XRP (XRP-USD) is one top cryptocurrency investors are clearly not sleeping on right now. This top digital asset (currently ranked #3 among all cryptocurrencies globally) has become a central holding of many investors, including those who may have disregarded the growth potential of this asset class for some time.
24/7 Wall Street Key Points:
- XRP has become one of the most prominent cryptocurrencies investors are looking at following the re-election of Donald Trump to the White House.
- Here’s why a $3 price target on this token looks like a reasonable level for investors to target in 2025.
- If you’re looking for some stocks with huge potential, make sure to grab a free copy of our brand-new “The Next NVIDIA” report. It features a software stock we’re confident has 10X potential.
Better late than never, some might say. The crypto rally we’ve seen over the past two years (since the 2022 crypto winter) has been remarkable, and this rally has only become emboldened with the re-election of Donald Trump to the White House. The pro-crypto president (who promises to be among the most crypto-friendly presidents in history) has clearly begun to shape his vision for who will help lead his efforts forward in developing a cryptocurrency policy focused on U.S. development. In that regard, XRP has been viewed as a key potential winner, given the network’s Ledger capabilities (allowing for near-instantaneous overseas money transfers at a very low cost). If the government endorses this technology, or chooses to use this technology for certain departments, it’s rally on for this top crypto.
So much so that some analysts foresee XRP reaching $3 in the near term and potentially exceeding this level if its momentum continues. Currently trading around $2.58 per token at the time of writing, I think a $3 price target for 2025 is very reasonable. Here’s why.
Catalysts for XRP On the Horizon
XRP parent company Ripple has certainly been in hot water under the previous administration, with an SEC lawsuit (actually filed during Trump’s first term in late-2020) resolved earlier this year. This regulatory overhang, in combination with expectations for a much, much more friendly regulatory environment for Ripple, XRP and the rest of the crypto community, are certainly key drivers of this token’s incredible outperformance thus far in 2024.
However, I think that (as mentioned) Ledger will continue to be the key catalyst investors focus on when it comes to XRP. Some have called this revolutionary technology one that could result in XRP’s overall ecosystem rivaling Ethereum’s. I might not go that far (we’ll have to see, of course), but there may be something to this view. The Ripple team has made a number of significant recent updates to its Ledger technology, introducing native smart contracts and the XRPL EVM sidechain. These moves have expanded XRP’s potential beyond cross-border payments.
Additionally, Ripple’s partnerships with networks like Cardano indicate its intent to remain at the forefront of blockchain innovation. Cardano founder Charles Hoskinson has become a key player for the Trump administration, in its goals of regulating crypto with a soft hand. Thus, being associated with one of the leaders of this regulatory revival is only a positive for XRP investors.
Finally, I think the network’s ability to scale and gain greater adoption will be a key factor that could drive this token’s outperformance in 2025. If scalability and adoption metrics continue to improve, XRP could see sustained growth driven by fundamentals. Unfortunately, unlike equities trading in the stock market, investors don’t have cash flow, revenue or earnings growth metrics to go on. But ecosystem growth and scalability/adoption metrics are possible to track, so investors will want to pay close attention to whether these numbers are improving or not over time.
XRP Price Target 2025
In my view, XRP’s current valuation certainly prices in plenty of adoption and ecosystem growth over time. With a market capitalization of nearly $150 billion, this would be an S&P 500 company if it were publicly traded. So, it’s important to point out the risks that obviously exist here – the bigger an asset gets, the harder it can fall.
That said, so long as fundamental growth metrics continue to improve and this momentum in the crypto space continues, I certainly think a $3 per token price target for 2025 makes sense. Based on the aforementioned catalysts on the horizon, XRP is one particular token I think could be among the safer bets in this space at least over the near-term.
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