Fri Feb 28 08:40:00 UTC 2025: ## XRP’s Future Uncertain Despite Recent Surge: Motley Fool Analyst
**NEW YORK, NY** – The cryptocurrency XRP experienced a meteoric rise in 2024, exceeding 400% growth and reaching a peak of $3.30 before settling around $2.40, boasting a $140 billion market capitalization. This surge followed a partially favorable court ruling in Ripple’s SEC lawsuit and the US presidential election of Donald Trump, who has voiced pro-crypto sentiments. However, a Motley Fool analyst expresses skepticism about XRP’s long-term prospects.
While XRP’s use case in facilitating faster and cheaper international bank transfers is undeniable, the analyst questions its current valuation. They argue that even if XRP captured the entire banking transaction market, the cost savings wouldn’t justify its current $140 billion market cap, comparable to that of Citigroup. The analyst highlights the importance of reliability and security in banking, areas where established systems hold a significant advantage over a relatively untested technology like XRP.
Although a resolution to the SEC lawsuit could provide a short-term boost to XRP’s price, the analyst believes the current hype is unsustainable. They conclude that while reaching $4 in 2025 is possible, investing in XRP at its current valuation is not recommended. The analyst’s concerns stem from the perceived overvaluation and the inherent risks associated with a relatively new technology competing against established and trusted banking infrastructure. The article concludes with a reminder that opinions expressed are those of the analyst and may differ from The Motley Fool’s premium investing services.
First Piper 