The $12 Billion Asset Manager Bitwise Has Released a Detailed Report Examining XRP as an Investment Case

Based on this examination, Bitwise projected the asset's potential value from 2025 to the end of the decade.

The $12 billion asset manager Bitwise has set its sights on XRP, providing a detailed analysis of the asset's investment case and offering bold price predictions for the coming decade.

Examining the Capital Asset Pricing Model (CAPM) to determine a valuation target for XRP, Bitwise applied a discount factor to adjust for macroeconomic, regulatory, and competitive risks.

Its analysis, part of a broader report on tokenized assets, included three possible scenarios: a max case, bull case, and bear case for XRP's performance from 2025 to 2030.

The Max Case: Soaring Tokenization Fuels Stellar Gains

In the max case scenario, Bitwise envisions rapid adoption of tokenized assets, generating significant transactional flows and fees for XRP.

This scenario anticipates the global tokenization market to exceed $10.9 trillion by 2030. Bitwise believes that capturing just 1% to 2% of this market could significantly impact XRP's market cap.

XRP’s fees for transactions related to tokenized assets would generate increased on-ledger flows. Accordingly, transaction fees would burn a fraction of XRP, reducing its supply and potentially driving its price.

The projected annual return for XRP is +46%, with the price potentially reaching $29.32 by 2030. Furthermore, Bitwise projects XRP’s market capitalization relative to Bitcoin will rise from 11% to 13.81%. Notably, this estimate assumes that Bitcoin reaches $1 million per token.

The Bull Case: A Tale of Steady Growth

In Bitwise’s bull case scenario for XRP, the firm assumes steady network growth with minimal regulatory hurdles. It expects XRP to grow moderately, with increased institutional partnerships, cross-border flows, and stablecoin usage on XRPL.

The annual return formula yields +27%, with XRP’s price projected to reach $12.70 by 2030. The formula suggests XRP would peak in 2025 at $3.90, just slightly above its all-time high of $3.84.

However, Bitwise projects that XRP could reach $4.94 by 2026, $6.25 in 2027, and $7.91 by 2028. Under this model, XRP would break into the double-digit range by 2029, reaching $10.02 and continuing to $12.68 by 2030.

The Bear Case: A Deep Dive into a Pessimistic Outlook

In a pessimistic bear case scenario, Bitwise expects slower adoption of tokenized assets, leading to lower transactional volumes and, consequently, less on-chain activity.

This scenario envisages limited involvement by major banks and a focus on smaller institutions. Additionally, stablecoins and other cryptocurrencies face stiff competition from traditional financial institutions.

This scenario anticipates a negative growth of 59% per year.

The analysis is based on a historical volatility of ~147%, and the scenario anticipates a significant decline in value due to XRP’s failure to make meaningful progress in its target markets.

This analysis provides a valuable framework for evaluating the potential of XRP in the coming decade, considering various macroeconomic and crypto market trends.

The post Bitwise Predicts Huge Gains for XRP With Max Case Scenario Hitting $29 by 2030 appeared first on The Crypto Basic.

The post Bitwise Predicts Huge Gains for XRP With Max Case Scenario Hitting $29 by 2030 appeared first on The Crypto Basic.