Ripple developed a global payments network called Ripple Payments, which lets banks send money across borders instantly. The company created XRP (XRP 1.76%) as a bridge currency to standardize each transaction, so it's one of just a few cryptocurrencies with a genuine use case.
Bitcoin (BTC 0.86%), on the other hand, is the world's largest cryptocurrency. Although it isn't popular for payments, a growing number of investors consider it a legitimate store of value because of its unique qualities.
Both XRP and Bitcoin set new record highs in 2025, but they are currently on track to end the year in the red as investors pare their bets on cryptocurrencies overall. Which one is more likely to recover in 2026? In my opinion, the answer couldn't be clearer.
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The case for XRP (Ripple)
The Ripple Payments network can save banks a lot of time and money. Without it, two banks using different payment infrastructure would have to use an intermediary to complete their desired transaction, which adds days to the settlement period and increases costs. Ripple Payments allows those banks to transact with one another directly, resulting in instant settlements no matter what existing infrastructure they use.
By using XRP through Ripple Payments, the banks can also cut out costly foreign exchange fees. Instead of an American bank sending U.S. dollars to an Italian bank, it can send XRP instead which would incur a transaction fee of just 0.00001 coins -- or a fraction of one U.S. cent.
But in 2020, Ripple was hit with a lawsuit from the U.S. Securities and Exchange Commission (SEC), which threatened to derail its business model. Since Ripple occasionally issues XRP to banks and institutions, the SEC argued the token should be classified as a financial security, like a stock, bond, or any other instrument typically issued by a corporate entity.
The legal battle weighed on the price of XRP for years, but investors found hope when Donald Trump won the presidential election in November 2024, because he campaigned on a pro-crypto agenda. In July 2025, XRP hit a new high for the first time in seven years in anticipation of an upcoming settlement between Ripple and the SEC, which was then made official in August.
With the legal shackles removed, XRP should -- in theory -- have a green light to trend higher from here. But the token is down 45% from its recent peak, and I'll explain why in a moment.
CRYPTO: XRP
Key Data Points
The case for Bitcoin
Unlike XRP, Bitcoin isn't frequently used in payments. It isn't very popular among banks, and according to crypto directory Cryptwerk, just 6,673 businesses around the world are willing to accept it in exchange for goods and services. Instead, the cryptocurrency's value is typically driven higher by the investment community.
Bitcoin is fully decentralized, so no person, company, or government can control it. It also has a capped supply of 21 million coins, which creates the perception of scarcity, and it's built on a secure and transparent system of record called the blockchain. Because of those features, a growing number of investors consider the cryptocurrency to be a legitimate store of value, akin to a digital version of gold.
This line of thinking continues to pick up steam thanks to the broad availability of spot Bitcoin exchange-traded funds (ETFs), which provide financial advisors and institutional investors with a safe and regulated way to own it. Previously, investors who wanted to buy Bitcoin had no choice but to use a digital crypto wallet or a centralized exchange, both of which present unique risks; wallets are susceptible to hacks, and exchanges sometimes fail. Those issues left investors exposed to total losses.
Wall Street has varying long-term targets for Bitcoin, but most analysts are extremely bullish. Cathie Wood's Ark Investment Management predicts the cryptocurrency could reach $1.2 million per coin by 2030, citing three primary upside catalysts. Then there is Strategy co-founder Michael Saylor, who thinks Bitcoin will transform the entire financial system, resulting in a price-per-coin of $21 million by 2045.
Those price targets translate in to potential upside of between 1,260% and 23,760% from Bitcoin's current price of $88,000.
CRYPTO: BTC
Key Data Points
The verdict
Although XRP has a legitimate use case within Ripple Payments, banks don't actually have to use the cryptocurrency to benefit from instant cross-border transactions, because the network also supports the use of fiat currencies. Therefore, growing adoption of Ripple Payments isn't guaranteed to drive XRP higher, which is partly why the token is struggling to maintain its upside momentum.
Plus, Ripple launched its own stablecoin called Ripple USD (RLUSD +0.02%) in late 2024, which is better suited for transactions because it experiences almost no volatility. The value of XRP can fluctuate dramatically on a daily basis, leaving banks exposed to losses even during brief holding periods. Adoption of Ripple USD might be another reason for XRP's losses during the past few months.
For those reasons, I don't think XRP is a good buy for 2026, independent of Bitcoin's potential performance. However, the growing acceptance of Bitcoin as a store of value within the investment community has been the catalyst for gains during the past few years, and that dynamic is unlikely to shift in 2026. Therefore, I think it's a much better buy than XRP.
