XRP (XRP) is one of the few cryptocurrencies with practical application scenarios, developed by Ripple. The payment network created by the company aims to help banks achieve fast cross-border transfers at low costs.
In 2025, Ripple made significant progress by reaching a settlement with the U.S. Securities and Exchange Commission (SEC), ending a prolonged legal dispute. Simultaneously, the first XRP spot ETFs were approved for trading in the United States, bringing new demand for the token. These positive developments drove XRP to a seven-year high in July, but the price subsequently fell by over 40%. The token faces structural challenges and may continue to experience downward pressure in the future.
The traditional banking system relies on different payment infrastructures. Some banks settle through the SWIFT network, while others require intermediaries, leading to extended transfer times and increased costs. Ripple Payments facilitates direct communication between financial institutions, enabling instant cross-border settlements without the need for intermediaries, thereby reducing costs.
XRP was designed to standardize transaction processes. For example, a French bank can send XRP to a Korean bank, avoiding foreign exchange conversion fees, with extremely low costs per transfer. Unlike cryptocurrencies generated through mining, XRP is issued directly by Ripple. In 2020, the SEC sued Ripple over this, alleging that XRP should be classified as a security. This lawsuit threatened Ripple’s business model and suppressed the price of XRP for years. It was not until the settlement in 2025 that the price of XRP surged significantly to $3.65, but the subsequent upward momentum did not last.
XRP is currently priced at approximately $2.08, down over 40% from its peak. Reflecting on the nearly 90% decline after the 2018 historical high of $3.84, a similar magnitude of adjustment could occur again.
Although XRP is part of the Ripple payment network, banks using the network do not necessarily rely on XRP, as the system also supports fiat currencies. This means that even if Ripple’s payment solution is widely adopted, the value of XRP may not necessarily rise accordingly. Furthermore, as a bridge currency, XRP is often quickly exchanged for fiat currency in transactions, and the persistent selling pressure limits its appreciation potential.
In 2024, Ripple launched the stablecoin Ripple USD (RLUSD, exchange rate 0.04%), whose zero-volatility characteristic makes it more suitable for payment scenarios. Although transactions involving RLUSD on the XRP ledger generate minimal XRP fee demand, this is unlikely to significantly drive the long-term price of XRP.
Considering the above factors, the price of XRP could potentially fall by 90% from recent highs over the next five years, reaching around $0.36.
