Could XRP (Ripple) Make You a Millionaire in 2025?

Many investors dream of making millions in financial markets. And for many, the cryptocurrency industry has helped turn that vision into a reality. The Ripple network's native token XRP (CRYPTO: XRP) is an excellent example of the explosive potential in this unique asset class.

If you had bought $10,000 worth of XRP in 2015, your stake would be worth more than $2 million today -- a return of 20,700%. A bet on the S&P 500 would be worth just $30,000 after the same time frame. That said, past performance is no guarantee of future results. Let's dig deeper to see if XRP still boasts millionaire-maker potential in 2025 and beyond.

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A focus on real-world utility

Created in 2013, Ripple is a blockchain network designed to tackle real-world use cases like international payments. This industry is currently dominated by arguably archaic systems like the Society for Worldwide Interbank Financial Telecommunication (SWIFT), a money transfer infrastructure created in the 1970s that can take days to process transactions.

Ripple lets users bypass SWIFT by using its native XRP token as a bridge between different currencies. For example, instead of converting U.S. dollars to Mexican Pesos, Ripple could convert the dollars to XRP and then use the XRP to buy dollars, bypassing the intermediaries. This real-world use case could create fundamental demand for XRP, and the Ripple network has some advantages that could give it a sustainable edge.

Unlike SWIFT, Ripple processes transactions in three to five seconds (the network can handle 1,500 transactions per second). It also boasts a remarkably low fee structure of just 0.00001 XRP per transaction, a tiny fraction of a cent. For comparison, Bitcoin transactions cost around $1.90 and can take from 10 minutes to hours, depending on network traffic.

Growing mainstream acceptance

In terms of raw performance, Ripple has fallen behind newer, speed-focused blockchain networks like Solana, which can theoretically process a whopping 65,000 transactions per second. That said, investors shouldn't discount the power of Ripple's branding and established reputation.

Platform developer Ripple Labs has already secured partnerships with financial institutions, including Santander Bank and Canadian Imperial Bank of Commerce. The platform's recent regulatory wins could also open the door for more mainstream acceptance.

In 2020, the Securities and Exchange Commission (SEC) sued Ripple's developer, Ripple Labs, alleging that it sold XRP as an unregistered security. However, in 2023, the developers won a partial victory after a federal judge ruled that XRP sales to retail investors were not securities. While the SEC has appealed this ruling, Ripple's team is confident of victory, with Ripple Labs Chief Executive Officer Brad Garlinghouse calling the appeal a "rehash of already failed arguments likely to be abandoned by the next administration."

Image source: Getty Images.

While this legal back and forth might be offputting to potential investors, over the long term, it may prove healthy for XRP and the cryptocurrency industry as a whole. When these regulatory uncertainties are eventually settled, it could serve as a green light for more institutional investors to get involved in XRP, potentially increasing adoption and promoting price stability.

Is Ripple still a millionaire-maker cryptocurrency?

Within the volatile and speculative world of crypto investing, XRP looks like a solid bet because of its potential real-world utility and branding as a more sophisticated alternative to big names like Bitcoin and Ethereum. The near-term legal challenges against Ripple Labs could eventually become a positive by giving institutional investors more clarity about how they should interact with XRP and the industry as a whole.

However, keep in mind that cryptocurrencies are notoriously volatile, and XRP is no exception. XRP prices have risen 26% in the last five days (as of the time of writing). And these types of rapid price fluctuations could undermine the token's ability to serve as a functional bridge currency, which is its main appeal. Although Ripple still looks capable of making more millionaires, potential buyers shouldn't underestimate the downside risk.

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Will Ebiefung has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Bitcoin, Ethereum, and XRP. The Motley Fool has a disclosure policy.