Here are XRP Price Predictions for 2030 from Bitwise

A recent investment report from Bitwise has projected several long-term XRP price predictions, presenting a data-driven forecast for where XRP could stand by 2030.

The firm used a valuation model inspired by the capital asset pricing model (CAPM) to build three price scenarios. Notably, each one reflects different outcomes for regulation, adoption, and overall market growth, offering a clear view of what could drive XRP’s value over the next five years.

Bitwise Valuation Metrics for XRP Pricing 

Interestingly, in its forecast, Bitwise included several important variables in its model. Specifically, the model factors in alpha (which captures XRP-specific drivers like regulatory clarity or major institutional partnerships), beta (which measures XRP’s link to the broader crypto market and sits at 1.92), and a market return assumption of 60%, based on Bitcoin climbing to $1 million by 2029. 

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Moreover, the model also adjusts results through a volatility-based discount factor that changes depending on XRP’s historical risk profile.

XRP Price Predictions from Bitwise

Notably, in the bear case, Bitwise expects XRP to fall short in payments and tokenization. The model uses a -50% alpha and a 147% volatility rate, creating a discount factor of 0.23. This scenario produces a steep -59% annual return, with XRP sinking from $3.08 today to just $0.13 by 2030.

Meanwhile, for the bull case, Bitwise assumes XRP holds its current growth pace. The firm doesn’t expect explosive expansion but sees steady adoption and minimal regulatory setbacks. Also, with alpha at zero and volatility around 89%, the discount factor hits 0.41. This leads to a projected annual return of 27%, pushing XRP to about $12.68 by 2030.

However, in the max case, XRP could grab a meaningful slice of the global payments and tokenization markets. Bitwise sets alpha at 1% and assumes lower volatility of 75%, which brings the discount factor to 0.47. This results in a 46% annual return and a potential price of $29.32 in five years. 

At this level, XRP would carry a $2.9 trillion market cap, giving it roughly 13.8% of Bitcoin’s projected market size if Bitcoin reaches $1 million.

Bitwise stressed that XRP doesn’t need to dominate these markets to succeed. Notably, even a small share of trillion-dollar sectors like tokenization could deliver huge upside. The firm also pointed out that increased network use could amplify the burn rate of XRP fees, slowly reducing supply and adding long-term price pressure.

Bitwise Bullish on XRP Futures Growth 

Meanwhile, besides the XRP price predictions, the Bitwise report also analyzed XRP’s structure and long-term value drivers. 

For one, Bitwise broke down XRP’s on-chain into three main functions. Specifically, it powers transaction fees, supports the ledger’s spam control mechanism through reserve requirements, and serves as a bridge currency in multi-asset transfers. 

While some critics question XRP’s real-world utility, Bitwise noted that it sees steady progress in this regard. It pointed out that companies like SBI Remit and MoneyMatch already use XRP-based solutions for fast, cross-border transfers in parts of Asia and other underserved markets.

Bitwise further highlighted the XRP Ledger’s position in the race for asset tokenization. The network already supports tokenized assets and recently rolled out key features like automated market makers, decentralized identity tools, and multipurpose tokens. 

With these factors already in place, the asset manager sees a path for XRP to serve regulated financial institutions looking to tokenize real-world assets. In a previous report, Bitwise even suggested that buying XRP is a clean way of investing in the future of tokenization.

The firm also believes a clearer regulatory landscape will lead to more growth. Following the 2024 U.S. election and a more crypto-friendly administration, XRP gained over 400% in Q4. Bitwise links that rally to rising investor confidence now that legal threats have eased.