In the world of cryptocurrencies, not many tokens have captured attention quite like XRP did. XRP is the native currency of the Ripple network, which aims to facilitate secure, low-cost, and fast international payments. Compared to cryptocurrencies that have a more general purpose, such as Ethereum, Bitcoin, and Litecoin, XRP was created to be used for financial transactions, and due to its features, it is ideal for payment providers, banks, and other financial institutions. Due to the consensus protocol it uses, XRP can complete transactions within just 4 seconds.
However, as with other cryptocurrencies, XRP has experienced significant volatility, and a lawsuit between federal regulators and XRP’s developer has made things even worse since late 2020. Still, the price of XRP has seen a 15,000% increase during its lifetime, and over 300% of this rise has happened since the election. The Trump administration has shown support for cryptocurrencies, which has bolstered sentiment for many tokens, including XRP. According to xrp news today, Ripple’s native token is the fourth-largest one by market cap, and there’s a question that comes to mind when thinking about XRP’s potential: can it make you a millionaire, or is it running out of steam? Let’s find out below.
How is XRP doing from a regulatory perspective?
XRP’s performance is outstanding in light of a persistent lawsuit by the SEC. The SEC sued Ripple because it categorized XRP as a security and stated that Ripple’s sale of tokens was not a registered securities offering. In July 2023, the judge in Ripple’s case ruled that XRP was a security not when it was sold to individuals on exchanges but when sold to institutions. After the SEC appealed the ruling, Ripple experienced a partial win, and that’s where it stands now in the regulatory landscape.
However, the Treasury Secretary and head of the SEC showed support for cryptocurrencies, and President Trump has further backed that up with his plan to establish strategic digital asset reserves. Regulators have started to close out litigation against some companies that deal in crypto assets, and while Ripple’s case still stands, it’s empowering to see regulators easing their stance against the cryptocurrency sector.
If the lawsuit against Ripple ends successfully, the XRP price could be appreciated, but that potential’s extent will only come down to the demand XRP sees from real-world use. Currently, institutions embrace XRP for transactions, although that’s not the case for all of them, as some use it not for the XRP token but for Ripple’s blockchain. However, this could change if Ripple’s regulatory standing gains more certainty. Meanwhile, its blockchain is experiencing upgrades that could further improve the case for using XRP.
Can you become a millionaire by investing in XRP?
XRP currently has a $127.058B market cap, but it’s unlikely to make investors rich overnight. Replicating its lifetime returns would increase its cumulative market value to trillions of dollars. However, there remains upside potential for it if it becomes a key contributor to a growing digital economy during the following years.
It’s essential to keep an eye on how Ripple’s lawsuit goes and look for any signs of a resolution. Only after that can financial institutions decide whether to boost XRP’s adoption of international payments. If this scenario plays out, XRP could turn out to be a profitable investment. That said, don’t forget that the crypto market is often a wild ride, and XRP is no exception. Many factors come into play when it comes to a project’s performance, and what’s happening in government as well as across the crypto space, and, of course, within the lawsuit of Ripple, can all play a role in how things will unfold for XRP.
One major catalyst that could fuel XRP’s price growth is the crypto reserve that President Donald Trump proposed. While the official order talks about Bitcoin as the main asset in the reserve, Trump stated on his social platforms that XRP will be among the other coins included in the reserve. There’s been, however, some debate in the industry as to whether including more volatile and smaller assets in the reserve is a good idea, and the news didn’t impact XRP’s price
considerably. However, things could change down the road, as more financial institutions could start to acknowledge XRP as more of a legitimate digital asset to own as long as the U.S. government holds it in reserve. While there are still many unknown things about the digital strategic reserve, if there’s a substantial amount of XRP in it or more will be included, the coin’s value will clearly get a boost.
Crypto prices have experienced boom-and-bust cycles throughout the time. This is something to keep in mind when investing in XRP and any other digital asset because it will help you use sound judgment and not become overly optimistic nor let yourself succumb to fear and other emotions that could prevent you from making wise decisions. While an optimistic scenario isn’t out of the question for XRP’s future, its price could also drop, and this is because its volatility could be amplified amid near-daily policy changes from the Trump administration. For instance, Trump has threatened massive tariffs on Canada and Mexico over the past two months; however, it has retreated twice from doing so at the last minute. That has led to significant angst among investors, who need to know where they should put their money. This uncertainty could hurt crypto prices, as investors may focus on safer places when it comes to investing. That said, XRP’s price could rise higher over the following year in a supportive regulatory environment if the coins see further institutional approval.
Ultimately, if you decide to invest in XRP (which should happen after assessing your risk tolerance, personal circumstances, and financial goals), the best approach is to diversify your portfolio and buy the token slowly and steadily while anticipating price volatility in both directions.
The bottom line
While XRP has seen a substantial surge since its inception and has had an outstanding performance at times, you shouldn’t disregard volatility. While big opportunities can arise in the crypto space, there are also many challenges and risks, so it’s important to be prepared for both and approach the market smartly so you can minimize losses and maximize profit.