Leading asset manager WisdomTree examined the contrasting roles and market performances of Bitcoin and XRP. This analysis follows WisdomTree’s filing with the U.S. SEC for a spot XRP ETF, adding to its existing Bitcoin fund (BTCW), which has seen $37 million in net inflows since 2024. The report underscored how both assets serve distinct purposes, with Bitcoin positioned as a digital store of value and XRP as a solution for cross-border transactions.
XRP’s Growth Potential Relative to Bitcoin
Despite its real-world utility, XRP remains significantly undervalued compared to Bitcoin. According to WisdomTree, Bitcoin’s market cap stands at $2.037 trillion, dwarfing XRP’s $145.6 billion valuation. To match Bitcoin’s market cap, XRP would need to surge by approximately 14 times, reaching around $34.86 per token. Analysts at Sistine Research suggest that XRP could rise to the $33–$50 range this cycle, while other forecasts, like those from Telegaon, predict a more conservative target of $30 by 2029.
XRP vs. Bitcoin: Supply and Performance Metrics
The report also compared the supply mechanisms and transaction capabilities of the coin and XRP. Bitcoin maintains a hard-capped supply of 21 million coins, establishing its appeal as a scarce asset. In contrast, XRP employs a deflationary model, with each transaction burning a small amount of XRP, gradually reducing the total supply.
Moreover, XRP significantly outperforms the coin in transaction speed and scalability. With the capacity to process 1,500 transactions per second and settlement times measured in seconds, XRP is positioned as a practical solution for instant cross-border payments. Bitcoin, meanwhile, processes only seven transactions per second, with settlement times extending to several minutes.
WisdomTree concluded that for XRP to challenge Bitcoin’s dominance, it would require broader adoption in the financial sector, regulatory clarity, and expanded use cases in global payments.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
Also Read: How High Could XRP Go? Analyst Price Forecast If Market Cap Hits $1.2 Trillion
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