In a new in-depth report, Standard Chartered has made a bold prediction regarding Ripple’s XRP. The banking giant suggests that XRP could surge by over 500% within the next three years, reaching $12.50. This growth is expected to be driven by increased adoption in crypto payments and tokenization use cases. Moreover, the report indicates that XRP’s market capitalization might eventually surpass that of Ethereum, positioning it as the world’s second-largest cryptocurrency.
Geoff Kendrick, Head of Digital Assets Research at Standard Chartered, highlights three core factors supporting this optimistic outlook: regulatory developments, institutional adoption, and broader application expansion. He states, “We estimate that by the end of 2028, XRP’s market cap will exceed that of Ethereum, making it the second-largest cryptocurrency behind Bitcoin, excluding stablecoins.”
Kendrick points to a shifting regulatory environment, especially with the potential return of former U.S. President Donald Trump, as a positive catalyst. He also notes that the U.S. Securities and Exchange Commission (SEC) has dropped its appeal in the lawsuit against Ripple, effectively concluding a four-year legal battle.
Key Drivers Behind the XRP Rally
Supportive Regulatory Developments
The resolution of Ripple’s legal challenges with the SEC is seen as a major win for XRP. With regulatory uncertainty diminishing, institutional confidence is growing. This shift is expected to encourage more financial institutions and corporations to explore and adopt XRP for cross-border transactions and other use cases.
Institutional Adoption and XRP ETF
Kendrick anticipates that an XRP spot ETF could be approved as early as Q3 of this year. He projects that such an ETF could attract between $4 billion and $8 billion within its first year of trading. This influx of institutional capital would significantly boost liquidity and market presence for XRP.
Expansion in Use Cases
XRP’s primary utility lies in cross-border payments and foreign exchange solutions. These applications align closely with the rapidly growing stablecoin sector, which has seen transaction volumes increase at an annual rate of 50%. Over the next four years, stablecoin transaction volume is expected to grow tenfold.
Ripple is also making strides in asset tokenization. Initiatives such as tokenized U.S. treasury funds and the launch of a USD-backed stablecoin (RLUSD) are set to expand the functionality of the XRP Ledger (XRPL). According to Kendrick, these efforts could transform XRPL from a payment-focused blockchain into a comprehensive platform for tokenized assets.
Price Targets and Market Outlook
Standard Chartered’s report includes specific price targets for XRP over the coming years:
- By the end of this year: $5.50
- By 2026: $8.00
- By 2028: $12.50
The bank expects the price to stabilize around $12.50 by 2029. While XRP still faces challenges related to its developer ecosystem and value capture mechanisms (due to low transaction fees), Kendrick believes that continued regulatory clarity and growing institutional use could mitigate these issues over time.
Kendrick has previously expressed bullish views on other cryptocurrencies. For example, he forecasted that Bitcoin could reach $500,000 by 2028 and that Avalanche (AVAX) might surge to $250 by 2029. However, his outlook for Ethereum has been less optimistic. Last month, he revised his year-end price target for Ethereum downward from $10,000 to $4,000.
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Frequently Asked Questions
What is driving Standard Chartered’s optimistic forecast for XRP?
The forecast is based on three main factors: positive regulatory developments, increasing institutional adoption, and the expansion of XRP’s use cases in payments and tokenization.
Could XRP really surpass Ethereum in market capitalization?
According to Standard Chartered, yes. The report suggests that by the end of 2028, XRP’s market cap could exceed that of Ethereum, making it the second-largest cryptocurrency after Bitcoin.
What are the expected price targets for XRP?
Standard Chartered predicts XRP will reach $5.50 by the end of this year, $8.00 by 2026, and $12.50 by 2028, with prices stabilizing around that level through 2029.
Is an XRP ETF likely to be approved?
Geoff Kendrick believes there is a strong possibility that an XRP spot ETF could be approved as early as Q3 of this year, which would likely attract significant institutional investment.
How does Ripple’s stablecoin initiative fit into this outlook?
The launch of Ripple’s USD-backed stablecoin (RLUSD) and its focus on tokenizing real-world assets are expected to broaden the utility of the XRP Ledger, supporting its transition into a multi-functional platform.
What risks could hinder XRP’s growth?
Challenges include the need for a stronger developer ecosystem and improved value capture mechanisms. However, these may be offset by favorable regulatory changes and increased institutional adoption.
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