XRP has recently entered a phase of consolidation, with its price stabilizing just above $2 after the recent turmoil in the global markets. Despite this, many in the crypto community remain optimistic about XRP’s long-term potential, citing its growing utility as a fast and cost-effective payment solution. These bullish sentiments fuel ambitious price forecasts, some projecting XRP’s price well into the two- or even three-digit range over the next 15 years.

Currently trading around $2.16, XRP holds a market capitalization of approximately $127.5 billion. While this places XRP among the top cryptocurrencies, some analysts argue it is significantly undervalued relative to its potential. Supporters highlight XRP’s expanding role in cross-border payments and remittances, positioning it as a disruptive force against legacy financial infrastructure.

Ambitious Price Targets and Market Cap Implications

Several prominent figures in the crypto space have issued bold price predictions for XRP. For example, analyst Cryptominder suggested in April that XRP could reach $50 within five years, while market commentator BarriC believes a $100 price tag is possible sooner than expected. However, such projections raise questions about feasibility, especially when considering the massive market capitalization needed to justify these prices.

To offer a more grounded perspective, The Crypto Basic recently analyzed XRP’s price potential if its market cap were to match a significant portion of gold’s valuation. Gold, with its $23.185 trillion market cap, remains the largest asset globally by value. Should XRP capture 40% of this figure, its market cap would swell to $9.274 trillion—far exceeding Bitcoin’s current valuation of around $2 trillion and dwarfing today’s total crypto market cap of approximately $3.28 trillion.

The Path to $9.27 Trillion Market Cap by 2040

For XRP to reach this staggering market capitalization, it would need to grow by roughly 7,173% from its current position. Translated into annual terms, this requires a compound annual growth rate (CAGR) of about 35% over the next 15 years. While ambitious, such sustained growth is not unheard of in the crypto world, given the rapid expansion of digital asset adoption and evolving financial technologies.

With a circulating supply of approximately 58.88 billion XRP tokens, hitting a $9.274 trillion market cap means each XRP token would be valued around $157. This price point aligns closely with projections from crypto analytics platform Telegaon, which forecasts a maximum price near $160 by 2040.

Contrasting Price Predictions

Not all forecasts are as optimistic. For instance, AI chatbot ChatGPT predicts XRP could trade at a more modest $22 per token by 2040, reflecting a more conservative outlook on adoption and market growth. Similarly, Google Gemini’s prediction of about $150 per XRP supports the view that XRP could indeed enter the triple-digit price range by 2040, though opinions vary widely depending on market conditions, regulatory developments, and technological advancements.

XRP’s Utility and Long-Term Prospects

Underlying these predictions is XRP’s growing utility. Unlike many cryptocurrencies that primarily serve as speculative assets, XRP aims to revolutionize cross-border payments. It offers significantly lower transaction costs and faster processing times compared to traditional banking systems, a feature increasingly valued by financial institutions and remittance services.

Moreover, XRP’s integration with RippleNet and partnerships with various banks and payment providers strengthen its case for long-term adoption. If XRP succeeds in carving out a substantial market share in global payments, its market cap could realistically approach a significant fraction of gold’s valuation.

Conclusion

While the prospect of XRP reaching $157 by 2040 requires sustained growth and widespread adoption, it is not beyond the realm of possibility. If XRP’s market cap matches 40% of gold’s, this price would reflect XRP’s transformation into a major financial asset, blending the advantages of digital currency with real-world utility.

As the crypto market matures, investors will be watching how XRP navigates regulatory hurdles, technological innovation, and market dynamics. Should it maintain its momentum and capture increasing market share in payments, the journey to a multi-trillion-dollar valuation could well become a reality within the next two decades.