XRP Forecast: Ripple Could Double by 2028

XRP is capturing renewed investor attention as Ripple emerges from a prolonged legal battle, putting the cryptocurrency back in the spotlight. The focus keyword here is XRP, a digital token that continues to exhibit growth potential fueled by favorable developments. Over the next three years, XRP could double in value as legal clarity and new financial products open doors for broader adoption.

Currently trading around $3.24 and commanding a market capitalization of approximately $192 billion, XRP has reestablished itself as the third-largest cryptocurrency by value. Market analysts, such as Geoffrey Kendrick from Standard Chartered, anticipate XRP climbing to $12.50 by 2028 — a 285% rise from its current valuation. Key to this bullish outlook is a combination of regulatory resolution and the expected launch of spot XRP ETFs.

Predictions vary in their bullishness. While Kendrick’s projections are optimistic, more conservative voices estimate XRP could rise to around $6.50 within three years based on a steady outperformance of broader crypto benchmarks. This projection still represents significant upside for investors willing to weather market fluctuations.

Ripple’s Legal Win Provides Clarity for XRP

Ripple, the financial technology firm behind XRP, recently emerged victorious from a high-stakes dispute with the U.S. Securities and Exchange Commission (SEC). Originally filed in 2020, the lawsuit accused Ripple of selling XRP as an unregistered security. While the SEC won a partial ruling regarding institutional sales, Ripple was only fined $125 million. The possibility of a much larger penalty — up to $2 billion — was eliminated when the SEC dropped its appeal earlier this month.

This legal resolution clears a significant regulatory hurdle that limited XRP’s adoption by financial institutions. With the matter settled, Ripple is positioned to expand its services, particularly its use of the XRP Ledger in cross-border payments. Notably, Ripple recently introduced a stablecoin to its ecosystem, potentially enhancing utility and attracting more corporate partners.

Spot XRP ETFs Could Fuel Investment Surge

The likely approval of spot XRP exchange-traded funds (ETFs) may further boost demand. Major financial firms, including Franklin Templeton, have submitted at least eight ETF applications, which the SEC is expected to evaluate and decide on by October. Bloomberg analyst Eric Balchunas estimates a 95% chance of approval.

If approved, these ETFs would enable retail and institutional investors to gain exposure to XRP without dealing directly with cryptocurrency exchanges. This ease of access could substantially increase inflows. Historical precedent offers compelling evidence — Bitcoin surged 160% after spot Bitcoin ETFs received the green light in early 2024, led by the record-setting debut of the iShares Bitcoin Trust.

A similar, though potentially smaller-scale, surge could occur with XRP. By lowering friction and increasing visibility, spot ETFs could serve as a catalyst for broader adoption and rising valuation over the next few years.

Volatility Remains a Risk Factor

Despite these promising developments, investors should remain cautious. Cryptocurrencies, including XRP, remain susceptible to extreme volatility. XRP has endured price drops exceeding 30% on several occasions in the past five years. This high-risk profile means investors should limit their exposure and diversify accordingly.

Experts suggest limiting cryptocurrency holdings to a small percentage of a portfolio. For XRP, allocating around 1% is a prudent strategy until further clarity emerges, particularly after ETF decisions from regulators. For risk-tolerant investors prepared to hold through periods of instability, XRP offers a compelling case for long-term upside.

Related: XRP Price: $12M Max Pain for Bears

In summary, Ripple’s legal clarity and the potential for spot XRP ETFs paint a bullish picture for XRP’s future. With institutional doors reopening and access for retail investors likely to improve, XRP may be on track to double by 2028. Whether you’re a crypto enthusiast or a cautious investor, XRP is worth placing on your watchlist in the evolving digital asset landscape.