In the world of cryptocurrency, few coins have achieved performance like XRP (CRYPTO: XRP) recently. As of July 17, XRP is trading at $3.60, having increased by 899% over the past three years — far surpassing Bitcoin (BTC) with a 464% increase. This is the best growth in the top 10 largest cryptocurrency market cap.

However, as a familiar saying in the investment community goes: "Past performance is not indicative of future results." So where will XRP go in the next three years? Let's analyze the potential factors that could drive XRP's upward momentum as well as specific growth forecasts.

Growth Forecast for XRP and the Crypto Market

The total market capitalization of cryptocurrency has now reached $4 trillion, up 61% over the past year. Nevertheless, the crypto market is notoriously known for its boom and bust cycles. For example, after peaking at $3 trillion in November 2021, the market dropped sharply below $1 trillion and took nearly three years to recover.

Nevertheless, experts remain optimistic about the long-term prospects. Below are some growth forecasts for the cryptocurrency market:

  • IMARC Group: forecasts an annual compound growth rate (CAGR) of approximately 9.7% by 2033

  • Morningstar: forecasts a 10% CAGR by 2034

  • Roots Analysis: expects a CAGR of 11.5% by 2035

Applying this growth rate to the current XRP price, in the next three years XRP could reach a range of $4.75 to $4.99 — although this is a decent profit, it may not be attractive enough for investors seeking a breakthrough. However, some experts are much more optimistic. For example, Geoffrey Kendrick from Standard Chartered Bank believes XRP could reach $12.50 by the end of 2028.

XRP and Ambition to Replace SWIFT in International Payments

Ripple — the company developing XRP and the XRP Ledger (XRPL) — is working to create a more efficient international payment method. While the traditional SWIFT system is often slow and costly (ranging from $15 to $30 per transaction), the XRP Ledger can process transactions in 3 to 5 seconds at a cost of less than $0.01.

Additionally, XRP is used as an intermediary currency in cross-border transactions. Senders convert money to XRP, which is then converted to the recipient's currency. Recently, Ripple also introduced a stablecoin called Ripple USD, which helps mitigate the price volatility risks of XRP.

According to CEO Brad Garlinghouse, Ripple could capture 14% of SWIFT's total transaction volume in the next five years, equivalent to processing about $21 trillion a year. This figure is extremely ambitious, especially since XRP's total transaction value only surpassed $1 trillion at the end of last year.

Could XRP ETF Be the Next Big Push?

The U.S. Securities and Exchange Commission (SEC) approved the first spot cryptocurrency ETF funds in 2024. Bitcoin ETFs launched on January 10, followed by Ethereum on July 23.

XRP could be the next big name. The SEC is currently reviewing several applications for XRP ETF approval, and according to the prediction platform Polymarket, the probability of XRP being approved for an ETF by 2025 is as high as 86%.

ETFs could help increase liquidity, reliability, and institutional investor access to XRP. The case of Bitcoin is a clear example: BTC's price doubled within a year after the ETF launch and attracted $54 billion in inflows. Although Ethereum did not achieve a similar effect, ETFs are still seen as a positive signal for any coin.

XRP Price Forecast for the Next 3 Years

Considering the application potential and market position, XRP has a strong chance of significant price increase in the future. In a favorable scenario, with ETF approval and expanded applications in international payments, XRP could reach a price of $7 or more in the next three years.

However, if Ripple cannot expand its influence to financial institutions or faces serious legal obstacles, XRP's price could fall below $1. The cryptocurrency market is highly volatile, and large profits always come with significant risks.

Conclusion

If you are considering investing in XRP, it is important to assess the risks reasonably and only invest money you can afford to lose. XRP may be one of the most promising coins in the future, but it is not without variables that could affect its development path.