XRP Is Down 60% and Losing Ground. Here's What the Next 4 Years Could Realistically Look Like.

XRP (CRYPTO: XRP), the native cryptocurrency of the XRP Ledger, hit its all-time high last July. But since then, it's declined more than 60% and continues to underperform other top cryptocurrencies. Let's see what the next four years might look like for this volatile token.

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XRP overcame its biggest challenges, but lacks long-term catalysts

Over the past six years, the biggest headwind for XRP was the Securities and Exchange Commission's (SEC) lawsuit against Ripple, whose founders created XRP. However, that lawsuit concluded last year with a lighter-than-expected fine and a ruling that XRP wasn't an unlicensed security when sold to retail investors.

Earlier this month, the SEC went a step further and classified it as a digital commodity instead of a security. That reclassification, along with the approvals of its first spot-price ETFs in late 2025, will make it much easier for retail and institutional investors to increase their exposure to XRP.

But looking ahead, XRP lacks major catalysts. It was primarily used as a bridge currency to settle fiat transactions on Ripple's blockchain, but stablecoins can now achieve the same thing with even less volatility. It also can't be valued by its scarcity like Bitcoin, and it doesn't natively support smart contracts for the development of decentralized apps.

Without enough catalysts on the horizon, I suspect XRP will trade sideways or slide lower over the next four years as the market focuses on Bitcoin, Ethereum, and other blue chip tokens with clearer long-term strengths. It might gain more exposure as Ripple expands its fintech ecosystem, but I'm not optimistic about its long-term prospects.

Leo Sun has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Bitcoin, Ethereum, and XRP. The Motley Fool has a disclosure policy.