The cryptocurrency market is vast and since the inception of Bitcoin, new technologies have emerged that introduce unique ways to transact across the blockchain. Ethereum, for example, introduced smart contracts, and Ripple is an interesting crypto project that is designed to work closely with traditional banks to replace the current global money transfer system.
Ripple's biggest competitors are not bitcoin and ether, but borderless payment companies like Western Union and Moneygram, as well as the international bank transfer system SWIFT. Additionally, Ripple faces its most powerful adversary while locked in an ongoing lawsuit with the SEC. The SEC lawsuit claims that XRP is a security, and Ripple and its executives are fighting back with all their legal might and resources.
The outcome of the case could have a dramatic impact on a Ripple forecast and the fintech industry for years to come. It could also set a precedent for cryptocurrencies to be considered securities. A positive outcome could lead to a bullish blowout, while a negative verdict could yield bearish results. Read the following Ripple price prediction guide to find out if XRP is worth your investment right now, or if it's too risky to consider right now due to the legal circumstances surrounding the popular top ten cryptocurrency by market cap.
What Is Ripple? (XRP)
Ripple is the global settlement system, open-source blockchain protocol, and remittance network launched by Ripple Labs Inc. in 2012. The Ripple blockchain ledger utilizes the native cryptocurrency XRP to move and exchange value across the network. According to Wikipedia, Ripple “supports tokens representing fiat currency, cryptocurrency, commodities, or other units of value such as frequent flier miles or mobile minutes.”
The maximum supply of XRP is 100,000,000,000 XRP, with 48,000,000,000 XRP coins currently on the market. The all-time low traded price of the coin sitting at only $0.002802, while the all-time high price of the asset being set in early January 2018 at $3.84 per coin.
The cryptocurrency was notoriously promoted in an article by CNBC while trading at highs, offering step-by-step instructions to users on how to buy Ripple at the very peak.
Ripple’s blockchain protocol, RippleNet, is designed to let banks access fast and low-cost cross-border transactions. It is a direct competitor to the Society for Worldwide Interbank Financial Telecommunication (SWIFT) system traditionally used by banks today.
Transaction costs are a fraction of a cent at 0.00001 XRP and take about five seconds to complete from sender to receiver. XRP, the native cryptocurrency of the Ripple protocol, can be used as a bridge currency. Transaction verification involves a bank-dominated consensus system where validators must verify transactions by comparing them against the latest version of the XRP ledger. A transaction is only verified if a majority of validators accept it.
RippleNet offers a variety of services targeting traditional financial institutions, including xCurrent, xRapid and xVia. xCurrent is the primary payment processing system for banks. xRapid allows banks and other financial institutions to use XRP as a bridge currency for other assets. While xVia allows the same entities to use XRP to minimize liquidity costs associated with sending payments by using XRP as a bridge between fiat currencies to send payments via RippleNet.
Ripple also leverages a technology called RippleX, which allows developers and startups to integrate Ripple blockchain technology into their applications built on the XRP ledger.
Ripple Launch And Origin Story
The concept for Ripple comes from Mt. Gox creator and Stellar founder Jed McCaleb. The technology was created by current Ripple CTOs David Schwartz and Arthur Brito in 2005, who turned to OpenCoin developer Ryan Fugger to work on what would eventually become the Ripple we know today.
Jed McCaleb left the project as CTO in 2013 and went on to found the Stellar network and XLM cryptocurrency. As a co-founder of the project, McCaleb held a large portion of XRP which has put consistent selling pressure on the cryptocurrency over the years and impacted the price of XRP negatively. Just recently, McCaleb was confirmed to have sold the last of his allocation in July 2022.
In 2013, Open Coin rebranded as Ripple Labs, and the new company decided to launch its own form of digital currency called XRP to allow financial institutions to transfer value across borders with low fees and incredibly fast transfer times. From that year, banks began to consider using it, and partnerships with banks and other payment companies grew steadily over the decade that followed.
In 2015, the company rebranded again, this time shortening its name to just Ripple. By 2018, more than 100 banks had signed up to use the Ripple protocol. However, experts are quick to point out that the same banks typically avoid XRP due to volatility issues. The large drop in value from the cryptocurrency bear market in 2018 so far reflects a failure to get sufficient support from the traditional banking system.
