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Can the cryptocurrency XRP (Ripple) make millions?
- May 10, 2025 at 6:15 AM
Key Points
The price of XRP has risen by over 300% in the past six months.
The token stands out in a world filled with memecoins and tokens that have no real-world use.
The market capitalization of XRP is $135 billion, representing a significant amount of future growth.
Before you buy more XRP, read this ›
The past few months have seen a boom in cryptocurrency investor performance, which is an important indicator. Bitcoin surpassed the $100,000 mark, reaching over $109,000 just 16 years after its launch. While its price has fallen to around $102,000 amid uncertainty, investors remain optimistic about Bitcoin's continued growth.
This optimism has extended to what are called alternative cryptocurrencies, seeking to replicate the stunning successes achieved by the original cryptocurrency. XRP (CRYPTO: XRP), in particular, has garnered a large fan base. This digital currency, aimed at revolutionizing the banking sector, has seen its price rise by over 300% in just the last six months. Will XRP replicate Bitcoin's success? Can you become a millionaire?
XRP Fundamentals
Let's take a step back and explore what XRP is and its benefits. This cryptocurrency is designed to serve as a bridge between banks and other financial institutions. It facilitates international money transfers efficiently, allowing banks to settle transactions almost instantly. Traditional methods can take days or even weeks and are often complex and costly, potentially involving third parties that complicate the process further. The key advantages of XRP compared to legacy systems are speed and low cost.
The real value and usage record that XRP offers in the sector it targets makes it stand out in a market flooded with meme coins. However, we need to try to quantify this value. Is it enough to justify the massive market value that XRP has achieved, which is $135 billion?
Understanding the value of XRP
It's hard to make a direct comparison, but I think Visa is a good starting point. The company operates a vast global payment network that is not entirely different from XRP. While there are significant differences, I still think it’s useful. How do the two networks compare? Visa conducts over 640 million transactions daily, while the XRP blockchain processes only a million transactions daily.
163%
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Despite this discrepancy, Visa's market capitalization is not more than five times that of XRP. Does this seem proportional? It seems to me that Visa's value is either undervalued or XRP's value is overvalued. I bet on the latter.
A digital representation of the blockchain with interconnected glowing blocks.
Source: Getty Images.
This may not be a fair comparison; let's try another way of thinking about it. The claim is often repeated that if XRP were widely adopted, it would capture a significant share of the hundreds of billions of dollars that banks pay in transaction fees annually. The downside, in my opinion, is that the only reason XRP is attractive to banks in the first place is its minimal cost—much lower than traditional methods. Thus, even if it manages to handle the transactions of the entire market, the fees it would collect would be in the hundreds of millions or a few billion dollars. This does not seem to justify the current market value.
