Bitcoin (BTC -0.80%) has a market capitalization of $2.3 trillion, making it the world's largest cryptocurrency by a wide margin. It has delivered a 19% return in 2025 so far, and it's one of the only cryptocurrencies that consistently sets new record highs.
XRP (XRP -2.32%) is also trading in the green to the tune of 8% this year, and although it recently tumbled, earlier this year it reached the highest price since 2018. In other words, some investors endured a brutal seven-year stretch with almost no gains, primarily because the cryptocurrency's creator, Ripple, was battling legal action from the Securities and Exchange Commission (SEC).
But Ripple's regulatory woes are now resolved, so could XRP be a better buy than Bitcoin for 2026, or is the world's largest cryptocurrency a better investment?
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The case for XRP
Ripple created the Ripple Payments network to allow global banks to send money across borders instantly, no matter what existing infrastructure they use. The company introduced XRP to standardize each transaction and reduce costs, so unlike most other cryptocurrencies, it has a genuine use case in the real world.
For example, a Japanese bank might send XRP to an Italian bank instead of sending Japanese yen, cutting out expensive foreign exchange fees. The cost to send XRP would be just 0.00001 coins, or a fraction of $0.01.
XRP has a total supply of 100 billion tokens, with 60 billion in circulation and the other 40 billion controlled by Ripple. The company gradually releases tokens into circulation to meet demand from institutions, which is what caught the attention of the SEC. The regulator sued Ripple in 2020 and argued that XRP should be classed as a financial security, just like stocks and bonds, which are also issued by companies.
However, the SEC has taken a lighter approach to crypto regulation under President Donald Trump, and so the two parties agreed to settle the dispute in August. This is one of the reasons XRP reached its highest price in seven years, but investors are also enthusiastic about the regulator potentially approving spot exchange-traded funds (ETFs) for the coin.
In theory, ETFs would create a new source of demand from financial advisors and institutional investors, who might have otherwise avoided XRP because holding it through digital crypto wallets is too risky (they can be susceptible to hacks resulting in irrecoverable losses). Bitcoin continues to benefit from the approval of ETFs last year, so it's logical to think they too might be a tailwind for XRP.
The case for Bitcoin
Bitcoin is considered to be a legitimate store of value by a growing number of investors because of its unique features. Unlike XRP, it's fully decentralized, meaning it can't be controlled by any company or person. Plus, its supply is capped at 21 million coins, which can only be earned through a process called mining. This creates the perception of scarcity, which is why Bitcoin is often referred to as a digital version of gold.
Bitcoin's decentralized nature means it doesn't fit the SEC's definition of a financial security, so it was the first cryptocurrency to receive approval for the launch of spot ETFs. These funds now manage $159 billion collectively, and that figure continues to climb. According to Cathie Wood's Ark Investment Management, ETFs could pave the way for global investment managers to allocate as much as $13 trillion to Bitcoin by 2030, representing 6.5% of their total assets.
That is one of three primary catalysts Ark believes will contribute to a Bitcoin price of $2.4 million within five years, representing 2,000% upside from its current price of about $114,000. The other two are Bitcoin's growing perception as a digital version of gold, and its potential to hedge against inflation and economic uncertainty in developing countries.
But that isn't even the most bullish forecast on Wall Street, because Michael Saylor from Strategy predicts Bitcoin will transform the entire financial system, resulting in a 18,500% surge to $21 million per coin by 2045.
The verdict
Although XRP does play a role within Ripple Payments, banks don't have to use it to benefit from instant cross-border transfers because the network also supports fiat currency. Plus, Ripple launched a stablecoin last year called Ripple USD, which might be better suited to these transactions because it avoids volatility.
The price of XRP can fluctuate significantly, leaving banks exposed to losses while they hold it. In fact, it has declined by more than 30% from its peak during the past few months, and since its value isn't directly tied to the success of Ripple Payments, the door might be open to further downside.
Although it's still a speculative asset like XRP, Bitcoin might have a better case for upside from here because of its decentralized nature, which should support its growing status as a digital store of value. I'm not suggesting it will reach the price targets outlined by Wood or Saylor, but it does look like a better investment than XRP heading into 2026.
