Will $XRP Reach $5? 3 Factors That Could Make That Happen by 2027

The recent price of XRP (CRYPTO: XRP) is around $2.55, but in the coming years, it is very likely that the price will double to $5 or more. However, for that to happen, three specific things need to occur. Let's look at each of these so you can decide whether to invest when these issues arise.

1. Ripple builds a financial value chain even better. Ripple, the company behind XRP, is also responsible for building the features and platforms that the XRP Ledger can offer to the target users of the chain. Those target users are institutional investors and international banks that need to carry out numerous cross-border money transfer transactions. In general, for a cryptocurrency like XRP to provide value to its institutions, it needs to address pain points. If it can solve these pain points and help facilitate core tasks more conveniently, then that is a significant bonus, and that is what Ripple envisions for XRP. The XRP ledger has supported important assets for the financial industry such as stablecoins and also provided the ability to trade and hold real assets like U.S. Treasury bonds. Recently, Ripple also acquired a prime brokerage firm that allows for loans backed by stablecoins as well as some transactions of the brokerage firm to be settled using XRP on the backend. This means that banks using XRP will also benefit from faster transaction closing times if they choose to use Ripple's brokerage on the network, combined with the ability to borrow using their stablecoin collateral, which will be more convenient than transferring money off-chain and into the systems they typically use for those tasks. Ripple may build its systems in the future to provide increasingly more linking capabilities, encouraging users to send their funds onto the XRP ledger as there will be more opportunities to use those funds for core applications. And that will increase the price of this currency over time, potentially by a lot.
2. The adoption by organizations and sovereignty is accelerated. Many banks and institutional investors are experimenting with XRP to replace older, slower, and much more expensive money transfer technologies like SWIFT. This means that over time, it is likely that many banks will move their capital to the XRP network and store it there, increasing the value of the currency and saving them a lot of fees in the process. The more financial businesses choose to use XRP, the higher the demand for this currency. Moreover, some countries, such as Bhutan, are collaborating with Ripple to see if the XRP ledger is the technology they choose to provide their central bank digital currency. If that happens, issuers of such currencies will need to buy and hold XRP to pay for transaction fees. Other countries, such as the UAE, have positioned themselves to use this network for processing payments with their stablecoins. In addition to creating a catchy headline when these bigger players sign up to use XRP or its network, it generates long-term traffic and increases the appeal for others to follow, as transferring money between wallet holders is so cheap that it's almost free. These factors may not be able to push the coin up to $5 on their own, but combined with other bullish drivers, they can certainly contribute to some price increases from now until 2027.
3. Policies and regulations continue to be strongly promoted. Traditionally, Ripple and XRP have faced numerous lawsuits from regulatory agencies in the United States, causing price drops, hindering adoption by institutions, and making investors cautious due to legitimate concerns about legal risks. However, since then, regulators have dismissed those lawsuits and have generally undergone a complete change. Furthermore, with XRP being included in the potential national digital asset reserve in the United States, it may soon receive legal and policy support, reversing its traditional scenario in favor of holders. Soon, the exchange-traded funds on the (ETF) that hold XRP may be approved by the Securities and Exchange Commission, which could lead asset managers offering the proposed ETF to buy more XRP. This could also drive larger trading volumes into the network, supporting higher prices. And all of the above increases the likelihood that this currency will reach 5 dollars in the near future, even though there is still no guarantee that this will happen.