XRP investment through a Dollar Cost Averaging (DCA) strategy has captured interest among crypto enthusiasts seeking long-term returns. The idea is simple: invest consistently over time, regardless of market volatility, and let compounding gains accumulate. But what could that strategy really yield if XRP grew by 15% annually for two decades?

What Is Dollar Cost Averaging (DCA) in Crypto?

Dollar Cost Averaging (DCA) involves investing a fixed amount on a regular schedule—typically monthly—into an asset, irrespective of its price at the moment. In the case of XRP, this method has been utilized by various market participants to smooth out volatility and mitigate the risk of bad timing.

One prominent supporter of this approach is Edoardo Farina, founder of Alpha Lions Academy, who shared how consistent investing helped him build wealth over a five-year period. Similarly, finance commentator Moon Lambo reported a 14x return on his XRP holdings by applying this method early.

MicroStrategy vs. XRP: A Point of Comparison

The DCA strategy also brings to mind companies like MicroStrategy—now rebranded as Strategy—which has used a similar strategy with Bitcoin since 2020. Their $33.139 billion investment in Bitcoin over five years has grown to $72.625 billion, recording a profit of about $39.5 billion. Yet, a report from The Crypto Basic suggested that returns could have been even greater if XRP had been the primary asset.

Why XRP Remains an Appealing Long-Term Pick

Despite years of price stagnation around $0.50, XRP has experienced renewed momentum, recently trading under $3. For long-term investors, this relatively low price presents an attractive entry for applying a DCA strategy over time.

For example, finance educator Coach JV recently advocated allocating investment toward XRP or Bitcoin consistently over a decade instead of spending impulsively. His reasoning aligns with the belief that crypto assets like XRP still hold significant potential over the long run.

How a $500 Monthly XRP Investment Could Grow by 2045

Let’s break down the potential growth of a $500 monthly investment into XRP, assuming a 15% annual price increase for 20 years. With 240 months between now and August 2045, the total investment would add up to $120,000.

As XRP’s price rises, each $500 would purchase fewer tokens. At the current price of $2.92, the initial investment next month would buy approximately 159.3 XRP. One year later in September 2026, with XRP priced at $3.61, the investor would have accumulated about 2,013 tokens for $6,500 invested altogether.

By December 2040, with XRP reaching $29.70, they’d have spent $92,500 for roughly 17,978 XRP. By the end of the plan in August 2045, XRP’s estimated price would hit $50.74. With a total investment of $120,000, approximately 19,360 tokens would be accumulated, giving the portfolio a value of around $982,163—a gain exceeding $862,000.

However, these figures are purely hypothetical. There’s no certainty that XRP or any cryptocurrency will deliver a consistent 15% annual return over two decades. The volatile nature of crypto markets makes such projections speculative and should not be interpreted as financial advice.

Illustration of long-term crypto investing with regular XRP purchases using the DCA strategy.

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

Investors should thoroughly research, assess risk tolerance, and consider speaking with financial professionals before committing funds. Still, the model showcases the powerful potential of strategic long-term investing in digital assets like XRP.