Could Buying XRP Today Set You Up for Life?

The appeal of investing in cryptocurrency is that if a coin takes off, it could multiply your money. XRP (CRYPTO: XRP) has done that before, going from under $0.50 in 2024 to a peak of $3.65 in July 2025. But it gave back a big chunk of those gains, and it trades at $1.38 as of Oct. 21.

For XRP bulls, this is an opportunity to buy low and benefit if the cryptocurrency takes off as part of blockchain company Ripple's international payments network. I have my doubts about that, and if you're looking for an XRP investment to set you up for life, you could end up disappointed.

Image source: The Motley Fool.

The problem with XRP

XRP fans often point to Ripple's growth as a bull case for the cryptocurrency. And Ripple indeed seems to be doing well. It's a private company, so there aren't any public financial statements available, but it was valued at $50 billion following a $750 million share buyback offer in March 2026. That makes it one of the largest crypto companies, in the same range as Coinbase. Ripple has also made several high-profile acquisitions and expanded its payments platform.

But XRP isn't Ripple. It's a bridge currency used in one of Ripple's payment products. Banks that partner with Ripple can use XRP, but most don't, based on what's been reported so far. Of the over 300 financial institutions using Ripple, fewer than 10 are reported to use XRP.

Momentum has slowed

XRP soared after the 2024 presidential election, largely on the basis that the Trump administration could mean more crypto-friendly leadership at the SEC. Ripple and the SEC ended their legal battle in August 2024, but XRP has struggled to build much positive momentum.

Spot XRP ETFs launched in November 2025, and these ETFs collectively have about $1.6 billion in assets under management (AUM). However, XRP's price has declined for much of the last year, so ETF approval hasn't moved the needle yet.

The Clarity Act, which would have established a regulatory framework that could classify cryptocurrencies like XRP as digital commodities under federal law, failed to pass the U.S. Senate. It was considered a potential tailwind for XRP, so its failure is disappointing for investors.

Don't expect XRP to make you rich

XRP is already the fifth-largest cryptocurrency, with a market cap of about $87 billion. A 10x increase would make it worth $870 billion, more than any cryptocurrency other than Bitcoin has achieved. For it to become a 100-bagger, the type of investment that can truly set you up for life, it would need to reach about $8.7 trillion, a mark not even the world's largest public companies have reached.

I'm skeptical of XRP as a long-term investment because Ripple's progress hasn't translated into increased demand for the token. If anything, investing in Ripple looks like the more interesting opportunity if it decides to go public one day.

XRP could go on another bull run. It has done so before, and when it goes up, it tends to move quickly. The downturns are usually just as sharp, so take a cautious approach if you invest, and be ready for volatility.

Lyle Daly has positions in Bitcoin. The Motley Fool has positions in and recommends Bitcoin and XRP. The Motley Fool recommends Coinbase Global. The Motley Fool has a disclosure policy.