It's an exciting time for fans of XRP (XRP +1.04%), the first cryptocurrency developed by Ripple, a blockchain payments company. After a long wait, the first spot XRP ETF has launched in the U.S., and several companies are reportedly adding XRP to their treasuries.
ETF approval and corporate investments were big growth drivers for Bitcoin and Ethereum. With that in mind, XRP may look like the next millionaire-maker cryptocurrency. However, I wouldn't get your expectations too high if you're planning to invest.
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XRP is probably past its millionaire-maker stage
There aren't any strict guidelines on what kind of returns are required for a cryptocurrency to be a millionaire-maker, but 50 times to 100 times your investment is a good-enough range. With that kind of growth, you'd have $1 million from an initial purchase of $10,000 to $20,000.
XRP has a market cap of about $140 billion (as of Nov. 14). If it gets 50 times bigger, the total value would be $7 trillion. For perspective, the entire crypto market is worth less than half of that ($3.2 trillion).
CRYPTO: XRP
Key Data Points
XRP could be a winning cryptocurrency investment over the next five to 10 years, but it most likely won't turn a modest position into $1 million. The people who made millions from XRP are the ones who got in during its early days, when it was trading for under $0.05.
