Prediction: XRP Could Be Worth $600 Billion in 5 Years

XRP (CRYPTO: XRP) has been one of the top-performing cryptocurrencies of 2025. It's now up almost 25% year to date, and currently trades at a price of about $2.54, giving XRP a total market cap of $150 billion.

That's just the beginning of XRP's resurgence. The world's third-most valuable cryptocurrency could quadruple in price and be worth $600 billion within just five years. Here's one way that it could play out.

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How fast does XRP have to grow?

On the surface, a $600 billion valuation for XRP might appear unrealistic. After all, that's twice the current valuation of Ethereum.

So let's do a little math and consider the following question: How fast would XRP need to grow on a year-over-year basis to hit a market cap of $600 billion within five years?

The numbers might surprise you. XRP would need to grow at an annualized rate of 15% to double in price within five years. It would need to grow at an annualized rate of 25% to triple in price. And it would need to grow at an annualized rate of 32% to quadruple in price.

When you start to think about XRP from this perspective, the $600 billion number makes a lot more sense. The hard part is finding new business opportunities that are capable of growing at a fairly brisk 30% rate during the next five years.

Consider stablecoins

The first huge opportunity for XRP involves stablecoins. These are dollar-pegged cryptocurrencies that are designed to track the value of the U.S. dollar on a 1-to-1 basis. Theoretically, the value of a stablecoin pegged to the U.S. dollar should always be $1.

Image source: Getty Images.

The good news is that stablecoins happen to be one of the fastest-growing segments of cryptocurrency. The total value of the stablecoin industry is now $230 billion. According to the Brookings Institution, that's a more than 10-fold increase from $20 billion in 2019. So this is exactly the type of fast-growing business opportunity that XRP needs.

As you might have guessed, Ripple, the company behind the XRP token, has been making aggressive moves into the stablecoin industry. In December, it launched a stablecoin of its own, known as Ripple USD (CRYPTO: RLUSD). Then, in April, it made a $5 billion acquisition bid for Circle, the company behind the enormously popular USDC (CRYPTO: USDC) stablecoin.

Brad Garlinghouse, chief executive officer of Ripple, has become a vocal champion of stablecoins, and has spoken out about the need for comprehensive new stablecoin legislation within the U.S. Garlinghouse sees what other crypto leaders see: Stablecoins are the key to bridging the worlds of traditional finance and blockchain finance, and opening the door to new opportunities on Wall Street.

Cross-border payments

XRP is the token of the Ripple payment network, which is based on blockchain technology. The most obvious application for this network is to send payments cheaply and efficiently across borders.

However, Ripple has in mind a much bigger use case than just sending money to family and friends living abroad. Ripple envisions a future where the XRP blockchain ledger could eventually replace the legacy SWIFT (Society for Worldwide Interbank Financial Telecommunication) payment network for financial institutions.

In an interview with Maria Bartiromo of Fox Business, Garlinghouse said SWIFT is 50-year-old technology that badly needs an overhaul. Right now, more than 11,000 financial institutions in 200 different countries use SWIFT every day. Imagine if the XRP token were suddenly at the heart of this thriving business.

Ripple's potential IPO

If all else fails, there's always a chance for a Ripple initial public offering (IPO). As of now, Ripple executives vigorously deny any plans to raise capital via an IPO. However, this topic continues to be raised within the XRP investor community.

Admittedly, until this year, a Ripple IPO would have been unthinkable. That's because Ripple has been engaged in an epic court battle with the Securities and Exchange Commission over the status of XRP. For more than four years, the SEC argued that XRP is a security and that selling it without registering it with the agency violated securities laws. But with the arrival of a pro-crypto White House, the SEC has changed its tune and now says that it is dropping its case against Ripple.

A Ripple IPO could potentially have a huge impact on the price of XRP. Theoretically, any capital raised could be used to build out the XRP payment network, acquire new digital assets, or expand business opportunities worldwide. And all that new activity would be enormously bullish for the price of the XRP token.

Can XRP really go to $10?

So just how realistic is this scenario of XRP quadrupling in value and hitting a price of $10? After all, in more than a decade, XRP has never once surpassed $4.

A lot obviously needs to go right. The good news, if you're an XRP investor, is that the SEC regulatory clouds have parted, and that has created a unique opening for Ripple to pursue potential fast-growth business opportunities.

Should you invest $1,000 in XRP right now?

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Dominic Basulto has positions in Ethereum, USDC, and XRP. The Motley Fool has positions in and recommends Ethereum and XRP. The Motley Fool has a disclosure policy.