Monetary market analyst Alexander Velasquez believes that XRP has excessive potential on account of its potential to maneuver funds shortly and cost-effectively on a world scale. For that reason, he says he prefers the asset over Bitcoin (BTC) and Ethereum’s native cryptocurrency, Ether (ETH).
now, Is that this benefit sufficient to speculate your entire funds in XRP? Earlier than answering this query, it is vital to make clear a couple of questions.
Velasquez himself revealed in his newest report that he invested all of his capital in cryptocurrencies issued by Ripple Institute. “Properly, I’ve a confession to make. I just lately began investing, however I wasn’t investing in any of the businesses I analyzed earlier than. In actual fact, I at the moment have my complete portfolio invested in a single factor: XRP,” he admits.
Moreover, he “strongly” recommends buying XRP. “As a result of Ripple has developed an unparalleled infrastructure in SWIFT, a high-speed, low-cost community that already strikes round $5 trillion yearly with participation from main banks and central banks.”
Nevertheless, based mostly on what has been stated right here, his place is considerably questionable. It’s the truth that from his function as a monetary analyst, he declares that he invests all his capital in a single dangerous asset. Questions might come up about its objectivity.
To place his suggestions in context and make clear potential conflicts of curiosity, Mr. Velazquez clarifies: “If you happen to comply with me or have learn my previous articles, you realize that regardless of how optimistic my place could also be, all of my evaluation focuses on corporations that I’m not part of.”
What just isn’t clear is that Portfolio stays the essential rule of threat administration. And much more so in terms of unstable belongings like cryptocurrencies.
John Murillo, Enterprise Director at B2BROKER, was consulted by CriptoNoticias on the matter and stated, “I can say that it’s by no means clever to speculate all of your capital in a single asset, no matter it’s. , there may be focus threat that’s amplified by fixed volatility, liquidity cycles, and regulatory uncertainty. In actual fact, even a single small occasion, from a court docket ruling to an trade delisting, can wipe out months of good points.”
With these clarifications made, it’s time to think about why Velasquez selected XRP over Bitcoin or Ether.
XRP Ledger community pace
Velasquez highlighted that Ripple is increasing the usage of XRP by its on-demand liquidity (ODL) service, which permits near-instantaneous worldwide funds whereas lowering prices.
Within the second quarter of 2025, ODL Processed $1.3 trillion in transactionsbenefiting banks corresponding to Santander and companions corresponding to SBI Remit and Tranglo.
Moreover, Ripple is collaborating with central banks in digital forex pilot initiatives corresponding to Bhutan and Palau. This strengthens the potential of XRP as an infrastructure for future CBDCs. Market more likely to exceed $1.5 trillion by 2030. Mr. Velasquez additionally stated:
I imagine that BTC is the very best asset as a retailer of worth and one of many fundamental sights of being thought-about “digital gold”, however its transaction pace is just too gradual. Verification takes 10 minutes and may solely course of as much as 7 transactions per second (TPS). This additionally makes scaling troublesome. XRP, then again, helps 1,500 TPS underneath customary circumstances, making it greater than 214 occasions sooner than Bitcoin, and costs are lower than 1 cent in comparison with Bitcoin, starting from $1 to $10, and may even be increased at peak occasions.
Alexander Velasquez, Monetary Markets Analyst.
However is that this sufficient to decide on Bitcoin over Bitcoin? Velasquez focuses on transaction pace as the principle argument in favor of XRP over BTC. however, The technical variations don’t essentially make Ripple Labs’ cryptocurrency a greater funding.
Pace and low transaction prices are operational benefits, however don’t assure long-term worth.
Bitcoin was designed to be a safer decentralized community, prioritizing immutability over pace. As well as, options such because the Lightning Community have elevated scalability, making it doable to course of 1000’s of transactions per second off the principle chain.
Maybe pace may very well be a purposeful benefit, however However from an adoption, worth, and security perspective, the controversy nonetheless stays.
However, it’s essential to clarify why Mr. Velasquez speaks of BTC as “digital gold.” It is because digital belongings share similarities with treasured metals, corresponding to decentralization and resistance to censorship.
Its provide is restricted to 21 million items and reduces each 4 years to coincide with its halving, making it much more uncommon. These traits make it a type of “digital gold” and valued as a haven from inflation and expansionary financial coverage.
One other difficulty that should be highlighted is that BTC tends to rise over timeas seen within the following graph.
In the meantime, XRP needed to wait virtually seven years to surpass its all-time excessive of $3.31 once more.
XRP and its promise because the “cryptocurrency of banks”
Velasquez predicts that in the long run, XRP might vary between $10.97 and $66.67. This implies a progress potential of 350% to 2,631% in comparison with the present worth.
These estimates are based mostly on the probability that XRP will seize a portion of SWIFT’s settlement quantity. It is a gradual and costly, however world worldwide cash switch system that strikes $150 billion a 12 months.
Brad Garlinghouse, CEO of Ripple Labs, It’s estimated that cryptocurrencies might management as much as 14% of that circulation by 2030equal to $21 billion yearly.
Nevertheless, XRP has not but established itself as a “banking cryptocurrency.” One other difficulty to remember is that its use in RippleNet is non-compulsory, which limits its central function. In different phrases, Analysts base their forecasts on Garlinghouse estimates.it stays to be seen whether or not that can come to fruition.
One other different being thought-about is the doable integration of XRP and SWIFT. however, It is only a rumor for now and there’s no official affirmation.
Word that whereas the authors current these estimates as arguments in favor of XRP, they don’t do the identical for Ethereum. Talking concerning the community co-created by Vitalik Buterin, he says: “Its fundamental energy lies in its good contracts and talent to host functions on its community, corresponding to Uniswap, and wallets corresponding to MetaMask and Belief Pockets.”
On this sense, it factors out that “with TPS of 16.91 and gasoline charges within the vary of lower than $0.50, it isn’t sensible to make use of it for big funds, and congestion might double the price value in a matter of minutes.”
That’s, ignoring different advantages of networking, together with management in stablecoins and tokenized real-world belongings (RWA). One of many market tendencies.
British multinational financial institution Commonplace Chartered predicts that the market capitalization of the RWA trade might attain $2 trillion (Trillion It’s anticipated to be achieved by 2028, in line with a report by CriptoNoticias.
“Ethereum has been working for over 10 years with none disruption to its mainnet. In our view, the truth that different chains are sooner or cheaper is irrelevant,” stated Jeffrey Kendrick, head of digital asset analysis at Commonplace Chartered.
in the meanwhile, RWA inhabiting Ethereum exceeds $11.82 billion, As seen within the following graph:
Ethereum has the potential to seize a good portion of this RWA market. This may result in extra exercise throughout the community and a sustained demand for ETH for price funds.
In contrast to XRP, whose worth estimation is extremely depending on future adoption, Ethereum makes use of its ecosystem repeatedly and persistently. It is a issue that clearly will increase the worth and usefulness of the nationwide forex.
