If you had invested $10,000 in XRP (XRP 1.09%) in 2021, your investment would now be worth an astonishing $118,000, showcasing the transformative potential of cryptocurrency investments. In contrast, the S&P 500 would have yielded a modest return of only $20,000 during the same period. Nevertheless, with XRP’s market capitalization surpassing $138 billion, sustaining such rapid growth may prove to be more difficult going forward. This article delves into whether recent regulatory victories and a rise in institutional interest could be pivotal for XRP’s future success.
### Investors are feeling optimistic again
Although XRP remains approximately 38% lower than its peak price of $3.84, reached in 2018, there has been a significant uptick in its price, more than doubling in the last six months. This resurgence has rekindled investor optimism. The U.S. government, under the Trump administration, has adopted a more favorable approach toward the cryptocurrency sector. In March, President Trump signed an executive order aimed at establishing a Strategic Bitcoin Reserve and Digital Asset Stockpile to retain cryptocurrencies that are often seized in civil or criminal asset forfeitures. This initiative would not only grant legitimacy to these digital assets but could also alleviate selling pressure, as the reserves would hold cryptocurrencies instead of converting them into cash.
### XRP’s path to mainstream adoption
The long-term viability of XRP hinges on its ability to be embraced widely, both as a financial asset and for practical applications. Fortunately, XRP has certain advantages over its main competitors. While Bitcoin was designed primarily to serve as a store of value and a medium of exchange, XRP focuses on the potentially lucrative international payments market, currently dominated by outdated systems like the Society for Worldwide Interbank Financial Telecommunication (SWIFT), which has been in operation since 1973. Although it may take time for Ripple and XRP to significantly challenge SWIFT, they offer a compelling option for small businesses and individuals looking for faster and more cost-effective transactions. According to Business Insider, sending an international wire transfer can cost anywhere from $15 to $30 and may take up to five days to settle. Additionally, dealing with different currencies can introduce further costs and complications. XRP addresses this issue by acting as an intermediary. For instance, if someone in the U.S. wants to send dollars to Japan, they can convert their dollars into XRP and then use that XRP to purchase Japanese yen.
To put things into perspective, virtually all cryptocurrencies can serve this function, but XRP distinguishes itself with its remarkably low transaction fee of just 0.00001 XRP, which amounts to a fraction of a cent. In contrast, Bitcoin transactions currently cost about $1.50, while Ethereum transactions are around $0.25, with these fees often increasing significantly based on network congestion.
### Is XRP a millionaire-maker cryptocurrency?
With a current token price of approximately $2.38, XRP appears to be quite affordable compared to other prominent cryptocurrencies like Bitcoin and Ethereum, which are priced at $105,500 and $2,520, respectively. However, this observation only offers a partial view. Boasting a market cap of $138 billion, XRP ranks as the fourth-largest cryptocurrency globally. Its substantial size suggests that it may not replicate the explosive returns it experienced over the past five years. As an asset grows, achieving similar growth becomes increasingly challenging. Nonetheless, XRP’s recent regulatory victories and potential for widespread adoption in the international payments space could position it for sustained success in the market.
