The XRP (XRP +0.53%) cryptocurrency was created in 2012 by a company called Ripple. It was designed to standardize transactions on the Ripple Payments network, which lets banks send money around the world instantly, and with nominal fees.
XRP soared to an all-time high of $3.65 per token last year, but it has since lost 70% of its value and trades at just $1.09 as of July 17. To be clear, the entire crypto market has suffered a steep decline during the same period, but XRP is contending with some structural issues that might be difficult to overcome.
Here's where the token could be trading five years from now.
Image source: Getty Images.
Why XRP might be falling out of favor
Many global banks have adopted the Society for Worldwide Interbank Financial Telecommunication (SWIFT) network, but others haven't, in which case transferring money requires the use of an intermediary to help with settlement. This often adds days to the process, not to mention costs.
Ripple Payments was designed so that global banks can communicate with one another directly, regardless of what existing infrastructure they use, paving the way for instant settlements. XRP was created to standardize each transaction. For example, a Japanese bank can send XRP to a U.S. bank instead of sending Japanese Yen, eliminating costly foreign exchange fees. The U.S. bank can simply convert the XRP into dollars upon receipt.
That kind of transaction can cost as little as 0.00001 XRP tokens, which is a fraction of one U.S. cent. But using XRP isn't risk-free. The crypto can be highly volatile, exposing banks to potential losses if they need to hold tokens for a period of time.
Plus, unlike most cryptocurrencies, XRP is centralized because it's solely issued by Ripple. That means XRP's value can decline if the company experiences problems. That's exactly what happened when Ripple spent five years battling the U.S. Securities and Exchange Commission (SEC) in court between 2020 and 2025, over alleged regulatory breaches. The parties eventually settled the case.
Right now, XRP might be falling out of favor due to the rise of alternatives, particularly stablecoins. Ripple itself launched a stablecoin called Ripple USD (RLUSD +0.00%) in late 2024. RLUSD not has no volatility, and is also more tightly regulated than XRP, so it offers users some protection against fraud.
XRP could be much lower in five years
When XRP reached $3.65 per token last year, it marked the first new record high since 2018. On that previous occasion, XRP subsequently lost 95% of its peak value by mid-2020, which suggests that its recent decline may foreshadow further losses.
CRYPTO: XRP
Key Data Points
Aside from its volatility and the rise of stablecoins, XRP faces some structural issues that stand in the way of sustainable upside. First, banks don't have to use the token to benefit from instant cross-border transactions through Ripple Payments, because the network also supports the use of fiat currency. That means any growth in the network's adoption won't necessarily result in upside for XRP.
Second, bridge currencies aren't really designed to deliver returns for investors. In my earlier example, the Japanese bank would be a buyer of XRP, but the U.S. bank would be an equal seller when it converts its tokens into dollars. Therefore, this transaction would be a wash and create no real value.
Those fundamentals haven't changed since XRP was created 14 years ago, so it's no surprise the token is plummeting yet again, just as it did after its 2018 peak. If the recent decline continues and matches the post-2018 decline of 95%, then XRP could eventually fall to about $0.18. In any case, I think the token will be trading well below $1 five years from now.
In my opinion, XRP will only experience a real increase in value if users suddenly discover a reason to buy it and hold it for the long run. Speculation was a core driver of its rallies in both 2018 and 2025, which simply isn't sustainable because it relies on the hope that other investors will come along and pay a higher price for the token in the future. This is known as the greater fool theory, and it's no way to create true value.
