If you’ve been following crypto news for some time now, you know that there’s one constant question that resurfaces in the market every year: is XRP a good investment? While you might’ve seen different people answer the question differently, there are high hopes for the Ripple token (XRP) in 2025.
So, in this article. You’ll find the answer to the eternal question, “Is XRP crypto a good investment,” once and for all. We’ll also address the crypto’s controversies and factors you’ll need to consider before getting XRP. So, if you’re thinking of saving some space in your portfolio for XRP, keep on reading!
Brief XRP History
XRP is the crypto coin of Ripple, which was introduced back in 2012. Unlike most other cryptocurrencies, XRP had a purpose, and that was to ease cross-border transactions and lower their costs. This made XRP a delicious opportunity for financial institutions to clear their transactions.
XRP had a pretty impressive track record up until 2017, when it hit its all-time high of $3.84. But the path only got bumpier for Ripple from there on. From 2018 to 2020, the XRP crypto coin’s price dropped significantly, reaching levels below $0.30.
The obstacles weren’t done with XRP, though. After the long wave of correction from 2018 to 2020, the Securities and Exchange Commission (SEC) dropped a lawsuit against Ripple, claiming it was conducting illegal practices; because to them, XRP should’ve been treated like a security, that is, with much stricter rules.
Still, the company fought back, claiming that XRP is a commodity and should be treated as such. Finally, in August 2024, the company saw glimpses of victory.
Although the court fined Ripple for the amount of $125 million, it did also distinguish that XRP is only a security investment during institutional sales, and trades from retail investors are to be considered as commodities.
Is XRP a Good Investment Today?
So, with all that turbulent history, you might be wondering, is XRP a good investment to even consider? We’ll cover the short-term aspect in this section.
Although XRP prices did rise a bit following the court order, they didn’t start to really move towards their days of glory until late 2024, when Trump officially began his pro-crypto campaign.
XRP prices managed to grow from around $0.60 in early November to $2.41 on Jan 5, the day Trump was elected. They have continued to grow ever since, seeing a staggering growth of 545% over time.
With that said, it’s safe to assume that investor’s interest has grown (duh, you’re here). But is that enough?
On a fundamental analysis basis, you should know that in addition to the renewed investor’s interest, we can also see institutional adoption of XRP on the rise. This could contribute to price stability, making XRP a safer investment. Additionally, the company’s recent partnerships and its expansion of XRP’s use cases show great potential, turning XRP coin into a promising short-term investment.
The path to technical analysis is a bit more complicated, though. It’s not that price action patterns or crypto chart patterns signal ominous things. Rather, the market is too volatile to offer long-term technical analysis. So, you should best follow a dedicated XRP news and analysis feed instead to keep you updated on the nitty-gritty details of the market.
Is XRP a Good Long Term Investment?
Although Ripple secured a partial victory in its case against the SEC, the game is still not over. To answer the question, “Is XRP a good investment?” The most important factor to consider will be the final result of the court.
If XRP gets classified as a commodity, fewer rules and regulations apply to it, which makes it more potent as an investment. The good news is that other global regulators like the UK, UAE and Japan have already ruled out XRP as a commodity, so this could be a great sign for Ripple enthusiasts.
Still, if the crypto is deemed a security in the court, chances are that trading and making money from it will be more restricted. That said, over 300 major firms use RippleNet to settle their transactions at this very moment, painting an optimistic future for XRP as well.
At the same time, Trump has nominated Paul Atkins, the chairman of Crypto Alliance, a crypto advocacy organization, to run the SEC. Although the Senate is yet to confirm or deny that suggestion, it does sound like the new US president is serious about making the country the crypto capital of the planet, which ultimately affects XRP as well.
Why Is XRP a Good Investment?
So, is XRP a good investment? Here’s a list of its top 3 advantages to help you decide.
1- High Adoption Expectancy
As mentioned earlier, Ripple has managed to secure promising partnerships with over 300 financial institutions. Not only have larger players, such as Santander, SBI Holdings, and the Bank of America, partnered with Ripple (at least at some point), more and more fintech companies are also starting to use RippleNet to settle transactions.
RippleNet’s Liquidity Hub provides access to multiple cryptocurrencies, including XRP, for banks to settle their transactions and conduct global remittances with. Even if these partners don’t directly use XRP, this increase of adoption rate could lead to enhanced XRP scalability as well.
Ripple itself is working with banks and financial institutions to make both its platform and token more scalable. With the rise of CBCDs (central bank digital currencies), Ripple is working with multiple central banks to facilitate interoperability between digital assets.
Additionally, countries are also developing clearer crypto regulations, which can ease XRP trading and make its use cases more mainstream. The MiCA regulation in Europe and similar frameworks in Asia, for example, could create favorable conditions for large-scale institutional adoption. Ripple’s efforts to comply with regulatory bodies worldwide only increase the likelihood of global integration.
2- A Purposeful Crypto
The next factor you need to comprehend to decide on XRP and if it is a good investment is its purposefulness. Ripple created XRP and RippleNet to mainstream large international transactions and provide a more modern solution to the traditional SWIFT (the Society for Worldwide Interbank Financial Telecommunications) settlements.
