1 top cryptocurrency to buy before it soars 471%, according to wall street analyst geoff kendrick

Analyst Predicts Massive 471% Surge for This Cryptocurrency

Wall Street analysts don't frequently publish price predictions for cryptocurrencies, largely because digital assets lack the traditional metrics like cash flow or earnings that analysts typically use for valuation. However, Geoff Kendrick, the global head of digital asset research at Standard Chartered, is a notable exception. A veteran strategist with 20 years covering global currencies, Kendrick is a frequent publisher of crypto research, covering everything from Bitcoin to smaller cryptocurrencies.

Kendrick has been bullish on several digital assets, but one particular cryptocurrency has caught his attention, leading him to predict a potential surge of 471% in the coming years. This asset is XRP, one of the earliest and largest cryptocurrencies, created in 2012 and known for its potential in cross-border payments. The XRP network was among the first to handle a high volume of transactions per second, a key technical strength, although the field has become more competitive.

Key Catalysts Driving the Bullish Outlook

Kendrick's bullish call on XRP, made earlier this year, is underpinned by several significant factors:

• Regulatory Clarity: A major cloud hanging over XRP for years was the lawsuit filed by the Securities and Exchange Commission (SEC) against Ripple, the company behind XRP, and its executives. The SEC alleged that XRP was sold as an unregistered security. While the legal battle saw twists and turns, the eventual resolution, particularly with a change in SEC leadership towards a more pro-crypto stance following the November election, led to the agency dropping or settling key cases, including the one involving Ripple. This regulatory clarity significantly boosted XRP's price and removed a major overhang, paving the way for other potential catalysts like spot XRP exchange-traded funds (ETFs).
• Technical Strengths and Use Cases: With the regulatory uncertainty reduced, Kendrick believes the inherent technical strengths of the XRP network and its practical uses can take center stage. Its ability to facilitate quick, low-cost international transfers positions it similarly to stablecoins, which are designed to maintain a stable value. Ripple itself has launched its own stablecoin.
• Increased Adoption and Partnerships: The analyst noted a 50% increase in XRP's annual transaction volume. He also highlighted Ripple's strategy of partnering with large traditional financial institutions as a key advantage for driving adoption compared to competitors.
• Asset Tokenization Potential: Kendrick sees Ripple's move into asset tokenization as another promising catalyst. Tokenization involves representing ownership of physical property or other digital assets on a blockchain, a process considered useful for assets like U.S. Treasury bills and stablecoins.
• Potential for U.S. Spot ETFs: While spot XRP ETFs exist in some international markets, none are currently available in the U.S. Kendrick anticipates this could change soon, with the SEC expected to potentially approve XRP ETFs by the end of the year. He estimates this could unlock substantial inflows, ranging from $4 billion to $8 billion, which would further legitimize XRP for both institutional and retail investors.

Kendrick's Price Targets

Based on these combined factors, Kendrick projects XRP could reach $5.50 by the end of this year and potentially soar to $12.50 by 2028. Achieving the $12.50 target would represent an impressive gain of approximately 471% from current levels (as of the article date, noting the current price of $2.27).

Considerations for Investors

While a 471% prediction is certainly attention-grabbing, it is crucial for investors to approach cryptocurrency price targets with caution. As mentioned, valuing digital currencies is inherently more challenging and subjective than valuing traditional stocks. Cryptocurrencies are also known for their high volatility, meaning prices can fluctuate dramatically.

The resolution of the SEC lawsuit allows Ripple to focus on building out its business and potentially increasing adoption of XRP. However, the competitive landscape has also evolved significantly since XRP's inception.

Ultimately, the use cases and technical foundation of XRP's network are intriguing. While a significant price increase is possible, particularly if factors like falling interest rates and a weakening dollar play out, the asset remains highly volatile. Therefore, it is advisable for investors to treat positions in XRP as smaller, more speculative components of their overall portfolio.