XRP, a cryptocurrency that once experienced meteoric growth, now faces a more tempered reality. After a surge of nearly 600% following the 2024 presidential election,its trajectory has stabilized. Currently, XRP is up a modest 6% for the year, trading around the $2 mark since March. The question now is: what’s next for XRP?

Regulatory Landscape and Potential Catalysts

A critically importent advancement is the apparent resolution of XRP’s regulatory challenges. The Securities and Exchange Commission (SEC) had, for over four years, attempted to classify XRP as a security. However,with a shift in management and a more favorable stance toward cryptocurrency,the SEC has seemingly retreated,concluding its legal battle against Ripple,the company behind XRP.

This resolution theoretically paves the way for substantial expansion for Ripple, especially within the U.S. market.This potential was a key driver behind XRP’s price surge after the 2024 election, as investors anticipated the benefits of a crypto-friendly administration.

• SEC Resolution: Ends regulatory uncertainty, potentially unlocking growth in the U.S.
• Spot ETF Potential: XRP was considered a frontrunner for a spot ETF,which could broaden investor access.
• Stablecoin Initiatives: Ripple’s foray into stablecoins,including Ripple USD (RLUSD),aims to expand the XRP ecosystem.

Earlier in the year, XRP was considered a leading candidate to receive SEC approval for a spot Exchange Traded Fund (ETF). Currently,only Bitcoin and Ethereum have spot ETFs,making this a potentially exclusive possibility for XRP. A spot ETF would broaden access to XRP for both retail and institutional investors, potentially driving up its price. However, due to ongoing tariff uncertainties, the SEC is unlikely to approve any new spot ETFs until late 2025 at the earliest.

Stablecoin Strategy: Ripple USD and Circle Acquisition

Even without an ETF, other catalysts exist, notably in the realm of stablecoins, a $200 billion industry. Stablecoins are cryptocurrencies pegged 1:1 to the U.S. dollar, backed by cash and cash equivalents, bridging conventional and decentralized finance.

Ripple launched its own stablecoin, Ripple USD (RLUSD), in late 2024, aiming to stimulate growth within the XRP payment network. Currently, XRP’s primary function is facilitating fast, low-cost cross-border payments. With a stablecoin,Ripple could offer new financial products and services centered around XRP.

However,Ripple USD’s growth has been slower than anticipated. Consequently, Ripple made a $5 billion acquisition bid for Circle, the company behind the USDC stablecoin. Although this bid was rejected, speculation suggests Ripple might increase its offer to $20 billion. This underscores Ripple’s ambition to establish a significant presence in the burgeoning stablecoin market.

Price Predictions and Market Realities

XRP is known for attracting ambitious price forecasts, with some predictions exceeding $10 or even $100. Some AI-powered models suggest XRP could surpass $500 by 2050.

However, it’s crucial to consider XRP’s historical performance. Its all-time high is $3.84, reached in 2018. while it approached this level in January, it has not consistently maintained such heights. A long-term chart of XRP reveals significant price spikes in 2018 and 2024, but otherwise, a relatively unremarkable performance.

Achieving a price above $10 by 2030 would likely require substantial institutional adoption. Ripple CEO Brad Garlinghouse has suggested that the XRP payment network could potentially challenge SWIFT as the leading cross-border payment network. As Garlinghouse recently pointed out in a Fox Business interview, SWIFT is based on 50-year-old technology. Ripple aims to offer faster, cheaper, and more reliable global payments using modern blockchain technology.

Previously skeptical due to regulatory uncertainties, a more bullish outlook is warranted if these regulatory issues are truly resolved. however, expectations should remain tempered. A doubling of XRP’s price by 2030 would be a positive outcome.