Banking partners include Barclays, BMO Financial Group, CIBC, Intesa Sanpaolo, Macquarie Group, National Australia Bank (NAB), Natixis, Nordea, Royal Bank of Canada (RBC), Santander, Scotiabank, Westpac Banking Corporation, Mitsubishi UFJ Financial Group, American Express and several others. RippleNet currently has more than 200 different members in over 40 countries. It is estimated that 38% of leading financial institutions have worked with Ripple to some degree.
In 2019, Ripple purchased a stake in MoneyGram and entered into a partnership to use Ripple's cross-border money transfer technology to facilitate overseas transactions. In early 2021, however, MoneyGram said it had discontinued using Ripple's ODR solutions following a Securities and Exchange Commission lawsuit against Ripple. A month later, Ripple announced it had reached a mutual agreement to end the partnership.
Ripple Controversy And The SEC Lawsuit
Ripple differs from other cryptocurrency projects in that it works directly with the traditional banking system. The crypto community also cites the apparent lack of decentralization and views it in direct opposition to the crypto movement.
The cryptocurrency community is not the only one that sees problems with sufficient decentralization. The US Securities and Exchange Commission has filed a lawsuit against Ripple Labs and its executives for issuing and selling unregistered securities to the public. The U.S. Securities and Exchange Commission's case against Ripple could ultimately determine the entire future of the crypto industry and how projects are defined for decades to come.
Under the Securities Act of 1933. The term "security" is defined as “any note, stock, treasury stock, security future, security-based swap, bond, debenture, evidence of indebtedness, certificate of interest or participation in any profit-sharing agreement, collateral-trust certificate, preorganization certificate or subscription, transferable share, investment contract, voting-trust certificate, certificate of deposit for a security, fractional undivided interest in oil, gas, or other mineral rights, any put, call, straddle, option, or privilege on any security, certificate of deposit, or group or index of securities (including any interest therein or based on the value thereof), or any put, call, straddle, option, or privilege entered into on a national securities exchange relating to foreign currency, or, in general, any interest or instrument commonly known as a "security", or any certificate of interest or participation in, temporary or interim certificate for, receipt for, guarantee of, or warrant or right to subscribe to or purchase, any of the foregoing.”
This lengthy legal jargon is still in use nearly 90 years later and is being applied to emerging financial technologies. Now Ripple has to defend in court that XRP is not a security. Ripple CEO Brad Garlinghouse says the case is going "extremely well," but has already cost the company as much as $100 million in legal fees.
The Securities and Exchange Commission (SEC) uses the so-called Howie test, stemming from the U.S. Supreme Court case SEC v. Howie, to determine whether an asset is a security. The guidelines suggest that an asset is a security if there is an investment of money, the investment is in a company or project where there is a pool of investor money, and a profit is expected. If the profit depends on the efforts of a related third party or promoter, then the asset is considered a security. In U.S. Securities and Exchange Commission v. Ripple, the Securities and Exchange Commission alleged that Ripple issued and sold a security - XRP - to investors who expected a profit based on Ripple's marketing and promotional efforts. Ripple sold $1.38 billion worth of XRP tokens to investors.
In December 2020, the SEC filed suit against Ripple Labs, CEO Brad Garlinghouse and co-founder Chris Larsen. The suit alleged that Ripple sold unregistered securities in a centralized environment, and accused the two senior Ripple executives of selling over 14.6 billion tokens for personal and business gain. US cryptocurrency exchanges immediately began delisting the cryptocurrency, which now risks being recognized as a security. At the time of writing, Ripple continues to defend itself in court, is optimistic and predicts a positive outcome.
Factors Behind Ripple Price Action: How They Influence XRP Price Predictions
Several factors influence the volatility of an asset at any given time and determine price action at any change in trend. Here are the main factors influencing XRP price forecasts.
The concept of supply and demand is important in any market, and demand for XRP has been weak over the past few years. After insane demand for the cryptocurrency at all-time high daily prices of over $3, the cryptocurrency remains down nearly 90% from those record highs to this day.
Demand for the cryptocurrency has never fully returned from retail traders. Thus, demand from banks should drive the majority of interest. Interest from banks in XRP has been low, despite banks partnering with Ripple to use its blockchain solutions.
