Ripple (XRP) is a unique cryptocurrency that is attracting a lot of attention because of how it could change the financial industry in the future. Ripple uses blockchain technology to expedite the transfer of funds between banks, resulting in transactions that take seconds instead of days.
The company has been working hard to get large financial institutions to see the benefits of transferring funds across the world in XRP, rather than the current standard of using the US dollar as a reserve currency. Because of its ability to act as a liquidity solution for cross-border transactions, the financial overhead for these transactions could be massively reduced, and savings passed on to the customer.
Here’s a peek at how the XRP price trend looks now, moving into 2020, and a decade from now in 2030, should XRP achieve its goal of becoming the standard cryptocurrency used to exchange funds across the globe.
Note: This article is not intended to be investment advice. Conduct your own research and speak with a financial advisor before making any investments in cryptocurrency.
General XRP Predictions
* Because XRP is a more effective exchange service than the current SWIFT method of transfer, one Ripple price prediction is that the cryptocurrency is expected to rise in value as larger financial institutions get on board with the cryptocurrency.
* XRP can handle 1,500 transactions per second, while Bitcoin (BTC) is only capable of handling around seven transactions per second. Another Ripple price prediction is that the cryptocurrency could rise rapidly in value as it provides instant international transactions with wide-spread adoption.
* XRP’s CEO believes that dozens of banks will adopt the XRP standard for currency exchange in 2019.
XRP Price Predictions for 2018
Any Ripple price prediction is highly dependent on whether or not major financial institutions finally implement XRP as a means of currency exchange. XRP’s CEO is optimistic about those chances, but of course, he’s paid to be.
One concerning factor for XRP’s adoption is the volume people trade. Both Bitcoin and Ethereum have seen rises in trade volume as cryptocurrency prices have fallen over the course of 2017. Trade volume for XRP has been in a steady decline, which suggests XRP may not be ready to break out until more financial institutions are on board.
Part of the problem is that not many mainstream cryptocurrency exchanges allow their customers to buy XRP. XRP is notably missing from Coinbase, one of the largest and most well-known cryptocurrency exchanges in the United States.
Rumors suggested Coinbase could be adding support in March of this year, but Coinbase flatly denied those rumors and added support for Ethereum Classic (ETC) instead. In that time, XRP’s price dropped dramatically.
Prices for XRP have ping-ponged back and forth as BTC rises and falls. However, this early point in XRP’s lifespan might be a good point for entry for those who believe a decentralized means of transferring money is a revolutionary concept.
XRP Price Predictions for 2020
A Ripple price prediction for 2020 and beyond depends on whether or not the cryptocurrency has been classified as a security. Ripple attempts to operate as a cryptocurrency, but it is a company-owned and centralized cryptocurrency. Ripple Inc. owns about 55 billion coins, with CEO Brad Garlinghouse owning a 6.3% stake in the company.
If the SEC at any point determines that XRP is a security rather than a decentralized cryptocurrency, the value for XRP will likely drop. That’s part of the reason Ripple is pushing so hard to get financial partners onboard with using the cryptocurrency as a means of currency exchange.
If Ripple manages to convince major banks to begin broad adoption of XRP, it’s possible the currency could skyrocket in value to the upper $20 limit.
This Ripple price prediction is a very big if scenario though and depends on how the coin fares with the SEC’s security ruling and major cryptocurrency exchanges.
Ripple investors and enthusiasts expect the cryptocurrency to take a hit should the SEC move to take action, but some analysts believe the cryptocurrency can weather the blow.
XRP Predictions in 2030
It is hard to predict what a cryptocurrency will be doing ten years from now, so we must take some hypothetical situations to determine how Ripple price prediction will play out in the future.
If the SEC does declare XRP a security, it’s likely we will still see moderate growth of XRP as a cryptocurrency based on being the third largest cryptocurrency by its market cap. Growth will depend on whether or not major financial institutions have embraced the XRP technology for cross-border transfers.
If the SEC does not declare XRP a security and they list it on Coinbase, we could see a rapid rise in the trading volume, which would increase the price as more cryptocurrency investors come in contact with the coin. Price ranges are hard to predict in this scenario given how quickly other cryptocurrencies have risen, but prices could be anywhere from $20 to $100 depending on adoption rates.
In the best case scenario where XRP has experienced widespread adoption in the financial industry, XRP’s value could eventually surpass that of BTC and ETH. One factor keeping XRP’s prices relatively low is the sheer number of tokens that people can distribute on the network. Prices for individual tokens may remain below $100 well into the 2020s.
XRP Volatility Overview
All cryptocurrencies are inherently volatile, thanks to the nature of the decentralized blockchain and 24/7 access to trading and news cycles. XRP is more volatile than most cryptocurrencies for a variety of reasons.
Just like most cryptocurrencies, the news cycle can have a massive effect on whether the cryptocurrency is in demand or is experiencing a sell-off. Even news not related to Ripple can affect XRP’s price, as people move in and out of cryptocurrencies.
The volume of trades happening that day can impact the volatility, too. However, this is less of a concern for financial institutions who will be using the currency to process transactions in a matter of seconds, rather than a matter of minutes.
Ripple CEO recently spoke at the M2020 Asia conference and said financial institutions would be exposing themselves to “about three seconds of volatility risk” when using XRP compared to traditional means. He followed up that statement by saying:
the reality is you’re exposed to more volatility when doing a traditional transfer with fiat currencies that takes several days.
For financial institutions using the currency to make transactions, there is very little volatility to consider. However, traditional investors who are hoping to buy and hold should be more wary about the volatility of this cryptocurrency before investing based on a Ripple price prediction.
A lot of price predictions for XRP as a cryptocurrency hinge on whether or not the SEC decides that XRP is operating as a cryptocurrency rather than a security. So far they’ve been quiet on the matter, but the looming discussion is one reason Coinbase hasn’t opted to add XRP to its trading platform just yet.
XRP has deflated in value from its meteoric rise in 2017, but that doesn’t mean the token will have a price well under $1 several years from now. There are a lot of factors at play, and early investors would be wise to understand all aspects of XRP. This cryptocurrency faces an uphill challenge in becoming a serious contender to replace aging systems like SWIFT and VISA in the financial industry.
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