Where Will XRP Be in 5 Years?

Core Viewpoint - XRP has experienced significant growth, increasing over 400% since September of the previous year, largely due to the resolution of a lawsuit against Ripple, the company behind XRP, and ongoing investor interest driven by new developments [1]. Group 1: Ripple's National Trust Bank Charter - Ripple is applying for a U.S. national trust bank charter, which could enhance its credibility and accelerate the adoption of its technology [2]. - If approved, Ripple would be able to officially custody assets and manage client funds, facilitating better service for institutional clients and integration into traditional payment systems [2][3]. - A national trust bank is different from a retail or commercial bank, as it cannot accept deposits or make loans, but it would still bolster Ripple's reputation [3]. Group 2: Adoption of Ripple's Technology - The investment thesis for XRP is based on the premise that as banks adopt Ripple's technology, the demand for XRP will increase, subsequently raising its price [3][4]. - Banks are likely to purchase and hold XRP to transact, creating demand pressure and reducing supply on the open market, which could drive prices higher [4]. Group 3: Limitations of XRP Usage by Banks - Despite the potential for increased demand, many banks can utilize Ripple's settlement systems without needing to hold XRP, which limits the direct correlation between Ripple's technology adoption and XRP's price [5]. - The volatility of XRP remains a concern for institutions, as it is significantly more volatile than traditional currencies, making banks hesitant to hold such assets [7].