Financial Insights That Matter
The crypto market is heating up again. With the fourth Bitcoin (CRYPTO: BTC) halving seven months in the rearview mirror and a crypto-friendly result in the 2024 elections, the leading coins seem poised for another skyrocketing surge. As of Nov. 22, Bitcoin has gained 27% this month, and Ethereum (CRYPTO: ETH) posted a richer gain of 36%.
But the biggest names aren’t always the best buys. The XRP (CRYPTO: XRP) token has soared 136% higher in November. Is XRP a better way to build wealth in the crypto market than Ethereum or Bitcoin?
Are You Missing The Morning Scoop? Wake up with Breakfast news in your inbox every market day. Sign Up For Free »
Generally, Bitcoin and Ethereum should have more value than XRP in the long run.
-
Bitcoin aims to act as a general-purpose system for storing monetary value.
-
Ethereum was built to power automated financial systems and other software apps, which are the foundation of decentralized finance (DeFi).
-
XRP’s mission of providing quick, low-cost payments across international borders is still ambitious and legitimate — but it can’t compare to the larger visions of smart contracts and full-fledged digital currencies.
So, I don’t expect XRP to outgrow Ethereum or Bitcoin forever. I suppose it could happen if another cryptocurrency (or some entirely new financial technology) replaces Bitcoin as the leading “digital gold” or if one of the so-called Ethereum killers provides an objectively superior smart contracts platform. That would be bad news for the old crypto kings but not necessarily good for XRP and its investors.
That being said, XRP has a lot of room to grow before butting heads with Ethereum and Bitcoin. This is the sixth-largest cryptocurrency by total market value today, far behind the giants at the top. It would be particularly shocking to see XRP carry a larger market cap than Bitcoin — but it could multiply in value more than 20 times over without raising that question, and I’d have to assume that Bitcoin wasn’t rising over the same period:
|
Cryptocurrency |
Market Capitalization |
1-Year Price Change |
|---|---|---|
|
Bitcoin |
$1.93 trillion |
167% |
|
Ethereum |
$395 billion |
62% |
|
XRP |
$80 billion |
136% |
Data collected from CoinMarketCap on Nov. 22, 2024.
Bitcoin aims to replace physical gold as a system for storing financial value. That’s about a $14 trillion market today.
The global volume of border-crossing payments is much larger than that, estimated at approximately $190 trillion a year. But the fees, currency exchange costs, and service expenses associated with these massive money flows are far smaller at $193 billion in 2023.
#1a73e8;">Boost Your Financial Knowledge and Achieve Stability
Discover a growing online community dedicated to delivering financial news, tips, and strategies designed to help you manage money effectively, save smarter, and grow your investments with confidence.
#1a73e8;">Top Financial Tips for Saving and Investing
- Personal Finance Management: Master the art of budgeting, expense tracking, and building a strong financial foundation.
- Investment Opportunities: Stay updated on market trends, learn about stocks, and explore secure ways to grow your wealth.
- Expert Money-Saving Advice: Access proven techniques to reduce expenses and maximize your financial potential.