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Bạn đang xem: What is XRP? Here’s why it’s gaining popularity in the crypto space
President-elect Donald Trump said the AI and crypto czar will reform U.S. policy on digital currency.
While Bitcoin has positioned itself as the face of all the cryptocurrencies, XRP, another hot token, is gaining popularity within the crypto space.
Days ago, President-Elect Donald Trump met with Ripple, the company behind XRP. Heavy scrutiny from the U.S. Securities and Exchange Commission has been directed at XRP and Ripple. Unlike current SEC chair Gary Gensler, Trump’s incoming pick for SEC chair, Paul Atkins, is said to be more crypto-friendly and could pull back on overregulation, in part driving the token’s popularity.
With XRP’s price up about 240% year to date as well as a market cap of $121 billion, investors are eager to see how the coin performs in 2025. Many believe that the lucrative value of XRP can potentially skyrocket and become a millionaire maker.
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What is XRP? Is it the next big thing in crypto? Here’s what to know.
What is XRP? When did it start? It’s not a new cryptocurrency
The company Ripple developed the token XRP as a native cryptocurrency of the XRP Ledger blockchain.
Despite its recent surge in popularity, it’s not a new coin. First launched in 2012, the digital asset has been used by some banks and financial institutions to move money in a more efficient way.
Why is XRP so popular?
XRP is “cheaper, faster, more scalable, and environmentally friendlier,” according to Investopedia. The site adds that XRP is more of a global payment system, with faster processing times, cheaper transaction fees, and offers cross-border payments in a more convenient way.
According to Forbes, XRP is currently in the top five largest cryptocurrencies by market cap. XRP and Bitcoin spiked after the 2024 election, as Trump has expressed support of crypto growth and expansion. On the campaign trail, he made promises for a crypto stockpile and to build a crypto reserve (similar to oil reserves).
XRP vs. Bitcoin
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While both Bitcoin and XRP are cryptocurrencies, both have different use cases. Investopedia reports that Bitcoin is more of a “store of value and a medium of exchange,” whereas XRP is a global transaction system.
Is XRP better than Bitcoin?
Is one better than the other? That depends on your specific needs and how you wish to use the coin.
XRP can conduct instant and cheap payments; Bitcoin’s decentralization and transparency allow you to track transactions in a “predictable market that can’t be corrupted by a central authority.”
Bitcoin is the world’s largest cryptocurrency and has a higher value at the moment. It’s still possible, however, for XRP to lead the altcoin space and surpass Bitcoin given the volatility of the crypto space.
SEC allegations
XRP’s clash with the SEC dates back several years.
Last August, the SEC ordered Ripple to pay a $125 million fine for selling XRP tokens as unregistered securities, which was later appealed, and the courts ruled in XRP’s favor. Now that SEC chair Gary Gensler will step down later this month, many are predicting a more crypto-friendly regulation under Trump’s administration.
Is XRP worth buying?
While the future is looking bright for now, The Motley Fool notes that long-term investors may want to consider waiting for some of the crypto hype to dwindle before investing in the token.
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