to reach this level because its market cap isn't that high, and isn't likely to reach higher levels in the next five years.
Will XRP hit 1000? ›
For XRP to clinch a $1,000 price, it would need to skyrocket by a massive 188,543% from its current value of $0.5301. With this price potentially pushing XRP's market cap to an unimaginable $55 trillion, some industry commentators have strongly expressed doubts.
Which crypto will explode in 2024? ›
Alongside Bitcoin, four altcoins - Pepe Unchained, Crypto All-Stars, Base Dawgz, and Solana - are showing potential for significant growth in 2024, driven by their unique features and strong communities. After a trying journey, Bitcoin is preparing for another surge.
