XRP: Is it worth investing or is it another crypto bubble?

XRP has returned to the mark of $3 in 2025 after years of legal battles, and honestly, I can't help but wonder if we are facing a real opportunity or just another inflated bubble in the crypto market.

After enduring years in regulatory purgatory, this token has emerged from the shadows and now everyone is talking about it as if it were the second coming of Satoshi. But with a fluctuating market capitalization between $186-207 billion and too many competitors nipping at its heels, I have my doubts.

The reality behind XRP

Unlike Bitcoin, which at least has the honesty to present itself as digital gold, XRP is marketed as the magic solution for cross-border payments. Yes, it processes transactions in seconds for pennies, but let's be honest: Ripple Labs controls 41.6 billion tokens. Decentralized? Ha, please.

When I got into crypto, I was looking to escape the control of centralized institutions, not to replace traditional bankers with a company in San Francisco that has control over almost half of the supply.

Why some invest in XRP

Alright, not everything is negative. XRP finally has legal clarity after a judge ruled that sales to retail investors are not securities. And yes, it has outperformed Bitcoin in performance this year with 235% compared to 119%.

The cross-border payments market is worth $200 trillion and XRP could take a piece. Ripple has agreements with some banks in Brazil, India, and the Philippines that seem to legitimize its use case.

But let's be realistic, do you really think traditional banks are going to hand over control of their transfers to a crypto company? The same ones that have blocked innovation for decades...

The risks that no one wants to mention to you

The competition is brutal. SWIFT is not dead, it is evolving. JPMorgan and Visa have their own solutions. And stablecoins basically do the same thing without the volatility that scares institutions.

What frustrates me the most is that banks can use RippleNet without having to touch a single XRP token. What's the point then? The price could go up and the technology could succeed, but you as an investor would be left watching from the outside.

My personal opinion

If you are a conservative investor, stay away from XRP like the plague. The volatility will keep you awake at night and there are much better options.

For those of you who tolerate moderate risk, perhaps 2-5% of your crypto portfolio could make sense. But don't get carried away by crazy predictions of "$25-$170" if Ripple gains a certain market share. That's pure fantasy.

Aggressive investors... well, you will do what you want anyway, but don't say I didn't warn you when things get ugly.

XRP represents a high-risk bet that could pay off big dividends or leave you empty-handed. The choice is yours, but remember that in crypto, grand promises rarely materialize as we hope.

And if you decide to take the plunge, at least diversify. Don't put all your eggs in the Ripple basket while Brad Garlinghouse continues to control when and how to release millions of tokens into the market.