In a recent report, Standard Chartered’s Geoffrey Kendrick, the global head of digital assets research, has initiated coverage on XRP, the digital asset created by Ripple, with a bold forecast that suggests the cryptocurrency could see a remarkable surge in value over the next few years.
According to Kendrick, XRP is poised for a multi-year price rally, driven by its expanding role in payments and tokenization use cases.
A Glimpse into XRP’s Future Growth
Kendrick’s forecast predicts that the price could rise more than 500%, from its current price of around $2 to an impressive $12.50 by 2028. This forecast is based on the assumption that XRP will continue to gain traction in the digital asset market, bolstered by key developments in the regulatory landscape, institutional adoption, and the growing use of digital currencies for cross-border payments and tokenization.
By the end of 2028, Kendrick expects XRP’s market capitalization to surpass that of Ethereum, making it the second-largest non-stablecoin digital asset, just behind Bitcoin. Kendrick also highlighted that, assuming Bitcoin reaches $500,000 within the same period, XRP is likely to maintain relative performance even amidst higher inflation, which would further boost the appeal of the altcoin.
Key Drivers Behind XRP’s Forecasted Growth
Kendrick’s bullish outlook for XRP can be attributed to several key factors that are expected to drive the digital asset’s growth in the coming years:
1. Regulatory Clarity and Legal Developments
One of the most significant factors contributing to XRP’s anticipated rise is the favorable resolution of its legal case with the U.S. Securities and Exchange Commission (SEC). Ripple CEO Brad Garlinghouse recently announced that the SEC had dropped its appeal in the ongoing lawsuit over whether the altcoin is classified as a security. This development has provided significant optimism to investors, and Kendrick expects further regulatory clarity as the political climate becomes more crypto-friendly following recent elections.
Kendrick also anticipates that the SEC will approve XRP-based spot ETFs by Q3 2025. The approval of these ETFs could result in an influx of institutional investments, potentially bringing in $4-8 billion in the first year alone.
2. Institutional Adoption of XRP
XRP’s utility in facilitating cross-border and cross-currency payments positions it well within the broader financial ecosystem. According to Kendrick, the adoption of digital assets, especially for cross-border payments, mirrors the fast-growing use of stablecoins, whose transaction volumes have been increasing by 50% annually. As institutional investors continue to embrace digital currencies, XRP stands to benefit from its established use case and strong network effects.
3. Expansion into Tokenization
Ripple is also expanding its focus to include tokenization, which involves converting real-world assets into digital tokens on the blockchain. Ripple has already begun initiatives like tokenized U.S. Treasury bill funds and its USD-pegged stablecoin, RLUSD. Kendrick points out that it’s blockchain, the XRP Ledger (XRPL), was originally designed as a payments chain but has the potential to evolve into a key platform for tokenization. In fact, Kendrick believes XRPL could mirror the success of Stellar, a leading player in the tokenization market.
4. XRP’s Role in the Digital Economy
XRP’s ability to facilitate fast, low-cost payments makes it an attractive option for businesses and financial institutions seeking efficient cross-border transactions. Kendrick believes that as the digital economy grows, the altcoin will become a crucial part of the broader payment landscape. With stablecoin transaction volumes expected to increase tenfold in the next four years, XRP’s utility in this space could become even more significant.
The Road Ahead: Challenges to Overcome
Despite the positive outlook, Kendrick notes a few challenges that could hinder the growth trajectory. For one, XRP’s developer ecosystem remains relatively small when compared to leading blockchain platforms like Ethereum and Solana. This smaller developer base could limit the rate of innovation and adoption.
Additionally, XRP’s low-fee model, while beneficial for cross-border payments, may limit its potential for value capture in comparison to other digital assets that charge higher transaction fees. However, Kendrick remains optimistic, suggesting that XRP’s increasing adoption could eventually overcome these challenges.
Price Projections: A Long-Term Outlook
Kendrick’s report provides a detailed price forecast for XRP over the next several years. By the end of 2023, he anticipates XRP reaching $5.50, gradually climbing to $8.00 by 2026, and peaking at $12.50 in 2028. This projection assumes that Bitcoin will also experience significant growth, reaching a price of $500,000 during the same period. According to Kendrick, the altcoin will be able to maintain relative performance despite higher inflation rates, with XRP’s price growing at 6% annually compared to Bitcoin’s 0.8%.
By 2029, Kendrick predicts XRP will stabilize around the $12.50 mark, providing long-term value to investors.
Conclusion: A Bright Future for XRP
Overall, Standard Chartered’s forecast paints a very optimistic picture for XRP, positioning the digital asset for significant growth in the coming years. With regulatory clarity, growing institutional adoption, and an expanding role in both cross-border payments and tokenization, XRP appears poised to make substantial gains. However, the challenges surrounding its smaller developer ecosystem and low-fee model must be addressed for XRP to fully capitalize on its potential. As the landscape for digital assets continues to evolve, XRP is certainly one to watch closely in the years ahead.
Source
Alexander Stefanov
Reporter at Coindoo
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over 8 years of experience covering the crypto, blockchain and fintech industries, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics.
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