Key Points
Morningstar analysts project the cryptocurrency sector will advance at 9% per year through 2034, though XRP may expand at a faster pace across the next five years.
Ripple leverages XRP for rapid, low-cost international transfers, and the new Ripple USD stablecoin strengthens the overall platform.
The SEC is set to decide on spot XRP ETFs by late October, with potential approval boosting prices substantially in coming years.
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XRP (CRYPTO: XRP) has climbed 725% over the past three years, with the bulk of gains occurring in the past 12 months after President Trump's election and the SEC ending its case against Ripple, the fintech firm using the XRP blockchain for business payments.
Geoff Kendrick at Standard Chartered foresees further increases as XRP integrates more deeply into worldwide finance and ETFs draw additional capital. He projects XRP hitting $12.25 by 2029, suggesting 315% growth from the current $2.95 level, or roughly 43% yearly returns.
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That outlook appears too bold. Morningstar analysts see the wider crypto market rising 9% annually through 2034, a sensible view that tracks long-term global equity returns. XRP, the third-largest digital asset, should beat the broader market but not at the rate Kendrick suggests.
Investors ought to stay measured: At 20% annual returns over five years, XRP would climb about 150% to $7.35 by late 2030. ETF approval stands as the key driver in this view, though wider business use remains possible to a limited extent.
Here is what investors need to understand.
Image source: Getty Images.

Ripple CEO Brad Garlinghouse sees major XRP uptake in the next five years

Fintech firm Ripple delivers cross-border payment tools to institutions and companies. Its On-Demand Liquidity service employs the XRP token as an intermediary asset to speed up and cut costs versus conventional wire methods tied to the SWIFT network.

Ripple CEO Brad Garlinghouse recently forecast that XRP could take 14% of SWIFT's cross-border volume within five years. Yet that claim invites doubt. While many banks use Ripple Payments overall, few rely on the ODL feature.

Most clients therefore avoid XRP for transfers. It rarely makes sense to route funds through a fluctuating token that might drop sharply in the brief window of settlement.

Ripple tackled volatility by introducing the stablecoin Ripple USD. Still, it competes with bigger options such as USDC and Tether.

XRP demand would rise if more entities route payments across its blockchain, theoretically lifting prices since fees settle in XRP. This holds regardless of the bridge token chosen. Even so, XRP remains volatile and RLUSD trails other stablecoins, weakening this aspect of the case.

Spot XRP ETF approval may spark investor interest

Multiple managers aim to launch exchange-traded funds tracking the spot XRP price. The SEC has received at least eight filings, with most deadlines falling in late October 2025. Eric Balchunas at Bloomberg assigns a 95% chance of approval.

Spot XRP ETFs could ease access for retail and institutional buyers by removing exchange hassles and high costs. Users would skip separate crypto accounts and steep fees. Fresh demand could lift prices.

Bitcoin has gained 140% since its spot ETFs gained approval roughly two years ago. The iShares Bitcoin Trust ranked as the top ETF debut ever by inflows, per The Wall Street Journal. Spot XRP ETFs may draw less notice, yet XRP could still more than double over five years.

Buyers must weigh risks first. XRP has shown sharp swings, dropping over 35% from peaks three times in three years. Those wary of volatility should steer clear.

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

Before purchasing XRP, weigh this:

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Trevor Jennewine holds no positions in mentioned assets. The Motley Fool owns and recommends Bitcoin and XRP. The Motley Fool recommends Standard Chartered Plc. The Motley Fool maintains a disclosure policy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.