Key Takeaways
- Asset manager Bitwise has boldly predicted that the future price of XRP will go up to $30 by 2030.
- Bitwise gave three possible scenarios that could impact the price of XRP in different directions.
- The impact of the emerging regulatory clarity as the Ripple vs. the SEC case nears its end could change the outcome of predictions given by many analysts.
Leading asset manager Bitwise has released a prediction showing XRP as an investment case and predicted how far the token price could go from 2025 to 2030.
According to the bold predictive report by the $12 billion asset manager Bitwise, XRP could experience bear, bull, and max cases between now and 2030. To determine the approximate valuation target for XRP, the firm employed a formula based on the Capital Asset Pricing Model (CAPM) that incorporated a discount factor for adjusting macroeconomic, regulatory, and competitive risks.
The Max Case Scenario
Using the max case scenario formula, the asset manager predicted that XRP could hit $4.48 by the end of 2025 before progressing to $6.53 by the end of 2026 and $9.60 by the end of 2027. The projection showed XRP entering the double-digit zone starting from $13.48 in 2029 before potentially reaching between $20.14 and $29.32 by 2030. It should be noted that this formula gravitates around the role XRP could play in payments and tokenization. With growing interest around RWA tokenization and a market cap project to exceed $10.9 trillion in 2030, the asset manager believes at least 1% to 2% of the market could positively impact XRP’s market cap.
Bitwise projects that XRP transaction fees related to RWA tokenized assets would increase on ledger earnings and potentially burn a fraction of XRP and reduce its supply by half, possibly pushing its price up. The report states that the projected annual return for the asset could reach at least $30 by 2030. Moreover, the firm believes that XRP’s market capitalization compared to Bitcoin could grow from 11% to at least 13.8%, assuming that Bitcoin’s price would have grown to $1 million per token.
Bull Case Scenario
Regarding the bull case scenario, Bitwise projects a steady network growth minus any regulatory challenges, expecting XRP to continue growing due to increasing institutional adoption, cross-border flows, new partnerships, and the launch and usage of XRP stablecoin on XPRL. The asset manager expects XRP’s annual return formula yield of +27%, with the token’s price expected to reach $12.70 by 2030. The formula suggests XRP would end 2025 at $3.90, just slightly above its all-time high of $3.84. Nonetheless, the firm believes XRP could attain $4.94 by 2026, $6.25 in 2027, and $7.91 by 2028. Under the bull model, the token could strike the double-digit range in 2029 at $10.02 before settling at $12.68 in 2030.
Bear Case Scenario
Bitwise also considered the worst-case scenario where a bear run could see XRP bottom to at least $1.82. With XRP retailing at $2.37 at the time of writing, the price could drop to $1.70 by next year if the bear rules and drops further to the $1 level in subsequent years. In particular, the report predicts a low of $0.13 for XRP by 2030. The report suggested a bear market could occur because the token relied on the baking sector and institutional adoption, where, in the worst-case scenario, it fails to capture a good share of cross-border payments at the RWA tokenization markets. This scenario could occur if institutional adoption fails to tokenize assets on XPRL, which becomes minimal, and XRP’s stablecoin RLUSD overshadows competitors.
Conclusion
Despite Bitwise’s bold prediction on the price of XRP, the token stands at a crossroads following the potential end of Ripple’s legal battles with the SEC. The approaching regulatory clarity has the potential to significantly impact the token’s future value and shift the market towards the bullish end.
Frequently Asked Questions (FAQs)
What are the risk factors of XRP?
While there are risks, including XRP’s price volatility and market uncertainties, the long-term outlook for XRP remains incredibly bullish.
What are XRP’s future expectations?
According to Egrag Crypto, a conservative future price projection for XRP highlights a target of $15, a standard measurement of $22, a personal target of $27, and an extended measurement of $44.
When will XRP reach $10?
Some analysts like Thomas Kralow suggest that XRP will reach between $8 and $10 by the end of 2025, but the more optimistic ones suggest $18 in the longer term, depending on widespread banking adoption.
