XRP Undervalued? Two Signals to Consider

What to Know:

• XRP has shown resilience, holding support around $2.00 in late November and early December, sparking debate about its potential market reach relative to Bitcoin.
• XRP’s utility in cross-border payments and the development of the XRP Ledger for smart contracts could drive future valuation.
• Increased adoption of XRP for international transactions and expansion of its smart contract capabilities could positively influence XRP’s liquidity and market position.

XRP, currently the third-largest non-stablecoin cryptocurrency by market capitalization, has demonstrated stability around the $2.00 mark recently. While comparisons to Bitcoin’s historical growth may seem far-fetched, a closer look at XRP’s utility in international payments and its evolving smart contract capabilities reveals potential for substantial growth. The question remains whether XRP can capture a significant share of the cross-border payment market and establish itself as a viable platform for decentralized applications.

XRP’s Market Cap Potential

To reach a market capitalization equivalent to Bitcoin’s peak in October, XRP would need to experience a roughly 1,900% increase from its mid-December valuation. This would bring XRP’s market cap in line with Bitcoin’s $2.5 trillion valuation at its height during Q4. Whether XRP possesses the inherent potential to achieve such growth depends on its ability to expand its business model and increase its overall market valuation.

XRP vs. SWIFT in Cross-Border Payments

Recent reports suggest that XRP could potentially capture 14% of SWIFT’s $150 trillion market by 2030. Ripple’s On-Demand Liquidity service, which utilizes XRP tokens, processed $1.3 trillion in Q2 2025, potentially reaching $5.2 trillion annually. This faster settlement time compared to SWIFT’s multi-day process could drive increased demand for XRP tokens. As the global economy expands, the volume of cross-border payments is expected to rise, potentially benefiting Ripple’s expansion efforts.

XRPL and Smart Contract Capabilities

The XRP Ledger is evolving to support smart contracts, expanding XRP’s use case beyond payments. This development could position XRP as a platform for secure and reliable transactions, opening up new opportunities in cloud computing and decentralized applications. The surge in XRPL activity in December indicates growing interest in its smart contract capabilities.

XRP as a Potential Ethereum Competitor

As of mid-December, XRP’s market cap stood at $122 billion, while Ethereum’s was $375 billion. If XRP were to emerge as a significant competitor to Ethereum in the smart contract space, it could potentially add a substantial amount to its market capitalization. This growth would depend on the adoption of XRPL as a platform for decentralized applications and its ability to attract developers and users.

Conclusion

While becoming an XRP millionaire overnight may not be realistic, the potential for growth exists. XRP’s utility in cross-border payments, coupled with the development of its smart contract capabilities, presents opportunities for increased adoption and market valuation. Whether XRP can capitalize on these opportunities and compete with established platforms like Ethereum remains to be seen.

Related: XRP ETF Flows Show Buy Signal

Source: Original article