The Best Cryptocurrency to Purchase for $1,000
Look no further than XRP (CRYPTO: XRP) if you’re searching for a cryptocurrency with a strong upside. As of August 14, XRP is only trading at $3.08, up more than 400% since November. Positive growth catalysts for XRP continue to materialize.
Because of all of this, XRP is the most profitable cryptocurrency that you can purchase with $1,000. Let’s examine it more closely.
Price targets for XRP
Online prediction markets, where users make daily trades based on their predictions for the future pricing of cryptocurrencies like XRP, are one method for gauging how high XRP might rise this year.
XRP currently has a 65% chance of reaching $4 this year and a 29% chance of reaching $5, according to internet prediction markets. Both of these price targets seem attainable, given that XRP reached a 52-week high of $3.65 earlier this summer.
Furthermore, Standard Chartered forecast in April that XRP may reach $5.50 this year due to a variety of new growth drivers and solid underlying fundamentals.
Given that XRP is currently trading at little over $3, there is a significant likelihood that its value may rise by up to 80% this year. There aren’t many higher-upside cryptocurrencies for 2025, with the possible exception of Bitcoin (CRYPTO: BTC).
Potential growth catalysts
The good news for cryptocurrency investors is that there are several possible growth drivers at work with XRP. Delivering on even one of them could be sufficient to raise XRP’s price.
The Securities and Exchange Commission is now 95% likely to approve new spot exchange-traded funds (ETFs) for XRP this year, according to Bloomberg. Institutional investors would find it much simpler to gain exposure to XRP using these spot ETFs. According to some projections, this would cause $8 billion in fresh capital to enter XRP. That would most likely contribute to XRP’s price increase.
In addition, the SEC recently concluded its protracted legal battle against Ripple, the business that created the XRP token. In this December 2020 case, it was claimed that XRP was a security and that its sale constituted the sale of unregistered securities. Now that this legal dispute is over, Ripple can resume operations in the US market, which is probably going to lead to fresh expansion for the XRP blockchain ecosystem.
Ripple has already looked into several options to increase XRP’s value. These include embracing new real world asset (RWA) tokenization initiatives and launching a stablecoin in December 2024. RWA tokenization is a potentially multi-trillion-dollar market opportunity, according to leading consultancy firms. Therefore, there is considerably more room for XRP to grow if it captures even a little portion of this market.
But is XRP overvalued?
Additionally, a frequently utilized market indication is currently blinking red. There is a significant discrepancy between the total value locked (TVL) on the XRP blockchain ($88 million) and the market capitalization of XRP ($190 billion). For XRP, this multiple is 2,159. In contrast, the multiple for Solana (CRYPTO: SOL) is 9.6, while the multiple for Ethereum (CRYPTO: ETH) is only 5.7.
This indicates that XRP has been overhyped, if anything, and that there isn’t much actual blockchain activity to justify such a high valuation.
A key date on the calendar
XRP is about to experience a significant moment. By mid-October, the SEC is expected to decide on the new spot XRP ETFs, however, some analysts predict that a decision might be made as early as September. In that sense, it was crucial to conclude the SEC case in August. The SEC was unlikely to approve new ETFs until all legal and regulatory issues were settled.
XRP investments are almost always risky. However, there is a large potential profit along with a significant risk. If you have $1,000 and want a cryptocurrency that has the potential to double in value in a very short amount of time, XRP is a tempting choice.
Do the experts think XRP is a buy right now?
To find the best possibilities, The Motley Fool’s team of knowledgeable analysts uses our exclusive Moneyball AI investment database, which is based on years of investing experience and in-depth examination of thousands of stocks. Did XRP make their list of the top ten stocks to purchase right now?
It can be beneficial to pay attention when our Stock Advisor analyst team makes a stock suggestion. Ultimately, Stock Advisor’s overall average return has increased by 1,062%, outpacing the market by 877.34%, while the S&P has only increased by 185%.
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