The cryptocurrency market has been enjoying a strong run thanks to some improving macroeconomic conditions and shifting political conditions. President Donald Trump's election win and return to the White House have been particularly strong catalysts for some cryptocurrencies.
During the past three months, XRP's (XRP -2.68%) token price has risen more than 500%, with most of those gains following Trump's win in November. Hot on the heels of those gains, the crypto world experienced shock waves when Trump announced the introduction of Trump Official, a new cryptocurrency.
After recent developments, it seems clear that the crypto market is entering bold and uncharted new territory. Both XRP and Trump Official could see continued tailwinds connected to the new administration, but which of these cryptocurrencies is the better buy?
Trump Official: The first cryptocurrency from a U.S. president
After an incredible surge, Trump Official now has a market capitalization of almost $8 billion. That's an eye-catching market cap for an asset that has posted its gains thanks to speculation and an underlying element of brand strength. On the other hand, Trump Official is still valued significantly less than some other meme coins.
Notably, Trump explicitly referenced the token as a meme coin when he unveiled his new cryptocurrency. In line with that characterization, the new cryptocurrency isn't backed by much in the way of fundamentals. There's no underlying blockchain development network that's being used to build, run, and scale apps that use Official Trump as a way to pay fees. But the token could wind up having brand strength that lifts it past some leading meme coins.
With Trump back as president, he's arguably the most prominent person in the world. Because Trump Official has his name and his endorsement, it's possible that media coverage will help increase awareness and support for the crypto and push its price higher.
Additionally, Trump Official has a much smaller overall valuation than XRP. With a market cap of roughly $180 billion, XRP already ranks as the world's third-most-valuable cryptocurrency (after Bitcoin and Ethereum), and it could have a much harder time delivering multibagger returns than Trump Official for that reason.
For example, adding an extra $10 billion in market cap would mean a gain of less than 6% for XRP. Meanwhile, that same level of market cap growth would mean the value of a Trump Official token increased 125%. Investors looking to get in on the ground floor and hit a speculative home run could wind up pouring into the Trump Official cryptocurrency. If there's enough buying support, it could turn into a self-fulfilling prophecy.
XRP: Multiple bullish catalysts could be on the horizon
XRP is a cryptocurrency that was created by Ripple Labs -- a U.S.-based financial technologies company. In 2020, the Securities and Exchange Commission (SEC) brought a lawsuit against Ripple Labs, alleging that the company had sold XRP tokens to investors in order to raise funds. The SEC's position was that XRP was a security, and that the company failed to go through the proper regulatory channels needed to register and sell it.
Although Ripple Labs received a relatively favorable court ruling on the matter in 2023, the SEC filed a brief earlier this month to pursue the case on appeal. But there seems to be a good chance that case will be abandoned now that Trump is president again.
In tandem with Trump taking office on Jan. 20, Gary Gensler stepped down from his role as SEC chairman. Gensler, a crypto skeptic, will likely be succeeded by Paul Atkins -- Trump's pick for the role and someone who is perceived to be an ally of the crypto industry. If the SEC under Atkins drops the case against Ripple, it could remove some uncertainty and bolster support among retail investors for XRP. It could also pave the way for XRP to be included in spot exchange-traded funds (ETFs), which could lead to institutional purchasing that sends its token price higher.
Notably, XRP has a much sounder fundamentals compared to Trump Official. Ripple Labs incorporates XRP into its on-demand-liquidity (ODL) software for cross-border payments. If Ripple's ODL service sees substantial adoption, this could help boost XRP's price. The Ripple ecosystem and XRP's token price could also see gains in conjunction with the wider adoption of the company's stablecoin RLUSD, which is designed to avoid crypto market price volatility.
XRP is reportedly also being considered by Trump for inclusion in a U.S. strategic cryptocurrency reserve. Although it's not impossible that Trump Official could be part of such a project, the optics and ethical issues surrounding inclusion could make that outcome much less likely.
The potential for inclusion in a U.S. crypto reserve is a significant advantage for XRP.
Which is the better buy?
Trump Official is still much smaller than XRP in terms of valuation, and its high-profile connection to the new U.S. president could invite a wave of speculative investment. Because of these factors, I actually wouldn't be shocked to see Trump Official significantly outperform XRP in 2025. Its potential for explosive growth is seemingly higher, and a continued bull market for cryptocurrencies could pave the way for huge valuation gains.
But over the long term, I think that XRP will be the better performer and stands as the better buy. While Trump Official's direct connection to the new president creates upside opportunities, it could also set the stage for some significant volatility and downside risk. XRP may have more limited explosive potential in the near term, but it seemingly has more ways to deliver wins for investors.
