While Morningstar analysts project a 9% annual growth rate for the cryptocurrency market through 2034, some forecasts suggest XRP could significantly outpace this average over the next five years.
Geoff Kendrick of Standard Chartered predicts XRP could reach $12.25 by 2029, implying a 315% increase from its current price, or an annual return of 43%. A more conservative estimate suggests a 20% annual return, which would place XRP’s price around $7.35 by late 2030. These optimistic outlooks hinge on several key factors, including the potential approval of spot XRP ETFs and the token’s role in global finance.
Fintech company Ripple utilizes the XRP token to power its On-Demand Liquidity (ODL) service, which offers a faster and less expensive alternative to traditional cross-border payment systems like SWIFT. However, widespread adoption of ODL has been hindered by XRP’s price volatility, leading most of Ripple’s institutional clients to use its other services that do not rely on the token.
To address this volatility, Ripple has introduced a stablecoin, Ripple USD (RLUSD). While increased use of the Ripple network for payments could boost demand for XRP—as transaction fees are paid in the token—RLUSD faces stiff competition from established stablecoins like USDC and Tether.
The most significant near-term catalyst for XRP is the potential regulatory approval of spot XRP exchange-traded funds (ETFs). The U.S. Securities and Exchange Commission (SEC) has received at least eight applications for such products and is expected to reach a decision for most by late October 2025. Bloomberg analyst Eric Balchunas places the odds of approval at 95%.
The launch of spot ETFs could unlock significant demand from both retail and institutional investors by providing a more accessible and regulated investment vehicle. For comparison, Bitcoin’s value has increased 140% since its spot ETFs were approved. While XRP ETFs may not attract the same level of attention, the increased accessibility could be a powerful driver for its price.
Despite the positive outlook, investors should remain aware of the risks. XRP has a history of extreme volatility, having experienced price drops of over 35% from its peak multiple times in the last three years alone. Therefore, the cryptocurrency may not be suitable for those uncomfortable with significant price fluctuations.
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