It has been an incredible run for Ripple (XRP 4.27%) since the crypto token launched in 2012. Since inception, XRP has risen in value by nearly 60,000%.
Few investments have performed this well during the past 13 years. But what about the next 13 years? Here are three things to expect from this promising crypto venture over the long term.
CRYPTO: XRP
Key Data Points
1. Can Ripple rise another 60,000%?
Let's get one thing out of the way first: Don't expect XRP to rise by another 60,000%. If that were to occur, Ripple would have a market cap of of more than $90 trillion. The gross domestic product of the entire world, mind you, is less than $120 trillion.
Of course, Ripple does have significant long-term growth potential. The SWIFT payments network -- a network that Ripple has long attempted to replace -- processes trillions of dollars per day. The Visa network, for comparison handled less than $16 trillion over the entirety of 2024, giving the company a market cap of about $650 billion. Importantly, however, the SWIFT network doesn't charge any fees. It is only the banks involved in the transfers that levy their own fees. So comparing Ripple to a conventional network like Visa or SWIFT isn't as simple as it seems.
Still, the global transactions market is one of the biggest in existence. And Ripple's technology could take a meaningful share of this volume. But another 60,000% run is very improbable given the size of the global economy.
2. Expect institutional adoption of XRP Ledger to accelerate
In theory, using Ripple's XRP Ledger would be cheaper, faster, and more transparent than existing solutions. Yet few major financial institutions have bought in. Why? There are two primary reasons.
First, Ripple is a novel, crypto-backed technology. The SWIFT network, for comparison, was launched in 1973, with very few meaningful issues along the way. Ditching a decades-old, proven system for a technological upstart in order to transfer trillions of dollars on a daily basis was never going to happen overnight. Second, Ripple has been involved in a slew of legal troubles over the years, tarnishing its reputation.
But here's the thing: Ripple's legal troubles could finally be behind it. The project recently settled with the Security and Exchange Commission (SEC) on a major case, and regulators seem much more friendly to crypto-backed solutions under the current administration. This could clear the way for more banks to start piloting Ripple's technology. Bank of America, for example, has now confirmed that it is testing Ripple's network for internal and pilot cross-border payments. While the pace of adoption is still uncertain, it is increasingly likely that Ripple makes meaningful progress in this area during the next decade and beyond.
3. Ripple won't be a one-trick pony
During the past 13 years, Ripple has largely struggled to get financial institutions to use its network. In response, the project has recently been developing additional solutions that, at least in theory, make adopting its network more attractive.
Late last year, for instance, Ripple launched its own stablecoin. This stablecoin could serve a key role on Ripple's payment network, allowing users to send or receive digital dollars with Ripple USD. Ripple has also made other acquisitions and partnerships to strengthen its position in the stablecoin space, moves that could not only create more demand for its network but also enable new opportunities for the project that weren't available when the network served simply as a transactional layer.
With improved regulatory conditions, we could see Ripple innovate faster than ever. Its recent push into stablecoins represents only the start of those efforts. While Ripple was essentially a one-trick pony since its debut, I expect the project to expand into a more fully developed ecosystem during the next 13 years.
