XRP has kept up with both Bitcoin and Ethereum in 2025, but does that make it the smartest cryptocurrency investment?
When investors survey the cryptocurrency market, only a handful of names consistently dominate the conversation. The most established players are Bitcoin and Ethereum, and both have delivered gains of roughly 30% so far this year (as of Oct. 2) — outperforming the S&P 500 (^GSPC 0.01%).
XRP (XRP -1.38%) has kept up with these digital assets, outperforming both for much of the year before surrendering some of its gains. Considering XRP’s performance, investors are beginning to ask an important question: Could XRP be the smartest cryptocurrency to buy right now?
Below, I’ll dig deeper into XRP’s momentum, competitive positioning, and potential role in a diversified portfolio.
What is XRP and what is its competition?
XRP is the native cryptocurrency of Ripple’s payment network. It’s primary value proposition is to make international money transfers faster, cheaper, and more efficient. Payments on the XRP ledger generally settle within seconds and carry negligible fees, offering a dramatic improvement over the legacy banking system, where international wires can take days to settle and often cost between $20 to $50 per transfer.
The most direct comparison to XRP is the SWIFT network, which has long served as the backbone of global financial messaging. While SWIFT itself isn’t a true payments provider, it functions as an intermediary system that enables banks and corporations to communicate settlement instructions.
XRP seeks to eliminate this intermediary model by reducing operational friction, thanks to its more streamlined approach, saving on both the time and costs associated with making cross-border payments. This positions XRP as more than just another speculative cryptocurrency — it’s a potential disrupter offering legitimate utility in the trillion-dollar global cross-border transactions market.
SWIFT isn’t standing still. The network has begun rolling out blockchain and tokenization pilots, partnering with several major financial institutions to test use of distributed ledger technology (DLT) for cross-border payments.
Are there other cryptocurrencies that are smarter buys?
There’s no question that global financial infrastructure is overdue for digital modernization, and XRP has earned real credibility because it offers a compelling solution. Whether it’s truly the smartest cryptocurrency to buy right now is debatable.
Beyond the challenges from SWIFT’s enormous footprint and new blockchain ambitions, XRP also contends with other crypto projects with similar goals, such as Stellar and Algorand.
Perhaps even more formidable competitive headwinds stem from stablecoins like Tether and USDC. Because banks and corporations generally prefer settling transactions in real-world denominations such as the U.S. dollar or other fiat currencies, stablecoins may present a more practical bridge than XRP’s native token. These competitive dynamics may cap XRP’s long-term upside, as mainstream adoption remains limited and institutional use cases take time to evolve.
For investors considering the broader crypto landscape, several alternatives may offer more compelling value:
- Ethereum: As the backbone of decentralized finance (DeFi), Ethereum is arguably the most versatile blockchain ecosystem — powering everything from smart contracts to non-fungible tokens (NFTs).
- Bitcoin: With its fixed supply of 21 million coins, Bitcoin is often viewed as digital gold and an inflation hedge.
- Solana: An emerging leader in DeFi applications and high-speed payments, Solana is gaining traction as a scalable and inexpensive ecosystem for developers.
Although XRP might play an important role in the evolution of cross-border transactions, there are a number of smarter opportunities to make a $1,000 investment in the crypto realm right now. For investors seeking durable growth, diversification, and more compelling adoption trends, Ethereum, Bitcoin, Solana, as well as select stablecoins appear better-positioned to deliver long-term value.
Adam Spatacco has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Bitcoin, Ethereum, Solana, and XRP. The Motley Fool has a disclosure policy.
