The value of cryptocurrencies can change drastically, and XRP is no exception. Over the past year, XRP price increased by about 360%, but more recent reports have noted it has dropped by around 10% in the past three months.
Several cryptocurrencies rise and fall rapidly in response to news or market sentiment, and their movements are more drastic compared to those of share prices. Because of this volatility, many investors wonder whether XRP is worth the risk or if it’s better to avoid the coin altogether.
Our review experts continuously analyze and monitor the movement of major cryptocurrencies over the past years. When it comes to XRP, they found that the cryptocurrency continues to be a reliable bridge currency for cross-border transactions amidst its extreme volatility.
Let’s take a closer look at the current XRP price, advantages, and issues in this TRU insight.
Ripple at a Glance
Formerly known as OpenCoin, Ripple Labs, or Ripple, is a private fintech company providing global payment solutions through its patented payment network, the Ripple Network (RippleNet).
The payment network is created in conjunction with Ripple’s open-source consensus ledger, known as the XRP Ledger (XRPL).
Most cryptocurrencies (i.e., Bitcoin) focus on peer-to-peer transactions. However, this is not the case for Ripple.
It functions as a bridge currency between payment providers, banks, and digital asset exchanges, ultimately enabling real-time settlement and lower transaction fees.
Introducing the XRP Ledger
Also known as XRPL, the XRP Ledger is Ripple’s open-source distributed ledger. Its native cryptocurrency is known as XRP.
XRP and the XRP Ledger are designed to enhance international financial transfers and facilitate the exchange of various currencies. It also allows investors to hold cryptocurrencies to store value and profit from price fluctuations.
XRP uses the XRP Ledger Consensus Protocol. XRP Ledger is a unique mechanism that utilizes a network of validators to verify transactions. This mechanism reflects the innovation of XRP, creating a process that bypasses the destructive Proof-of-Work (PoW).
Moreover, XRP differs from traditional cryptocurrencies like Bitcoin as it does not rely on mining. Rather, it is pre-mined, meaning that tokens are created at the time of their inception.
This unique token structure enables quick transactions since it does not require extensive computational knowledge to validate transactions.
XRP or Ripple?
While people sometimes use the terms “XRP,” “Ripple,” or “Ripple XRP” interchangeably, it’s important to understand that XRP is independent of the cryptocurrency services and technology company.
Ripple utilizes the XRP Ledger, a blockchain, and its native cryptocurrency, XRP, on its payment platform to facilitate transactions between businesses, organizations, and financial institutions.
Thanks to XRP’s reported efficiency, speed, and reliability, Ripple utilizes the technology in its solutions.
Learn about blockchain here: Blockchain for Beginners: Why It Matters in 2025
XRP Price
| 52-Week Range | $0.404518 – $3.38 |
| Market Capitalization | 133 billion |
| Max Supply | 100 billion |
| Circulating Supply | 59 billion |
As of the time of writing, our experts have determined that the current XRP price is $2.28.
While the XRP price continues to drift under $3, many investors are wondering whether to buy the cryptocurrency.
Falling from a 52-week high of $3.38 in mid-January 2025, the XRP price is now down 3% for the year. While this is a bargain price for crypto, our experts found some sentiments on the cryptocurrency have soured, while others seem to take the opportunity to pick up on the cheap.
Let’s go over to the next section to see the pros and cons of this new value.
XRP Pros
Below are the advantages that our experts find noted when it comes to XRP:
Real-World Use
Unlike some cryptocurrencies, XRP has a real-world use. Institutions can use XRP’s blockchain for cross-border currency transactions worldwide. It serves as a bridge currency, which is eventually converted into the recipient’s currency upon receipt.
This real-world application makes a good impression on the currency, making it integral to cross-country currency transactions.
Speed and Scalability
XRP transactions take seconds, unlike other currency conversions, which take days. They also charge low transaction fees.
To put it into perspective, the currency can handle up to 1,500 transactions per second. This tremendous speed makes XRP an attractive option for those seeking quick and efficient cross-border payments.
Strong Partnerships
The company behind XRP, Ripple, forged strong partnerships with major financial institutions worldwide.
These partnerships help make the currency legitimate and improve its adoption in the financial sector.
Regulatory Clarity
XRP received regulatory clarity from authorities worldwide. This clarity helps boost investor confidence in the long-term viability of XRP.
XRP Cons
Based on our experts’ research, here are some potential risks and disadvantages concerning XRP:
Centralization Issues
Our experts found that the common criticisms surrounding the currency often involve the centralization of XRP.
Unlike decentralized cryptocurrencies like Bitcoin, XRP is managed by Ripple, raising concerns about control and centralization.