The SEC's action also disrupted potential demand, limiting U.S. investors and leading to write-offs from cryptocurrency exchanges. Demand was further limited by investors fearing a negative verdict in the case.
If demand is weak, is supply a problem? With a current supply of 48 billion tokens in circulation, much of which is allocated to the company and team, supply is large compared to other cryptocurrencies. By comparison, Bitcoin only has 21 million coins. That's why XRP trades for less than $1, while Bitcoin trades for tens of thousands per coin.
Until recently, supply was even more of an issue, with co-founder Jed McCaleb dumping billions of coins on XRP investors after it reached an all-time high in January 2018. By July 2022, however, McCaleb had sold all of his coins. Could this shift in supply help reverse the trend if a positive outcome to the lawsuit is revealed?
Banking partnerships have a dramatic impact on the price of XRP. The cryptocurrency has seen a positive price rise associated with such announcements. Any large-scale banking implementation of XRP could have a huge effect on the price, demand and supply of the coin.
At the same time, the lack of positive movement in banking partnerships over the past few years, coupled with the SEC lawsuit and exclusion from crypto exchanges, has further damaged Ripple's image among banks.
As with all assets, especially risky or speculative assets such as cryptocurrencies, price action depends on macro conditions and correlations. The entire cryptocurrency market is collapsing, wiping out up to 70-90% of most crypto assets and altcoins. XRP remains more than 90% down from its previous all-time high.
The U.S. Federal Reserve's interest rate hikes have affected the stock market and cryptocurrencies have seen a current correlation. Cryptocurrency liquidations have triggered a cascade of contagions, forcing crypto companies into bankruptcy. With all the challenges XRP already faces, the macro environment isn't helping matters.
And of course, no factor could produce more significant results than the potential verdict in the SEC v. Ripple case. If the verdict is positive, prices could explode as demand rebounds in a significant way and the coin is relisted on exchanges. If the lawsuit is ultimately negative, Ripple could be in trouble, as could XRP holders.
Ripple Past Performance: A Complete Price History Of XRPUSD
Consistent price action and trading volume began for XRPUSD in 2013. Quickly after its debut the cryptocurrency grew to over six cents a token, then just as fast fell back down to under a penny. After several years stuck in this range, XRP has a sudden and abrupt breakout rising all the way to $0.36.
This was only one of two massive rallies in 2017, with the second rally pushing prices to $3.60 per token for a full 10x increase from the peak of the first rally. Ripple then experienced a brutal bear market and hasn’t ever been able to return to such highs.
XRPUSD reached its final bear market low on Black Thursday 2020 at around 12 cents per XRP. In the months that followed, XRP began a powerful rally, stopping at just under $2 per XRP. Today, XRP is trading again at around $0.35, or where it was at the top of the first pump in 2017.
How Is Ripple Doing Now?
The daily price of XRPUSD is currently $0.35 per coin. The token remains roughly 89 to 90% down from its former all-time high. Considering how severe the recent cryptocurrency crash was, XRP has held up quite well during this time compared to other assets. As other assets fell out of the top ten cryptocurrencies by market cap, XRP climbed higher. However, many are still reluctant to invest until the SEC lawsuit is over.
CEO Brad Garlinghouse continues to state that the case is going well, but the legal fees have since amounted to more than $100 million and counting. There is no telling how long the case could last or what type of damage has already been done to the reputation of Ripple and the XRP cryptocurrency.
Short-Term Ripple (XRP) Price Prediction 2022
XRP has struggled throughout 2022 thus far, but the worst could be over. The below chart displays automated Ripple price predictions month-by-month for 2022.
Long-Term Ripple (XRP) Price Prediction 2023, 2024, & 2025
Ripple at this point could win its court case with the SEC and could return to growth. The below chart displays automated Ripple price predictions quarter-by-quarter for 2023, 2024, & 2025.
Long-Term Ripple (XRP) Price Prediction 2026 - 2030
The future is bright for cryptocurrencies and in another five to ten years, anything is possible for XRP and other altcoins. The below chart displays automated Ripple price predictions year-by-year for the years 2026, 2027, 2028, 2029, & 2030.
