What Are The Chances Of XRP Outperforming Bitcoin?

Bitcoin has reached new heights lately, spurred by a growing user base, price volatility, and an expanding ecosystem supporting the protocol. It crossed the $110,000 benchmark on May 21, 2025, and this can be primarily attributed to institutional demand and a wave of optimism and confidence. While the cryptocurrency is set up for more potential gains this year, business-savvy investors know that alternative coins can outperform Bitcoin, notably during bull market cycles. Even modest increases in demand or positive news can prompt outsized price movements. 

Bitcoin is a preeminent global macro asset, but in the years since XRP’s arrival, the world’s fourth-largest crypto has been gaining ground. The value of XRP remains resilient, even in the face of Ripple’s current difficulties with the SEC. A federal judge denied a $50 million settlement proposal, citing jurisdictional and procedural issues in the joint filing. Ripple and the SEC remain committed to resolution despite the setback. XRP is currently trading at $2.413003. Following the XRP news today is crucial if you’re considering XRP as an investment. 

XRP Is A Prominent Altcoin Focused On Cross-Border Payments 

Ripple developed the XRP Ledger to empower financial institutions and payment providers to offer innovative services, including escrow services, digital crypto wallets, and dApps (decentralized applications). XRP is the native token of the XRP Ledger. It guarantees fast, cost-effective, and energy-efficient transactions without needing a central intermediary. 100 billion tokens were created at the time of the XRP Ledger’s launch. Besides XRP, it’s possible to transact with other currencies in the Ripple ecosystem, such as Ripple USD (RLUSD), Sologenic (SOLO), and Salute (SLT). 

International money systems are burdened by high fees, slow processing times, and complex intermediary structures. XRP is a viable long-term solution for cross-border payments, facilitating faster and cheaper transactions; each transfer requires a small amount of XRP to be burnt to ensure security and prevent scams. Ripple’s focus on bank-to-bank settlements has led to partnerships with various financial institutions, such as UAE’s Zand Bank and Mamo. Since XRP uses a consensus protocol that requires relatively low computational power, it’s a suitable means of exchange. 

What Are The Main Drivers Of The XRP Price? 

Much like other crypto assets, XRP can be subject to volatile movements, which means its price increases or decreases over time. The most significant factors that influence XRP’s value are: 

• Regulatory environment: A court ruling indicated that XRP isn’t a security in secondary market transactions. More exactly, XRP can be offered and sold on public exchanges. After years of intense battles, the SEC finally dropped its case against Ripple, boosting XRP’s value. The SEC has postponed making a decision on 21Share’s proposal to launch an XRP ETF. 

• Adoption and integration: XRP is an integral part of the FinTech landscape. Several financial institutions have adopted XRP, including Santander Bank, SBI Remit, American Express, and Cuallix, to name a few. 

• Market sentiment and speculative trading: The current market sentiment for XRP is positive despite geopolitical tensions and trade disputes. Investors are optimistic about XRP’s future performance. Investing in XRP is like investing in foreign currency or gold – you hope that, at some point in the future, you’ll be able to sell it again. 

• Competition from other altcoins: XRP has a lot of competition in the crypto space, with alternatives like Stellar, Ethereum, Cardano, and Solana. Nonetheless, it’s a versatile asset with a track record of innovation and resilience. Access to price information enables you to stay informed about your investment. 

Regarding XRP’s future, opinions are divided. Some analysts are optimistic, predicting a price increase, especially if Ripple and the SEC finalize the settlement agreement, while others debate risks, pointing to economic uncertainty. 

As We Move Into 2025, It Appears To Be A New Era For Ripple And XRP 

In 2025, the SEC ended a four-year dispute with Ripple, reducing the earlier penalty ($125 million) to a $50 million fine. Ripple must repay the profits it earned from institutional sales of XRP, not to mention prejudgment interest, and this outcome carries significant weight for the crypto industry. Despite enthusiasm, experts note that the SEC’s decision didn’t establish a binding legal precedent, so it’s a missed opportunity. Ripple won’t be able to offer more institutional deals for their tokens. Unfortunately, it’s still regarded as the “bad actor”. 

The good news is that the 2024 US presidential election installed a pro-crypto administration in Washington and offered new hope in terms of regulatory clarity. Donald Trump appointed Paul Atkins, a crypto aficionado, as chair of the SEC, acknowledging that digital assets are crucial to making America great again. Moreover, the president-elect wants to set up a US crypto stockpile and suggested that XRP would be included in the national reserve. Of course, future tweaks might still be in play. 

The Success Of RLUSD Could Strengthen XRP’s Position 

Ripple launched a US dollar-denominated stablecoin in December 2024, RLUSD. It fuels multiple use cases in B2B and B2C segments for individuals and corporations, so it’s a reliable option for any user seeking minimal price fluctuations. RLUSD can be used in decentralized finance (DeFi) applications without Ripple’s approval. While the digital asset doesn’t directly impact XRP, positive news about Ripple can boost investor confidence and cause a rapid increase in XRP’s value. RLUSD transactions settle on the XRP Ledger and the Ethereum Virtual Machine, and the demand for XRP will likely intensify. 

Final Thoughts 

Ultimately, it’s difficult, if not impossible, to ascertain whether XRP will overtake Bitcoin. XRP has a substantial number of attractive qualities, yet it’s never reached $4 and is unlikely to break its record of $3,84, even with favorable regulations and institutional adoption. The altcoin has the potential to outperform Bitcoin in certain market environments. However, this refers to relative percentage gains, not market dominance. Before you buy XRP, consider your ability to withstand the “risk” associated with investing because profits aren’t guaranteed. 

If you’re comfortable with short-term market speculation, XRP can deliver returns that outpace Bitcoin, so try to predict and capitalize on price fluctuations. Remember that losses aren’t obstacles but elements of the learning curve.