Which Cryptocurrency Will Be the Better Buy in 2025: XRP, Dogecoin, or Bitcoin?

The total value of all cryptocurrencies in circulation soared to a new record high of $3.9 trillion shortly after Election Day on Nov. 5 last year.

The total value of all cryptocurrencies in circulation soared to a new record high of $3.9 trillion shortly after Election Day on Nov. 5 last year. The breakout can be attributed to President Donald Trump's pro-crypto stance and the friendly policies that may follow now that his administration is officially in office.

Between Nov. 5 and Jan. 17 (the date of this writing), XRP (XRP -5.35%) has soared by 539%, Dogecoin (DOGE -9.98%) has jumped by 154%, and Bitcoin (BTC -5.26%) has climbed by 50%.

The Trump administration is a positive catalyst for each of those three popular cryptocurrencies for different reasons, but which one will be the better buy in 2025?

The case for XRP: Friendly regulation

The global banking system is complex, and not every institution uses mainstream payments networks like SWIFT (Society for Worldwide Interbank Financial Telecommunication) to process transactions. As a result, international transfers can take days to settle. In 2012, a company called Ripple created a global payments network, called Ripple Payments, to solve that problem.

The network standardizes payment protocols to allow all banks to communicate with one another, no matter what infrastructure they use. That basically means they can settle transactions with one another directly and instantly. Ripple created the XRP cryptocurrency for banks to use in those transactions, so they can save money on currency exchange fees and other costs.

XRP has a total supply of 100 billion tokens. Around 57 billion are in circulation, whereas the other 43 billion are controlled by Ripple, which releases them gradually each month to meet demand from institutions. Therefore, it's very different from a decentralized cryptocurrency like Bitcoin, which has a capped supply and can't be controlled by any person or company.

That's why the U.S. Securities and Exchange Commission (SEC) sued Ripple in 2020, arguing the XRP token should be a registered financial security (like a stock or a bond). Companies that issue securities must operate under a strict set of rules, so Ripple's business faced significant disruption. However, in August 2024, the lawsuit was mostly resolved when the judge only penalized Ripple with a $125 million fine, which investors viewed as a win.

The SEC is appealing the decision, but investors are speculating the case could disappear entirely with Trump's team now in office. The president's pick to run the SEC, Paul Atkins, is a pro-crypto businessman who currently serves as the co-chairman of an industry advocacy organization called the Token Alliance. He is likely to be confirmed by the Senate very soon, so it won't be long before investors know whether Ripple is finally off the hook.

The case for Dogecoin: Elon Musk

I want to start off by reminding readers that Dogecoin was literally created as a joke by its two founders in 2013. However, it took off in 2021 when Tesla CEO Elon Musk started promoting it on social media, sharing memes and engaging in banter with other enthusiasts.

His support hit a new level on May 8, 2021 when he participated in a Dogecoin-themed skit on Saturday Night Live (SNL). By that point, the token was sitting on an incredible gain of 15,769% for the year, but its record high of $0.73 on the night of Musk's SNL appearance proved to be the peak. Once investors realized he didn't have a proper plan to back up his banter, Dogecoin plunged by more than 90%, and it still hasn't fully recovered.

Dogecoin remained dormant for three years up until Trump's election win on Nov. 5. Musk was a major financial supporter of the president's campaign, and when the crypto markets started to soar, his influence over Dogecoin was rekindled. Shortly after the election, Trump announced he would appoint Musk to lead an initiative to cut down on government spending. It will be called the "Department of Government Efficiency," or DOGE for short, which is a reference to the Tesla chief's favorite cryptocurrency.

There is no indication that Dogecoin will play a role in the project, but that didn't stop investors from pushing it to a new 52-week high of $0.47. With that said, considering it's still below its 2021 high of $0.73, maybe investors are actually being more cautious this time around.

Since there are no concrete fundamentals supporting Dogecoin, there is a real risk this latest rally ends the same way as the last one -- in an eventual collapse of 90% or more.

The case for Bitcoin: A U.S. government reserve, and more

Bitcoin has a market capitalization of $2.0