As of July 2024, XRP is worth $0.50. Based on the current market value, it takes having 2 million XRP in your possession to reach the goal of $1 million in assets. But the nature of xrp millionaire potential is its volatility in price and long-term appreciation potential. As a case based on past performance, XRP went from 0.006 US dollars to 3.84 US dollars in 2017, a 63,900% increase. If one had 260,417 XRP then, the goal of one million US dollars would be achievable. But pay attention to the fact that the cryptocurrency market is very cyclical. For instance, in 2021, XRP dropped to $0.17 due to an SEC lawsuit, a 95.6% drop from its peak, dropping some investors’ assets to 4.4% of their original value.
Based on market demand and supply analysis, Ripple Company transfers 1 billion XRP monthly to meet institutional orders. However, the adoption rate of ODL (On-Demand Liquidity) solutions increased by 30% in 2023, so the cross-border payment value of XRP surpassed 15 billion US dollars, which may enhance its future demand. If the price of XRP appreciates to $5 in the future due to compliance milestones (e.g., by a 70% surge after Ripple’s victory over the SEC in July 2023), it would suffice to meet the target by possessing just 200,000 coins. This forecast price is in alignment with CoinPriceForecast’s 2030 model (with a price forecast range of $4.8- $5.2). On the other hand, if Bitcoin investment requires 16 coins (unit price $62,500) and Ethereum requires 275 coins (unit price $3,636), then xrp millionaire potential of xrp is more suitable for small and medium investors.
Investment strategy also decides goal achievement probability. Suppose that there is a monthly investment of 1,000 US dollars by employing a standard investment strategy. If the XRP price is 0.5 US dollars, 2,000 XRP are purchased monthly. With a cumulative holding of 240,000 XRP over 10 years, if the average annual rate of return is 25% (which is close to the compound growth rate of 2015-2020), assets at the end will be 12 million US dollars. Transaction fees, however, have to be accounted for. For example, the spot transaction fee of Binance is 0.1%, and the 10-year total fee is approximately 14,400 US dollars. Besides that, there are regulatory risks that should not be ignored: In 2020, the SEC charges caused XRP to decline by 60% within one day. When the holding leverage ratio is 5 times, the possibility of forced liquidation is over 90%.
Technically, it takes only $0.0002 to process 1,500 transactions per second (TPS) on the XRP network, which is 1,000 times more cost-effective than Bitcoin. That confirms its continued penetration into the payment segment. While if the percentage of Ripple partnership with central bank digital currencies (CBDCS) is doubled from 20 countries in 2023 to 50 countries in 2030, liquidity of XRP will be boosted by 400%, pushing prices sky-high above historical volatility standard deviation top (an average of 80% annually), one must beware of black swan events. For instance, the FTX collapse in 2022 resulted in XRP losing 34% over the course of a week, meaning the market beta (systemic risk coefficient) was as high as 1.8. Therefore, there is a necessity to invest a maximum of 15% of overall assets in XRP to control risk exposure.
In conclusion, the attainment of xrp millionaire prospect is a function of position holding volume, market cycle and risk management. If the investors purchase 500,000 shares in a bear market time (e.g., when XRP sank to $0.33 in 2022) and pay profits in tranches in a bull market time (e.g., when the estimated high is $2.5 in 2025), they can achieve a net profit of $1.25 million with a return rate of 58.7% annually, much higher than the 10% long-term average of the S&P 500 index. Nevertheless, one needs to keep a watchful eye on the development of the Ripple ecosystem all the time. For example, the 2024 upgrade of the automated market maker (AMM) will boost the size of the liquidity pool by 200%. These kinds of technological advancements can become the prime driving force behind price rallies.