Leading asset manager WisdomTree examines how much XRP has to grow to overtake Bitcoin in one of its crypto comparison reports.
In the report, WisdomTree, a leading asset manager with over $116 billion in assets under management, analyzed the strengths, roles, and market performances of Bitcoin and XRP, two of the most prominent crypto assets.
The report came up shortly after WisdomTree filed with the U.S. SEC for a spot XRP ETF. Notably, the firm already operates the WisdomTree Bitcoin Fund (BTCW), though the ETF has seen modest traction. It has seen just $37 million in net inflows since 2024, well behind its peers.
XRP Compared to Bitcoin
The WisdomTree report clarified the different purposes both Bitcoin and XRP serve within the crypto space. According to the firm, Bitcoin, introduced in 2009 by Satoshi Nakamoto, remains the most dominant crypto asset, commanding over half of the total market cap.
It has secured its position as a digital store of value, with some likening it to gold, and is increasingly adopted by institutions looking for portfolio diversification.
On the other hand, XRP was designed with a different mission. WisdomTree explained that XRP looks to improve cross-border financial transactions through efficiency and speed. Unlike Bitcoin’s use case as a hedge against inflation, XRP’s value rests in its real-world utility for financial institutions.
The report highlighted the integration of Ripple’s On-Demand Liquidity service by Tranglo, which allows instant cross-border payments without requiring pre-funded accounts. WisdomTree noted that this example shows XRP’s potential to improve global payment systems.
How Much XRP Must Grow to Challenge Bitcoin
Despite its strong utility, XRP’s market valuation remains far below Bitcoin’s. At the time of the report, Bitcoin had a market cap of $1.9 trillion, while XRP’s valuation stood at just $83 billion.
WisdomTree called attention to this large gap and pointed out that for XRP to match Bitcoin’s valuation, its price would need to increase more than twentyfold. At the time, the XRP price would have to increase specifically by 22.9 times to surpass Bitcoin’s market cap.
This figure has changed since then, with Bitcoin now boasting a market cap of $2.037 trillion, while XRP’s valuation now stands at $145.6 billion at press time. At the current positions, XRP only needs to increase by a lower 14x to catch up to Bitcoin. This is a result of XRP gaining over Bitcoin since December 2024.
With XRP currently changing hands at $2.49, a 14x price increase would lead to $34.86. Interestingly, analysts at Sistine Research believe XRP has the potential to reach $33 to $50 this cycle.
Last August, analyst Bobby A suggested XRP could hit $33. However, Telegaon analysts only see XRP claiming the $30 range by 2029, four years later. Notably, by the time XRP claims this mark, Bitcoin will likely have soared past the current $2 trillion valuation.
WisdomTree Compares XRP and Bitcoin Supply Mechanisms and TPS
Meanwhile, in its report, WisdomTree categorized XRP and Bitcoin as Layer-1 payment cryptos but made clear their contrasting appeal.
Bitcoin boasts the appeal of scarcity, with a hard-capped supply of 21 million coins and decentralized architecture. Conversely, XRP appeals to institutions, presenting fast and cost-effective solutions for cross-border liquidity management.
WisdomTree observed that a major element of XRP’s long-term proposition is its deflationary supply mechanism. Every transaction on the XRP Ledger burns a small amount of XRP, permanently reducing the total supply. This gradual decrease sets it apart from Bitcoin’s static supply.
The report also highlighted performance metrics, especially transaction speeds. XRP’s network can handle up to 1,500 transactions per second, settling in just a few seconds. In contrast, Bitcoin processes roughly seven transactions per second, with settlement often taking several minutes.
Notably, WisdomTree argued that XRP would need a dramatic transformation to challenge Bitcoin’s market dominance. Major drivers would include wider adoption of XRP for remittances and payments, regulatory clarity that invites institutional investment, and the expansion of use cases.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
