XRP (Ripple) Faces Challenges in Potential Growth

XRP (Ripple) has been designed to facilitate instant and low-cost money transfers between global banks through the Ripple Payments network. The cryptocurrency serves as a bridge currency, helping standardize transactions and reducing foreign exchange fees.

However, several structural issues may limit XRP's upside potential. One of these challenges is its extreme volatility, which exposes banks to significant losses when holding onto large numbers of tokens. Additionally, the launch of Ripple USD, a stablecoin, has raised concerns that it could dent demand for XRP and lead to further decline in its value.

A recent prediction suggests that XRP may trade at $0.30 to $0.50 in five years if current trends continue. This assumption is based on the token's past performance, which saw a 90% loss of value within months and subsequent trading below $1 for several years.