Can XRP Reach $5? Unpacking the Factors for Ripple's Next Price Surge

by Crypto Hobby

Updated August 29, 2025

XRP cryptocurrency token rising upwards.

Ripple's native token, XRP, is currently trading around the $3 mark, a level it hasn't seen since 2018. Investors are eagerly anticipating a swift climb to $4 and then $5, hoping to capitalize on another bull run. The journey to reclaim the $3 threshold took seven years, and the community is hopeful the next surge will be significantly faster.

Key Factors for XRP to Reach $5

XRP needs to increase its market capitalization to at least $275 billion.

To achieve the $5 price point, XRP must overcome its current circulating supply of 55 billion tokens and significantly boost its market capitalization. This requires an influx of approximately $97 billion, which analysts suggest will likely necessitate attracting new investors. Existing XRP holders may be less inclined to invest further once the price surpasses $3.

Potential Catalysts for Investor Growth

Several factors could drive the necessary increase in new investors for XRP:

Broader Market Bull Run: A general surge in the cryptocurrency market could attract global attention and new capital.
Expansion of Ripple's Services: Increased adoption of Ripple's payment solutions by more global banks and fintech firms, leveraging blockchain technology, could boost XRP's utility and demand.
Regulatory Clarity: A resolution to the ongoing lawsuit with the SEC would provide much-needed regulatory certainty, potentially unlocking significant investment.

Current Market Position

Ripple's current market cap stands at $178 billion, struggling to break the $200 billion barrier. Only Bitcoin and Ethereum currently hold market caps above $200 billion, with Bitcoin at $2.2 trillion and Ethereum at $552 billion. XRP's market cap is less than a third of Ethereum's, indicating a substantial gap to bridge to reach the $5 target.