XRP has had a rollercoaster year, with prices surging from nearly 30% decline to a new all-time high of over $111,000 in May. However, its recent momentum is unlikely to be sustained due to several factors.
The cryptocurrency market is full of scams and speculative instruments, but XRP falls into the latter category. As a legitimate digital asset with real-world use cases, it’s designed to facilitate fast and cheap transactions between financial institutions. Major banks like Bank of America and JPMorgan Chase have partnerships with Ripple Labs, indicating that the technology works.
One key distinction investors often overlook is that partnering banks do not necessarily hold or use XRP itself. Ripple Labs offers two products: ODL and RippleNet. While ODL uses XRP’s blockchain, RippleNet does not require holding the token. This changes the story of widespread adoption by the banking industry, which was the main argument for XRP’s price appreciation.
Moreover, XRP faces increasing competition from stablecoins. These coins offer stability in pricing, avoiding significant risks associated with XRP’s volatility. As a result, many banks and governments are looking to create their own stablecoins, further reducing XRP’s appeal.
While it’s possible that XRP could reach $3 again, its long-term price appreciation is unlikely due to the hype surrounding it. Over time, investors will likely realize that widespread adoption by the banking industry is not playing out as expected, leading to a significant price fall. As an investor seeking long-term gains, it’s best to avoid XRP altogether.
Source: https://www.fool.com/investing/2025/05/25/can-cryptocurrency-xrp-ripple-reach-300-again