By the close of this year, Standard Chartered envisions XRP climbing to $5.50, surging to $8 by the end of 2026, touching $10.40 in late 2027, and ultimately reaching $12.50 as 2028 concludes. Currently, XRP has gained over 7%, trading around $1.93.
Ripple’s Post-Election Surge and Its Driving Forces
The cryptocurrency’s price multiplied six times following Donald Trump’s victory in November, the bank highlighted, fueled by hopes that the Securities and Exchange Commission (SEC) would abandon its appeal against Ripple. Additionally, anticipation around approval of XRP-based exchange-traded funds (ETFs) stirred investor enthusiasm.
Why These Gains May Not Be a Flash in the Pan
According to the bank, this bullish momentum is sustainable. Leadership shifts at the SEC contribute to this, alongside the fact that “XRP sits squarely in the midst of one of the fastest-developing realms in digital assets — the facilitation of cross-border and cross-currency payments.”
Understanding XRP’s Utility Through the Lens of Stablecoins
Geoffrey Kendrick, head of digital assets research at Standard Chartered Bank, explained that the XRP Ledger (XRPL) mirrors the core function of stablecoins like Tether: enabling blockchain-powered financial transactions traditionally handled by conventional financial institutions (TradFi).
The report forecasts that transactions involving stablecoins will balloon tenfold in the upcoming four years.
Stablecoins are digital currencies pegged to stable assets such as the U.S. dollar or gold. These tokens are pivotal in crypto markets and serve as a key vehicle for international money transfers.
Moreover, Ripple intends to expand XRPL’s horizons by venturing into tokenization, according to the bank. XRPL, a decentralized public blockchain backbone for XRP, is primarily used to facilitate payments.
Such tailwinds position XRP to potentially mirror the price appreciation patterns of its heavyweight counterpart, bitcoin (BTC), currently valued at approximately $111,495.39.
Challenges on the Horizon for XRPL
Still, XRPL contends with two notable setbacks: a relatively small developer community and limited value capture. However, these drawbacks appear outweighed by the favorable market trends and strategic advantages outlined in the report.
