XRP, with a market capitalization of $127 billion, has seen a 666% increase over the past five years, outpacing Bitcoin's 169% returns. Bitcoin remains the largest cryptocurrency, valued at nearly $2 trillion as of January 14, leading many investors to explore alternatives like XRP.
Bitcoin, launched in 2009, was created as a decentralized digital currency for online payments without reliance on central banks. XRP, introduced by private company Ripple in 2012, was designed to work with financial institutions to facilitate faster and cheaper cross-border payments.
XRP transactions typically process in three to five seconds with fees under $0.01, while Bitcoin transactions take about 10 minutes with average fees just over $0.80. Bitcoin is now primarily viewed as an investment, often compared to digital gold, whereas XRP occupies a middle ground between investment and payment method.
Ripple's payments network, Ripple Payments, includes an On-Demand Liquidity feature that uses XRP. Banks can convert local currency to XRP for transfers, with recipients converting it back. Ripple has partnered with over 300 financial institutions, though many use Ripple Payments without the ODL feature.
In the second quarter of 2025, $1.3 billion in transactions were processed through ODL, according to Digital Asset Solutions. This volume is considered insufficient to drive significant growth for XRP. Ripple launched a stablecoin, Ripple USD, in December 2024, which could reduce demand for XRP if banks prefer stable assets for ODL.
XRP experienced surges following Donald Trump's election as president and the resolution of Ripple's five-year lawsuit with the SEC in August 2025. The SEC approved the first spot XRP ETFs in November 2025. For further growth, increased usage by financial institutions is necessary.
Bitcoin accounts for nearly 60% of the crypto market's value and has consistently reached new all-time highs in bull markets. XRP has not surpassed its 2018 peak. The Motley Fool Stock Advisor team identified 10 stocks they consider better investments than XRP, noting historical returns like Netflix and Nvidia generating substantial gains from their recommendations.