Long-Term Ripple Price Predictions From Experts
Getting a wide range of expert opinions can help any necessary persuasion before investing in XRP. Remember that experts are human too and can be wrong. There is no way to accurately predict the future, and the opinions below are based on probabilities, not guarantees. Always do your own research in addition to reading the analysis of others.
The experts over at Changelly have predicted a minimum price target for XRP by the year 2030 at around $10.39, with the possible maximum peak for the cryptocurrency at roughly $12.32. The expert predictions are relatively close to the trajectory suggested in the tables above.
The analysis team from CoinPedia only goes as far as predicting out to 2025, but the forecasts are just as valid. CoinPedia expects “to work with more European and Latin American banks who will further promote both XRP and Ripple’s payment technology.” They continue that “such advances could lead to significant price changes in XRP.” Despite this, they give a max target of only $2.213. They also suggest a possible low at $1.1302.
PricePrediction.Net has the most bullish targets for XRP of all, with the controversial token primed to reach as much as $17.96 by 2031. This also represents the further-looking price target out of all the aggregated experts.
Ripple Price Prediction By Margex Technical Analysts
Using the technical analysis tools built directly into the Margex trading platform, the in-house team of expert analysts have provided their own take on the future price of Ripple. Please note, this is not investment advice and price predictions are subject to change. Always do your own research and never invest more than you can comfortably afford to lose.
XRPUSD is forming a large bullish divergence on the weekly RSI. If the divergence confirms and Ripple can win its SEC case, the result could be a strong and unexpected rally taking Ripple to new all-time highs near $5 per token by 2025.
Ripple is a blockchain protocol and borderless payment technology. XRP is the native cryptocurrency of the Ripple network. Because Ripple and XRP are not the same thing, many questions remain.
This FAQ is designed to answer commonly asked questions related to XRP and Ripple price predictions.
Will Ripple go up in 2022?
Ripple is sitting back at prices from 2017 so there is a strong chance for Ripple to go up in 2022, especially if this is the year that Ripple wins its court case against the United States SEC or if there is some type of major banking partnership announced.
Is Ripple worth investing in 2022?
Because of the lower risk and higher reward setup in Ripple, it is worth investing in XRP if you aren’t a US-based investor. If you are in the US, Ripple is currently caught up in an SEC lawsuit that could impact the accessibility of the asset in the country and further impact the price action negatively.
What will Ripple be worth in 2025?
According to a variety of expert, technical, and automated analysis, XRPUSD could be worth between $1 and $4 by the year 2025. It appears that it isn’t until much later before XRP begins to set substantial new highs.
What will be the value of Ripple in 2030?
By the year 2030, analysts have set targets of anywhere between $2 and $12 per XRP token. This would either involve some type of major adoption with banks, or another XRP breakthrough.
Will Ripple be the next Bitcoin?
Ripple cannot and will not be the next Bitcoin. Bitcoin is a decentralized cryptocurrency with a scarce supply of only 21,000,000 BTC and no team behind it or intermediary involved, while XRP is a token created and operated by Ripple Labs. Bitcoin is considered a commodity, while XRP is currently accused of allegedly being a security. There is also 100,000,00,000 XRP as a max supply, so prices of XRP can never get higher than that of Bitcoin.
Can Ripple overtake Bitcoin?
XRP could overtake Bitcoin in market cap and rank out of all cryptocurrencies, but due to the way the supply is set up, there isn’t a way that XRP could surpass BTC in price per coin. At 21 million compared to 100 billion, substantially more capital would be required to create price parity between the two coins.
Can XRP reach $10?
Considering the targets outlined by analysts across the industry, XRP could very well reach $10 and represents only a 3x from the asset’s former all time high set in 2017. If crypto adoption picks up pace, XRP could ultimately reach such prices.
How big can XRP get?
XRP could become enormous if it beats many of its competitors. The international money transfer market generates more than $590 billion in low and middle-income economies as well as another $450 billion in developing countries, according to the International Monetary Fund. It also could replace SWIFT, Western Union, MoneyGram, and other cross-border payment tools.
Is Ripple backed by gold?
Ripple and XRP are most definitely not backed by gold or any other asset. However, gold is one of the many commodities that can be represented by the XRP token.