For example, while traditional cross-border payments via SWIFT take days to process, XRP provides near-instant transactions that only take 3-5 seconds. Additionally the transaction costs are also significantly reduced with Ripple. Not only do they cost only a fraction of a cent with XRP, but the network also eliminates the need for pre-funded nostro/vostro accounts in financial institutions. This alone can free up liquidity for banks.
Ripple can also mainstream transactions in that it facilitates prompt settlements. While SWIFT remittances take up to a few days to process, RippleNet can process up to 1,500 transactions per second (TPS). Not only is this number significantly higher than the usual SWIFT processing rate, but it’s also a lot compared to Bitcoin’s 7 TPS and Ethereum’s 30 TPS.
3- Friendship with Trump
The third leg of the XRP investment stool is Trump’s stance on cryptocurrency in his administration. The crypto industry is expected to have much clearer regulations in Trump’s new era, with him publicly endorsing the cryptocurrency market and launching his own meme coin. These could all benefit XRP as well.
Ripple has actively engaged with republican lawmakers and lobbyists (like Cynthia Lummis and Tom Emmer) who are actively seeking a more mainstreamed and facilitated framework for the cryptocurrency market to operate in. If Trump decides to work in the same direction as their efforts, promising results can be expected.
Additionally some speculate that if Atkin is confirmed by the Senate to be the new CEO of the SEC, there’s a good chance that the SEC will drop its lawsuit against Ripple, giving XRP an official legal victory.
Why You Should Think Before Investing in XRP
So, is XRP still a good investment? While the reasons above testify in Ripple’s favor, there are also risk factors you need to consider before dedicating your capital to the crypto token.
1- Regulatory Challenges
Although Trump’s administration and the recent XRP “win” in the court suggest that the crypto is finally headed for good days, things are not yet set in stone. If the United State’s new regulations streamline crypto trading, Ripple can also be expected to grow. However, stricter regulations might mean more complications for the company and its token.
2- Stablecoin Competition
With the rise of stablecoins (crypto tokens whose worth is pegged to a fiat currency), banks seem to be preferring them to volatile cryptocurrencies like XRP. Still, Ripple is working with central banks to make XRP a bridge token when converting these stablecoins to regular fiat currencies.
3- Intrinsic Value Problems
There could be a few complications with XRP’s intrinsic value (what it’s actually worth) even if Ripple wins the lawsuit or if the SEC drops it. First, the company should work hard to maintain its relevance, as banks establishing their own blockchain solutions can diminish it quickly.
Moreover, XRP’s centralized nature compared to fully decentralized cryptos like BTC and ETH could cause some skepticism across the community. Lastly, unlike Bitcoin (store of value) or Ethereum (smart contracts), XRP’s value depends on adoption, which is another thing to consider.
XRP vs BTC: The Battle of the Century
So, after finding the answer to the question, “is xrp coin a good investment,” another one pops into mind: Bitcoin vs. Ripple, which one is better?
Starting with general trivia, XRP is used for fast transactions, whereas BTC is viewed more like digital gold. Ripple has a much faster transaction speed, settling trades every 3-5 seconds, while Bitcoin needs 10-60 minutes to do so.
XRP can handle 1,500 TPS, all the while BTC produces only 7 TPS. Still, XRP is scrutinized among some key regulators, while BTC is more decentralized. All these factors turn Bitcoin to the more dominant crypto, leaving XRP with a lot of space to grow.
But which token is, in fact, better?
For long-term investments, Bitcoin is a better option to choose, mainly because of the support it gets from key players in the industry. However, if you’re thinking of a tighter time period to make money, XRP is your token.
Final Verdict
Ripple’s token (XRP) has had a lot of ups and downs in its time. It’s risen to $3.84, been corrected significantly, gotten involved in a lawsuit with SEC, made a small victory on said lawsuit, and is now on its way to the top again.
To answer the question, “Is XRP Ripple a good investment,” we can say that it is, if you have a larger appetite for risk than the normal trader. While investing in Ripple can bring considerable rewards, at least in the short-run, the long-term performance of the cryptocurrency is dependent on one too many factors.
Still, if you want to make some quick bucks from XRP, ITBFX is your ideal place to start. With tight spreads and low commissions, you can start your crypto and forex journey without the usual extra hassle. All you need to do is go to our website and sign up for an account now.
Otherwise, find the best crypto to buy right now and get your trading to the next level!
Whether or not to invest in XRP depends on your risk tolerance and investment strategy. While the crypto token has a real-world use case, market volatility is high.
Our analysts at ITBFX predict moderate to high growth for XRP, but it's speculative. It's best to watch for institutional adoption and regulatory changes and make informed decisions.
Availability depends on exchange listings post-SEC lawsuit. Some US platforms and international exchanges offer it.
It depends on your goals. BTC is digital gold, while XRP is optimized for fast banking transactions.
Hardware wallets (cold storage) offer the highest security against hacks and exchange failures.
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