Prediction: XRP Will Be Worth This Much in 5 Years

Within five years, XRP (CRYPTO: XRP) could be a $750 billion digital asset. On the surface, that might sound like an impossibly high, pie-in-the-sky prediction. It would require XRP to quintuple in price, from a little more than $2 to $10, within a relatively short period of time.

However, a number of key catalysts are starting to come together in a way that could light a fire under the price of XRP. Another key catalyst was just announced on June 12 at the XRP developer event in Singapore, and it has me incredibly bullish on XRP's future price trajectory.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More »

XRP emerges from behind a regulatory cloud

The first thing you need to know about XRP is that, for more than four years, it has been under a regulatory cloud. In December 2020, the Securities and Exchange Commission (SEC) claimed that XRP was a "security." That led to a long, bruising legal fight that only wrapped up in May.

Along the way, it's estimated that San Francisco-based Ripple, the company behind the XRP token, spent more than $200 million in legal fees. Moreover, access to the U.S. market was essentially closed off until the SEC case was finally settled, and Ripple had to shift its focus to international operations.

Image source: Getty Images.

But, under a crypto-friendly Trump administration, Ripple (and XRP) are likely to flourish. All the projects that had been put on hold for years can now be restarted. And, with the regulatory shackles removed, Ripple is now free to go back to business as usual. So this is the first key to unlocking value at XRP.

New spot ETFs

The second catalyst involves new spot exchange-traded funds (ETFs) for XRP. These have been delayed, due to the seemingly never-ending SEC court battles, but it now looks like these spot ETFs could be coming by the end of the year.

Several major investment companies have already filed spot XRP ETF applications with the SEC. Now that Bitcoin (CRYPTO: BTC) and Ethereum (CRYPTO: ETH) have spot crypto ETFs, the thinking goes, XRP will be the next major cryptocurrency to get one. According to online prediction markets, there is now an 88% chance that a spot XRP ETF will be approved by the end of the year.

Once these spot XRP ETFs start trading, they could result in a huge amount of new money moving into XRP. JPMorgan Chase (NYSE: JPM) predicted at the beginning of the year that as much as $8 billion in new money could pour into XRP via ETFs.

XRP disrupts SWIFT

The third catalyst is arguably the most exciting. At the XRP developer event in June, Ripple Chief Executive Officer Brad Garlinghouse said that XRP would eventually handle 14% of worldwide SWIFT (Society for Worldwide Interbank Financial Telecommunication) bank transaction volume within the next five years.

Let that sink in. Annual transaction volume for SWIFT is projected to be close to $150 trillion. So, 14% of that total is $21 trillion. That's a huge new market opportunity for XRP. You can think of this as the total transaction volume potentially flowing through the XRP blockchain every year.

To understand what this means for the price of XRP, you need to take into account XRP's token supply, the velocity of money zipping around the XRP blockchain, and how often XRP tokens can be "recycled" from transaction to transaction.

When you crunch all the numbers, the potential price effect on XRP is eye-popping. According to an AI-powered valuation model used by The Crypto Basic, this new market opportunity might lead to a price of $12 for XRP, based solely on this one catalyst.

During an interview with Fox Business's Maria Bartiromo earlier this year, Garlinghouse said that the infrastructure of the modern global financial system is moving to blockchain technology. SWIFT, as Garlinghouse points out, is based on a legacy technology that's now 50 years old.

So, this is the final piece of the valuation puzzle: A disruption of the SWIFT payment network with better, faster, and cheaper blockchain technology from XRP (Ripple).

What needs to happen next for XRP?

Obviously, a lot needs to happen for XRP to skyrocket to a $750 billion valuation. First, the SEC needs to approve the new spot ETFs by the end of this year. Second, Ripple needs to provide more evidence that XRP really has the potential to disrupt SWIFT.

But, if anything, a five-year timeline might end up being too conservative. After all, Standard Chartered recently predicted that XRP would hit a $750 billion valuation within the next three years. It really depends on the pace of institutional adoption of XRP's payment technology.

Most likely, the global financial system will look a lot different in five years. If XRP is able to insert itself into this discussion in a meaningful way, it could be the key to unlocking hundreds of billions in value for the world's fourth-largest cryptocurrency.

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

Before you buy stock in XRP, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and XRP wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $660,821!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $886,880!*

Now, it’s worth noting Stock Advisor’s total average return is 791% — a market-crushing outperformance compared to 174% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of June 9, 2025

JPMorgan Chase is an advertising partner of Motley Fool Money. Dominic Basulto has positions in Bitcoin, Ethereum, and XRP. The Motley Fool has positions in and recommends Bitcoin, Ethereum, JPMorgan Chase, and XRP. The Motley Fool has a disclosure policy.