Insight: Standard Chartered Envisions XRP Scaling to $12.5 by 2028, Potentially Eclipsing Ethereum
Summary of Projections:
Standard Chartered’s latest analysis forecasts a substantial surge in XRP’s value, catapulting it to $12.5 by 2028, marking an impressive 550% increase from its current trading price of $1.90. This anticipated growth trajectory positions XRP favorably to potentially surpass Ethereum and claim the second spot among cryptocurrencies based on market capitalization.
Expert Evaluation:
Geoffrey Kendrick, the global lead for digital assets research at Standard Chartered, shared insights regarding the prediction. “We anticipate XRP’s market cap surpassing Ethereum’s by the conclusion of 2028,” he highlighted. With XRP presently holding a market capitalization exceeding $110 billion, it stands as the fourth-largest cryptocurrency, trailing Bitcoin, Ethereum, and Tether.
Context in the Market:
At present, Ethereum commands a market capitalization of around $183 billion, with XRP previously reaching a peak of $190 billion in January. Recent enhancements within the XRP ecosystem stem from Ripple’s settlement with the SEC, surmounting regulatory hurdles that historically impeded its advancement. Ripple’s CEO, Brad Garlinghouse, accentuated the positive ramifications of this resolution, including a $50 million settlement without an admission of culpability.
Analysis of Impact:
Kendrick envisions Ripple potentially seeking SEC endorsement for XRP ETFs by the third quarter of 2025, anticipating an initial influx of $4 to $8 billion in investments within their inaugural year. This forecast aligns with JPMorgan’s evaluation, which suggests that XRP ETFs might mirror the successful investment patterns shown by Bitcoin and Ethereum ETFs. Furthermore, Kendrick argues that XRP’s inherent function in cross-border transactions positions it advantageously amid the growing utilization of digital assets, notably stablecoins.
Furthermore, Kendrick’s assessment underscores the evolution of the XRP Ledger (XRPL) from a “payments chain” to a “tokenization chain,” pointing towards its potential for expanded applications within the cryptocurrency realm. He draws parallels between XRPL and Stellar, highlighting the successful tokenization endeavors on Stellar, like the launch of Franklin Templeton’s OnChain US Government Money Fund.
Concluding Remarks:
In essence, Standard Chartered’s forward-looking projections paint a rosy picture for XRP, envisioning a surge to $12.5 by 2028 along with the possibility of outshining Ethereum in terms of market capitalization. Despite persistent challenges such as a smaller developer base and a low fee model, the strides in regulatory frameworks and market acceptance might furnish the necessary impetus for XRP’s advancement. The digital currency landscape remains in a state of flux, with XRP’s trajectory closely watched by discerning investors and analysts alike.
