Now that Elon Musk is finally leaving the Trump administration, it's time to forget about Dogecoin (DOGE 1.03%). While there was hope earlier in the year that the billionaire tech titan might be able to help push up the price of this meme coin, that simply hasn't happened. For the year, Dogecoin is down a whopping 40%.
But all hope is not lost. There are plenty of other options if you are looking for a low-cost, high-upside cryptocurrency. My favorite pick right now is XRP (XRP -0.16%), which is up a modest 6% for the year. Here's why you should consider it for your portfolio.
Utility coin vs. meme coin
Dogecoin has always been -- and always will be -- a meme coin. Moreover, it was created as an internet joke, so it was never meant to be serious. The only way Dogecoin can increase in value is through hype, buzz, and speculation.
Musk's brief tenure in the White House is proof of that. Even though he had no direct role in any of the White House's crypto policies, the mere fact that he created a government-adjacent group called DOGE -- the same as the ticker symbol for Dogecoin -- created quite a bit of hype and speculation that something big might be coming for Dogecoin. But nothing ever did.
Image source: Getty Images.
In contrast, XRP has real utility. In other words, you can actually use it for something of value. XRP is primarily used as a bridge currency. As such, it can be used to facilitate cross-border transactions, as well as to convert one fiat currency (such as the U.S. dollar) into another fiat currency. All of this runs on the XRP blockchain, and is supported by Ripple Labs, a San Francisco-based tech company that has been around since 2012.
XRP's blockchain technology has already been embraced by large financial institutions as a way to move money around the world in a way that is cheaper and faster than with traditional financial tools. Ripple CEO Brad Garlinghouse has even suggested that the XRP payment network might eventually become even bigger than SWIFT, as it is adopted by more and more global institutions.
Higher upside potential
During the previous crypto bull market rally, Dogecoin soared in value seemingly overnight. It was the first-ever meme coin, and investors piled into it, hoping to become crypto millionaires.
But that was four years ago. In May 2021, Elon Musk appeared on NBC's Saturday Night Live at exactly the moment when many people thought Dogecoin was headed to the moon.
Dogecoin never made it to the moon. In fact, it couldn't even reach escape velocity. Dogecoin reached an all-time high of $0.74, and never recovered. Today, it's trading for $0.20. Never once in its history has it ever broken the $1 mark.
In contrast, XRP has already shown its tremendous upside potential. Yes, it was flatlining around the $0.50 mark for much of 2024, but it then suddenly went parabolic after the U.S. presidential election. At one point, it was up as much as 600% after the election.
Granted, XRP has cooled off considerably since then. It's now trading for just $2, and is down nearly 35% from its 52-week high earlier in the year. But it's still one of the only top cryptocurrencies up for the year.
Analysts and investors remain bullish on XRP's long-term prospects. It could easily double in value, to regain its all-time high of $3.84. Some even think XRP might soar in value to $10 or higher.
Sell Dogecoin, buy XRP
I get the allure of Dogecoin -- it's cheap and it's fun. But investing in Dogecoin just doesn't make sense, especially when it's down 40% for the year. At a time of maximum global macroeconomic uncertainty, the last thing smart investors want to be holding is a dog-themed meme coin with a funny name.
A better option would be XRP, which is still relatively cheap -- just $2, less than a cup of coffee these days! And, at times, XRP trades much like a meme coin. Just a hint or whisper of something big coming for XRP is often enough to send it higher. But at least XRP has some utility to it, and has much higher upside than Dogecoin over the long haul. If you are choosing between XRP and Dogecoin, this one's a no-brainer.
