Will XRP (XRP) Price Reach $6 in 2025?

Cryptocurrency investors have a lot to celebrate these days. Prices of many of the most popular coins have surged over the past year, and the XRP (XRP 4.94%)

Cryptocurrency investors have a lot to celebrate these days. Prices of many of the most popular coins have surged over the past year, and the XRP (XRP 4.94%) cryptocurrency, sometimes called Ripple, is no exception. Its price soared 234% in 2024, but will the good times continue.

Back-to-back years of such strong gains would be exceptional, so how likely is it that the XRP coin could more than double from its current price and reach $6 in 2025? I think the debut of spot exchange-traded funds (ETFs) holding XRP later this year and the crypto-friendly regulatory environment that the Trump administration is creating could help lift its price higher. However, there are also reasons to be skeptical that a $6 XRP price is realistic.

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XRP ETFs could launch this year

The launch of an XRP exchange-traded fund would be the most important bullish catalyst for XRP's price this year. ETFs give investors an easier way to own cryptocurrencies.

You can quickly buy and sell ETFs through standard brokerage accounts. This makes them especially beneficial for investors who may want to invest in cryptocurrencies but don't want to go through the hassle of opening a dedicated crypto wallet or owning the actual coins.

The launch of several Bitcoin ETFs early last year was momentous for the cryptocurrency. At this time last year -- just before those ETFs launched -- Bitcoin's price was around $46,100 -- compared to its current price of about $87,000.

Grayscale and a handful of other financial institutions have already filed applications with the Securities and Exchange Commission (SEC) to launch spot XRP ETFs. Those applications are currently under review, and a decision could come by October. If they're approved, investors who may have wanted to own XRP -- but who didn't want to buy the crypto through the usual methods -- could flock to the ETF.

JPMorgan estimates that investors could pour between $3 billion and $8 billion into XRP ETFs in their first year alone. Such a surge of new money into XRP would certainly benefit the coin's price, though it's uncertain by how much.

A friendly regulatory environment for crypto

Regulation is always a significant factor in any investment, but it has been particularly important for cryptocurrencies. Previous leaders of regulatory agencies viewed crypto with skepticism, but President Trump has shown that under his administration, Washington will take a more crypto-friendly regulatory approach.

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Ripple CEO Brad Garlinghouse said the "Trump effect" has already been felt by his company. "We signed more U.S. deals in the last six weeks of 2024 than the previous six months," Garlinghouse said in early January.

While many cryptocurrencies saw their prices rise after Trump was elected, it's worth mentioning that the optimism can easily fade. For example, Bitcoin's price recently fell to a three-month low.

Still, Trump has set up a "crypto czar," appointed pro-crypto individuals to key positions in his administration, and directed the SEC to reverse its stance on having banks and financial institutions treat cryptocurrencies as liabilities on their balance sheets -- all moves that have naturally fueled optimism about the general outlook for crypto.

Will XRP reach $6 in 2025?

Even if XRP benefits from some substantial catalysts, it's unrealistic to think it'll reach $6 this year. XRP is volatile even by cryptocurrency standards, and it would have to more than double from its current price (as of Feb. 25) to reach $6 per coin.

Also, while the economy looks strong, a few concerning signs have appeared. In February, consumer confidence fell to its lowest level since 2021, and Trump's threats of international tariffs have some economists concerned that rising inflation will rear its ugly head again.

If the U.S. economy slows even mildly, I think it's likely that some of the euphoria surrounding cryptocurrencies will fade, leaving XRP far short of $6 per coin.