What Is XRP? Is It the Next Big Thing in Crypto? Here's What to Know

While Bitcoin has positioned itself as the face of all the cryptocurrencies, XRP, another hot token, is gaining popularity within the crypto space.

As Bitcoin continues to dominate the cryptocurrency landscape, another digital asset, XRP, has been making waves within the crypto community.

Recently, President-Elect Donald Trump met with Ripple, the company behind XRP, sparking increased attention.

The U.S. Securities and Exchange Commission has also kept a close eye on XRP and Ripple, and Trump's incoming pick for SEC chair could significantly impact the token's future.

Here's a closer look at XRP, its history, and what sets it apart from Bitcoin.

What is XRP? A brief history

Ripple created XRP as a native cryptocurrency for the XRP Ledger blockchain.

Despite its recent surge in popularity, XRP is not a new coin. It was first launched in 2012 and has since been used by some banks and financial institutions for moving money more efficiently.

What makes 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, offering faster processing times, lower transaction fees, and facilitating cross-border payments more conveniently.

According to Forbes, XRP is currently among the top five largest cryptocurrencies by market capitalization.

Both XRP and Bitcoin spiked after the 2024 election, as Trump expressed support for cryptocurrency growth and expansion. During the campaign, he promised to create a crypto stockpile and a crypto reserve (similar to oil reserves).

XRP vs. Bitcoin: What's the difference?

While both Bitcoin and XRP are cryptocurrencies, they have different use cases.

According to Investopedia, Bitcoin is more of a "store of value and a medium of exchange," while XRP is a global transaction system.

Which is better: XRP or Bitcoin?

Is one cryptocurrency better than the other? It depends on your specific needs and how you want to use the coin.

XRP can make instant and cheap payments, while 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 currently has a higher value. However, given the volatility of the crypto landscape, it's still possible for XRP to lead the altcoin space and surpass Bitcoin.

SEC allegations against XRP

XRP's legal battle with the SEC has been ongoing for several years.

In August, the SEC ordered Ripple to pay a $125 million fine for selling XRP tokens as unregistered securities, a decision that was later appealed. The courts ruled in XRP's favor, and now that SEC Chair Gary Gensler will step down later this month, many expect a more crypto-friendly regulation under Trump's administration.

Is XRP a good investment?

While the short-term future of XRP appears promising, long-term investors may want to wait for some of the crypto hype to die down before investing in the token, according to The Motley Fool.