The cryptocurrency market is currently worth about $3 trillion. Th market produced a total return of 72% (about 20% annually) during the past three years. Morningstar analysts expect the market to reach $7.8 trillion by the end of 2034, a sensible estimate that implies a total return of 160% in the next decade (about 10% annually).
Applying that estimate to XRP (XRP 0.94%), which currently trades at about $2.20, suggests a price of $5.75 by early 2035. But XRP has typically produced better gains than the broader market -- for instance, its price climbed 270% during the past three years -- and that trend will likely continue given its standing as the fourth-most-valuable cryptocurrency.
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Here's my prediction: XRP will hit $7.50 by early 2035. That implies a total return of 240% (13% annually) during the next decade. But reaching that target will require increased adoption by banks and payment service providers as well as greater demand among retail and institutional investors.
Here's why those things could happen.
CRYPTO: XRP
Key Data Points
XRP is a faster and cheaper alternative to traditional cross-border payments solutions
XRP is the native cryptocurrency on the XRP Ledger, a blockchain designed by Ripple to make cross-border payments and currency exchanges faster and cheaper. Today, most international payments move through the SWIFT (Society for Worldwide Interbank Financial Telecommunication) system, but that typically involves one or more intermediaries that make transactions costly and time consuming.
Ripple eliminates that friction. Its payments platform uses XRP and the stablecoin Ripple USD to settle cross-border transactions and foreign currency exchanges in seconds, typically at a much lower cost than traditional solutions like the SWIFT system. Although fewer than 200 institutions use the platform today, the number could rise as banks and fintechs become more familiar with blockchain technology.
Spot XRP ETFs could unlock demand among retail and institutional investors
Retail and institutional investors have become increasingly comfortable with digital assets, especially the highly visible ones like XRP. But cryptocurrency exchanges are still a source of friction for many potential market participants. Not only do platforms like Coinbase require separate accounts, but they generally charge high transaction and custody fees.
Consequently, several asset managers have recently asked the Securities and Exchange Commission (SEC) for permission to create spot XRP exchange-traded funds (ETFs). Those funds would trade on traditional stock market exchanges, which means investors could get exposure to XRP through existing brokerage accounts. By simplifying adoption, spot XRP ETFs could bring more retail and institutional investors to the market.
Indeed, Bitcoin has more than doubled in value since the SEC first approved spot Bitcoin ETFs in January 2024. It's reasonable to think XRP could generate similar returns if spot XRP ETFs are approved. And approval seems likely given the cryptocurrency-friendly stance of the newly appointed SEC chairman, Paul Atkins.
Investors should be cautious with cryptocurrencies
Investors should bear in mind that cryptocurrency is a relatively new asset class that has been very volatile during its brief history. There is no guarantee XRP will be worth more in the future, so investors should never put money into the cryptocurrency if they aren't prepared to lose it.
Additionally, even if XRP's price does increase 240% to reach $7.50 in the next decade, it will likely suffer steep declines along the way. Investors should be prepared to hold through volatility.
