No big-name cryptocurrency has done as well as XRP (XRP 2.63%) recently. It currently trades at $3.60 at the time of this writing (July 17), and over the last three years, it's up 899%. That's a better return than any other coin in the top 10 by market cap. Bitcoin (BTC 2.24%) is second at 464%.
As the saying goes, past performance is no guarantee of future results. What's XRP going to do over the next three years? Let's look at growth projections and the factors that could push XRP's price even higher.
Image source: Getty Images.
Growth projections for XRP and the crypto market
The entire crypto market is currently worth $4 trillion, up 61% over the last year. However, the market also goes through boom and bust cycles. After breaking the $3 trillion mark in November 2021, it plummeted to below $1 trillion and took almost three years to recover.
Still, analysts are generally positive about the direction of the crypto market. Market research company IMARC Group is projecting a compound annual growth rate (CAGR) of 9.7% until 2033. Morningstar analysts have similar expectations of about 10% annual growth through 2034. Finally, Roots Analysis projects annual growth of 11.5% until 2035.
Based on a range of 9.7% to 11.5% annual growth, XRP would be worth $4.75 to $4.99 in three years. Not a bad return, but it's probably less than what most investors want. Some analysts are more bullish, though. Geoffrey Kendrick at Standard Chartered projects that XRP could reach $12.50 by the end of 2028.
A price of $12.50 would be quite the run for XRP, but there are compelling reasons why it could continue to outperform the crypto market as a whole.
XRP's blockchain is a more efficient way to make international payments
Tech company Ripple designed XRP and its blockchain, the XRP Ledger (XRPL), as a better method of sending money internationally. SWIFT (Society for Worldwide Interbank Financial Telecommunications) has long dominated this market, but transactions aren't fast or cheap, with fees often ranging from $15 to $30.
On the XRPL, transactions process in three to five seconds and cost well under $0.01, with fees being paid in XRP. XRP can also serve as a bridge currency for cross-border payments. The sender converts the payment to XRP, and the receiver converts XRP to their currency. However, Ripple launched a stablecoin last year, Ripple USD, to provide a bridge currency that won't fluctuate in value like XRP.
CRYPTO: XRP
Key Data Points
Ripple CEO Brad Garlinghouse has said that he believes Ripple could process 14% of SWIFT's transaction volume within five years. That would be about $21 trillion in payments, as estimates put SWIFT's annual volume at $150 trillion. It's a lofty goal, considering XRP just passed $1 trillion in transactions total at the end of last year.
If Ripple can take a decent bite out of SWIFT's market, then the sky is the limit for XRP. But it's still too early to say if Ripple and the XRPL will reach widespread adoption among financial institutions.
Are XRP ETFs on the way?
The Securities and Exchange Commission (SEC) approved the first spot crypto ETFs (exchange-traded funds) last year. Bitcoin ETFs started trading on Jan. 10, 2024. Ethereum (ETH 2.15%) ETFs followed on July 23.
XRP ETFs could be next, as the SEC is reviewing several applications. Polymarket puts the odds of approval in 2025 at 86%.
The approval of XRP ETFs could be a growth catalyst, although this isn't guaranteed. Bitcoin seemed to benefit from ETF approval. Its price went up by 100% in the year after approval, and there have been about $54 billion in Bitcoin ETF inflows to date. However, Ethereum hasn't had the same success. It has been nearly a year since the approval of Ethereum ETFs, and the price of Ethereum is up 1%.
That said, ETF approval would undoubtedly be a positive sign for XRP, especially since it's already trending up. It would make investing in XRP more accessible and could attract institutional investors. If the SEC approves XRP ETFs, I expect the price to jump.
A three-year forecast for XRP
I'm cautiously optimistic about XRP. It has the potential to improve cross-border payments, and it has become one of the most well-known cryptocurrencies, which could help it stay near the top of the market.
Over the next three years, I think XRP could hit $7 or higher. There will be plenty of ups and downs, but overall, I see this cryptocurrency doubling in value.
Another possibility is that XRP can't gain much more traction with financial institutions, and it could plummet to under $1. Cryptocurrencies are volatile, which is great when things are going well, but also means losses can come fast and heavy. If you're going to invest in XRP, the safest approach is to only put in what you can afford to lose.
