Many people wonder about the future of Ripple, or XRP, which is one of the most popular and oldest cryptocurrencies. Released in 2012, this payment protocol has revolutionized digital currency – or at least aims to do so. Ripple enables secure and instant transactions that have almost no fees and do not put you at risk of chargebacks. With the Ripple protocol, you can send cryptocurrencies, fiat currencies, and commodities. Ripple is not only popular in the world of cryptocurrency; various banks and established payment networks have already adopted Ripple, including Santander, UBS, and UniCredit.
A Quick Refresher on XRP
Before going into predictions for the XRP price and whether it will skyrocket, take some time to refresh your memory on the specifics of the cryptocurrency behind Ripple. XRP is the Ripple network’s native currency and can be divided into a drop, with a million drops being equal to one XRP. At inception, Ripple created 100 billion XRP, and no more will ever be produced. While users of the Ripple network do not need to complete their transactions using XRP, they must hold 20 XRP, a requirement that works to prevent spam and keep the network running smoothly.
The Ripple Supply
Since a currency’s value is closely tied to its supply and demand, we must mention the escrow of XRP that Ripple Labs set up. Near the end of 2017, the company placed 55 billion XRP into an escrow account, which was made up of 55 different escrow contracts. One contract will expire every month, allowing up to 1 billion XRP to enter the market. If at any point Ripple Labs does not use the month’s allocation, it goes back into escrow and gets a new expiration date, extending the eventual end of freeing XRP by a month. At the average reported monthly use rate of 300 million XRP, the escrow may take as long as 15 years if not more.
This information is very important to understand the predictions for XRP’s value since the escrow account and method of releasing the token prevent a mass dump that could lead to an oversupply and a crash in value.
The Current Value
At the time of writing, 1 XRP was equal to $0.5013. This represents a change of 3.1 percent in the last two days, +0.8 percent in the past three days, +6.0 percent in the last week, and -28.3 percent in the past month.
Adoption Will Likely Expand
One factor working in favor of Ripple and the potential for a skyrocket is that it has gained additional partnerships recently and will likely continue to do so. By design, Ripple facilitates international money transfers on the settlement layer. Many banks, as well as various international organizations, have begun using it. As those financial institutions experience success, others are likely to follow suit.
Whether the price of XRP will skyrocket depends on who you ask and what you classify as “skyrocket” instead of just an increase. Wallet Investor, for example, predicts that one XRP will reach $1.403 in a year and be up to $5.428 by five years from now. By comparison, it lists the current price at $0.50092. This translates to an increase of 2.8 percent in one year and an overall increase of 10.84 percent within five years. While this is not as dramatic as some price jumps we have seen from other cryptocurrencies, such as Bitcoin, it is certainly something worth watching.
Smartereum, on the other hand, points out that XRP was at one point at $4.50 and had recent lows of $0.60. Smartereum’s experts feel that based on input from others and their own experience, XRP is still a good investment opportunity since it will likely see new highs in the future. They also point out that numerous experts around the web have predicted highs for the end of the year of up to $8 or $10 for a single XRP.
Others, such as those at InvestingPR, point out that the predictions for Ripple depend on how widely adopted it becomes. Like other sources, they point out the numerous experts who feel it can reach $5 to $10 by the end of the year, although they caution that it will likely be closer to a maximum of $7 than $10. However, they point out that if Ripple manages to achieve their goal and become ‘the payment processor’ of choice for banks, the value of XRP could indeed skyrocket, perhaps even reaching $20.
A Word of Caution
One common theme among predictions for the price of XRP is to show caution. Since it recently had some highs and price rises, there will likely be price adjustments where it falls back down. Because of this, you should always do your own independent research before investing in Ripple.
Ripple Is Affordable to Invest In
Whether you feel that XRP’s price will skyrocket at some point in the future, there is no denying that it is a relatively affordable way to get into the cryptocurrency world. Both Bitcoin and Ethereum are currently priced low compared to their histories and yet sit at just $8,000 and under $500, respectively. You can get hundreds or thousands of XRP for the price of a single ETH or BTC. However, that does not mean that you would get the same return on investment. Cryptocurrency is notoriously unpredictable and volatile, which is why so many experts spend whole days evaluating and making predictions.
Most experts agree that the price of XRP will increase in the future, but their predictions differ as to how high it will go and how long it will take to get there. Investing in cryptocurrency is always uncertain, but the current low price of XRP makes it among the most affordable cryptos to invest in, particularly if you want one with a top-ranked market cap.