A digital currency that may surpass Bitcoin!
London-Rai Today$XRP
The cryptocurrency market has been in a state of increased activity recently, as the prices of major currencies such as Bitcoin and Ethereum have witnessed significant jumps after Bitcoin’s fourth halving last summer, in addition to the favorable atmosphere for cryptocurrencies that coincided with the 2024 US presidential election. Since November 22, the value of Bitcoin has increased by 27%, while Ethereum has recorded greater gains of 36%, according to a report published by “The Motley Fool” and reviewed by “Al Arabiya Business”.
However, while Bitcoin and Ethereum dominate the market, other cryptocurrencies may have significant growth potential, which raises the question: Could Ripple (XRP) be a better option for building wealth than Bitcoin or Ethereum?
Why are Bitcoin and Ethereum more valuable?
Overall, Bitcoin and Ethereum have advantages that make them more stable and attractive in the long run than currencies like Ripple. Bitcoin, designed as a store of value, aims to replace physical gold and is targeting a massive market currently valued at around $14 trillion. Ethereum, designed to support the programmable financial systems and smart contracts that form the backbone of decentralized finance, also has a large market cap that has made it one of the most attractive assets for investors.
On the other hand, Ripple (XRP) seeks to provide fast and low-cost international payments, which sets it apart from other currencies that focus on the function of storing value or supporting financial applications. However, Ripple still has a lot of room to grow before it can catch up with Bitcoin and Ethereum.
Ripple in the Market: Is It Worth Investing?
While Ripple is the sixth largest cryptocurrency by market cap, it is still far behind leaders Bitcoin and Ethereum. Ripple’s market cap is $80 billion as of November 22, up 136% year-over-year, while Bitcoin’s market cap is $1.93 trillion, up 167%, and Ethereum’s market cap is $395 billion, up 62%.
Ripple is targeting the cross-border payments sector, a huge market estimated to be worth $190 trillion annually. But the potential returns from this sector are smaller compared to Bitcoin, as transaction fees and associated services in 2023 amounted to only about $193 billion.
How can Ripple contribute to your investment portfolio?
However, XRP remains an investment opportunity worth considering alongside other major cryptocurrencies. It targets the international payments market and is a pioneer in using blockchain technology for this purpose. As payment systems based on this technology become more widely used, especially by central banks, Ripple could play an important role in the future.
On the other hand, despite the legal challenges facing Ripple, which are expected to be resolved in 2025, the RippleNet network is witnessing significant growth rates, as daily payments have tripled in the last six months, which reinforces positive expectations about the future of the currency.
While Bitcoin and Ethereum remain staples in your investment portfolio thanks to their stability and wide uses, adding Ripple (XRP) could be a good option to boost your cryptocurrency investments, especially with the growing interest in blockchain payments and potential returns in this space.