What is XRP?

XRP is a cryptocurrency created by Ripple Labs. XRP was designed for the specific purpose of making cross-border payments faster and cheaper than ever. 

Ripple's network enables banks and financial institutions to settle transactions in seconds. 

XRP saw its first boom in the crypto bull market of 2017. While the cryptocurrency saw stagnation for years after a lawsuit from the SEC, the price of XRP started rising in 2024 — briefly becoming the third most valuable cryptocurrency in the world. 

Why is XRP rising? 

XRP saw a major price surge after the 2024 U.S. presidential election, fueled by optimism about President Trump’s crypto-friendly stances and the potential approval of an XRP ETF (more on this below). 

Is it possible for XRP to hit $1,000? 

It’s mathematically unlikely that XRP will reach a price of $1,000. 

XRP’s current supply is 57.1 billion tokens. If XRP were to reach $1,000 per token, its market cap would be $57 trillion—more than double the U.S. GDP and over half the total value of the global stock market ($109 trillion as of Q4 2024).

At the time of writing, here are the market capitalizations of Bitcoin and Ethereum (the world’s two most valuable cryptocurrencies): 

• Bitcoin market cap: ~$2 trillion+
• Ethereum’s market cap: ~$340 million+ 

Is XRP a good investment? 

Let’s walk through some of the pros and cons of XRP. 

Pros of XRP 

• Transaction Speed: XRP was designed specifically for cross-border payments. The cryptocurrency settles transactions in 3-5 seconds.
• Low Fees: Transactions with XRP cost a fraction of a cent.
• Institutional Adoption: Ripple has partnered with major financial institutions like Santander and Bank of America. 

Cons of XRP 

• Regulatory Uncertainty: In the past, regulators at the SEC have butted heads with Ripple Labs. However, it’s unlikely that President Trump’s SEC will continue to pursue legal action against the company. 
• Centralization Concerns: Critics have said that Ripple Labs owns a large amount of XRP — raising concerns about centralization. 

It’s also important to note that XRP is highly volatile and much of its current value is speculative. In February 2025, XRP surged to $3.07 before retracing 42% to $1.77, then rebounding 35%—illustrating its risk and its potential. 

You can use this XRP Profit Calculator to calculate what your future returns on the cryptocurrency would be if it hit various price points. 

Can XRP be the next Bitcoin? 

Because XRP has a lower market capitalization than Bitcoin, it may have more growth potential in the short-term. It’s likely that a crypto-friendly regulatory environment and increased institutional support could cause a bull run for XRP. 

However, it’s important to note that it's unlikely that any asset can mimic the success of BTC. Because Bitcoin was the world’s first and most well-known cryptocurrency, it has an advantage over other digital currencies. 

In addition, it’s important to note that XRP and Bitcoin were designed for different purposes. 

• Bitcoin: A store of value and medium of exchange, often called “digital gold.”
• XRP: Designed for high-speed, low-cost international transactions.

Does XRP have institutional support? 

In recent years, XRP has seen support from institutions: 

• Santander Bank uses XRP in its One Pay FX platform for fast international money transfers.
• Bank of America conducts 100% of its internal transactions with Ripple. 
• As of 2025, multiple firms have applied for XRP ETFs — signaling growing institutional interest.

XRP vs. other cryptocurrencies

Let’s see how XRP compares to BTC and ETH. 

Bitcoin: Bitcoin is a more established cryptocurrency and is more decentralized than XRP. However, Bitcoin is slower and more costly — and was primarily designed to serve as a store of wealth, not as a tool for cross-border payments. 

Ethereum: Ethereum was built to enable smart contracts and decentralized applications. While Ethereum has a broader ecosystem than XRP, it’s not as well-suited for cross-border transactions. While Ethereum is more decentralized, it also has higher fees than XRP. 

What’s the future of XRP after the SEC case? 

In 2020, the SEC sued Ripple Labs, claiming that XRP was an ‘unregistered security’. It’s likely that this lawsuit hindered XRP’s adoption and caused its price to stagnate for years. 

In 2023, Ripple Labs achieved a victory over the SEC, when a court ruled that XRP was not a security when sold to retail investors. 

As of 2025, it’s likely that Ripple Labs has overcome legal issues. It’s unlikely that the SEC under Paul Atkins — a crypto-friendly regulator — will continue to pursue legal action against Ripple Labs. 

Does the Trump Administration support XRP?

The price of XRP increased after Ripple CEO Brad Garlinghouse was seen dining with President Trump in January 2025. 

While neither President Trump nor the Trump Administration has expressed public support for XRP, investor enthusiasm has been spurred by the following developments: 

• Trump’s AI & Crypto Czar, David Sacks, praised Ripple Labs’s legal victory over XRP in a 2023 podcast appearance. Some analysts see Sacks’s role in the White House as a positive sign for friendly crypto regulations. 
• President Trump appointed Paul Atkins as the Chair of the SEC. Atkins is considered a crypto-friendly pick, and analysts believe that it’s unlikely that he’ll continue legal battles with Ripple and other crypto companies. 
• Rumors of a potential XRP ETF have fueled investor excitement, though no official approvals have been announced yet. Since it’s likely that the SEC will take a friendlier stance towards the crypto industry, an XRP ETF may be coming in the near future. 

In conclusion 

While it’s unlikely that XRP’s price will hit $1,000, institutional support may lead to price growth in the years to come. Before you invest, consider your own unique financial situation.