Ripple has been actively marketing XRP as a decentralized cryptocurrency. However, crypto whistleblowers have found inconsistencies with its consensus mechanism. The utilization of its proprietary consensus mechanism allows the company to hand select validators, the ones who oversee XRP transactions.
This ultimately gives away the centralized operating system of XRP.
Note: Centralized cryptocurrencies raise concerns about sustainability and potential conflicts of interest. When a company has total control over a coin, it can manipulate the price or halt operations, potentially erasing the coin’s value.
Extreme Volatility
High volatility is common among cryptocurrencies. Since their movements are based on news reports and movements of other cryptocurrencies, buying crypto like XRP is mostly a speculative decision.
Stiff Competition
With several cryptocurrencies vying for market share, including altcoins such as Ethereum and Bitcoin, XRP faces strong competition that may impact its long-term growth potential.
Ripple XRP News Update
Our experts took a closer look at current XRP news to determine further whether the cryptocurrency is worth the investment.
As recent Ripple XRP news cites, Ripple’s persistence for a U.S. national bank license provided new momentum for XRP. Thanks to a surge in trading volume, the cryptocurrency rose above the $2.28 resistance zone, achieving a 2.36% gain.
The company’s initiative to apply for a national bank charter increased investor confidence, which can potentially accelerate institutional adoption.
Moreover, by obtaining a banking charter, Ripple can ensure compliance and operational transparency by being subjected to regulatory oversight. This can also establish a new standard for stablecoin reliability and security, addressing long-standing concerns about operational integrity and reserve backing.
Ripple vs. SEC
Despite the positive news regarding its U.S. national bank license, our experts have discovered that Ripple Labs has been embroiled in a legal battle with the U.S. Securities and Exchange Commission (SEC) since late 2020.
While the legal battle continues to impact XRP’s market sentiment, speculation that the regulatory body will withdraw its appeal sparks optimism among investors.
The outcome of this XRP news could set a precedent for how cryptocurrencies are regulated in the U.S., potentially leading to regulatory clarity.
Will XRP Increase in Value?
The XRP price prediction that all investors hope for when it comes to XRP is a possibility of any sort of upside.
As of today, XRP trades at a 52-week range of $0.404518 – $3.38. Its all-time high ($3.84) is yet to be broken, which is
If you choose to buy XRP now at its current price, the best-case scenario could be doubling your investment within the next five years. However, this can also happen with any other asset trading at the same price if it provides a compound annual growth rate of 15%.
The beginning of 2025, when the XRP price reached its peak, made it easier for the coin to have the potential to deliver 15% annual returns over the next five years. However, this is no longer the case.
If you are considering investing in the cryptocurrency, you need to be confident in the long-term outlook of the XRP price prediction. Given its high risks, it’s important to keep your expectations in check.
Is XRP a Good Investment?
XRP remains one of the top cryptocurrencies in terms of market capitalization. You can use it like any other digital currency, either as an investment or for transactions.
If you choose to invest in XRP, ensure that you don’t invest more money than you can afford to lose. As long as the cryptocurrency accounts for only a small percentage of your portfolio, it may be worth the high-risk, high-upside investment.
Generally, cryptocurrencies like XRP are associated with a significant risk of loss and volatile prices. For you to determine whether investing in cryptocurrencies suits your investing goals, it’s best to consult cryptocurrency experts at CommuniTrade.
FAQs
Where can I buy XRP?
If you’re wondering where to buy XRP, the currency is available on several exchanges, including Kraken, Coinbase, Bitstamp, and Huobi Global.
You can also make a purchase using your debit or credit card for cryptocurrency exchanges like Coinmama. You will need to create an XRP wallet and have it approved before you can buy the currency.
Who are the founders of the XRP Ledger?
David Schwartz, Arthur Britto, and Jed McCaleb launched the XRP Ledger in 2012, along with its native currency, XRP, to build a faster and more energy-efficient alternative to the Bitcoin blockchain network.
In September of the same year, they founded the Ripple company along with Chirs Larsen.
How Many XRP Coins are in Circulation?
The XRP Ledger developers allocated 80 billion XRP to Ripple, allowing the company to develop use cases, including RippleNet, around the digital asset.
Invest Smartly in Cryptocurrencies like XRP
XRP is a native token of RippleNet, functioning as a bridge currency that connects payment processors, banks, and crypto exchanges. Like any other cryptocurrency, its market position is a result of investor belief and the price at which they are willing to buy and sell it.
Deciding whether to trade in XRP often requires guidance from adept traders who are familiar with the risks involved in trading.
By becoming a member of an expert online community like CommuniTrade, you can make informed decisions about what you should add to your portfolio and whether to invest in cryptocurrencies like XRP.
