Prediction: XRP (Ripple) Will Be Worth This Much in 12 Months

The XRP (CRYPTO: XRP) cryptocurrency was created in 2012 by a company called Ripple. It is designed to standardize transactions in the Ripple Payments network, which allows banks to send money across borders instantly, and with negligible costs.

Unlike most cryptocurrencies, XRP has a genuine use case that could create real long-term value. In fact, it was one of only a few coins that soared to a record high during 2025, while many others are still trading below their best levels from several years ago.

However, XRP is trading in the red so far in 2026, and it's down 60% from last year's peak of $3.65. The coin is struggling to overcome some structural issues that could weigh on its value from here, so with that in mind, here's how much I predict it will be worth in 12 months.

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Ripple is very different from most major cryptocurrencies

The global financial system is fragmented. Many banks use the highly efficient SWIFT (Society for Worldwide Interbank Financial Telecommunication) network, but others don't, which means they have to use intermediaries to settle transfers from one another. This adds time, not to mention costs.

Ripple Payments was designed to facilitate direct communication between banks so they can cut out intermediaries and settle transactions with one another instantly. XRP was created as a bridge currency to standardize each transfer. For example, an Australian bank might send XRP to an American bank instead of Australian dollars, cutting out costly foreign exchange fees. The XRP-based transaction would typically cost about 0.00001 coins, or a fraction of one U.S. cent.

However, XRP differs from almost every other leading cryptocurrency precisely because of its tie-up with Ripple. The company still controls about 38 billion of the crypto's 100 billion coins, which it's slowly releasing to meet demand from banks and institutions. This makes XRP a centralized cryptocurrency, so investors who buy it must have faith in the operational success of Ripple, because their fates are very much intertwined.

Bitcoin (CRYPTO: BTC) is one example of a decentralized cryptocurrency, which means it can't be controlled by any person or company. Its supply is capped at 21 million coins, and this can never be changed. Those coins are issued through a process called "mining," which involves using powerful computers to solve complex mathematical problems for the right to validate transactions and add new blocks to Bitcoin's system of record, the blockchain.

This is why XRP faced regulatory pressure from the U.S. Securities and Exchange Commission (SEC), and Bitcoin didn't. Given XRP is issued by Ripple, the SEC argued the coin should be classified as a financial security, just like stocks and bonds, which are also issued by companies. These legal issues were settled last year as part of the Trump administration's pro-crypto agenda, but investors should still be wary about buying centralized tokens like XRP.

Here's where XRP could be in 12 months

Broadly speaking, the entire cryptocurrency market has been under pressure during the past six months or so, as investors reduced their exposure to highly speculative assets. However, the 60% decline in XRP can also be attributed to a series of structural issues that might be difficult to overcome.

First, banks don't have to use XRP to benefit from instant cross-border transactions through Ripple Payments, because the network also can accommodate fiat currencies. That means the value of XRP won't necessarily increase even if Ripple Payments experiences growing adoption.

Second, Ripple offers its own stablecoin called Ripple USD (CRYPTO: RLUSD). Stablecoins are designed to maintain a steady value with practically zero volatility, so they are extremely useful as bridge currencies. Therefore, Ripple USD could displace XRP in the Ripple Payments network. The stablecoin was built on the XRP Ledger, though, so any fees incurred when using it are still payable in XRP.

Third, bridge currencies aren't good investments. In my earlier example, the Australian bank would be a buyer of XRP tokens, but the American bank would be an equal seller when it converts them into U.S. dollars upon receipt, which it would have to do in order to carry on with its business. Therefore, this transaction would create no real value.

Before 2025, the last time XRP soared to a new record high was in 2018. It plunged by 95% in the two years that followed, reaching a low of $0.15 per coin. Given the headwinds discussed above, I think a similar decline is underway right now, which could see XRP sink to about $0.15 yet again over the next year or so.

As a result, investors might want to think twice before betting the farm on this cryptocurrency.

Anthony Di Pizio has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Bitcoin and XRP. The Motley Fool has a disclosure policy.