The Ripple asset has not but established itself because the “cryptocurrency of banks.”
XRP processed $1.3 trillion within the second quarter of 2025.
Alexander Velásquez, monetary markets analyst, believes that XRP has excessive potential because of its means to maneuver cash on a world scale rapidly and at low prices. For that reason, he states that he prefers this asset over bitcoin (BTC) and ether (ETH), Ethereum’s native cryptocurrency.
Now, Is that this benefit sufficient to speculate all of the capital in XRP? Earlier than answering this query, it is very important make clear some questions.
Velásquez himself reveals in his most up-to-date report that he has positioned all his capital within the cryptocurrency issued by Ripple Labs. «Effectively, I’ve a confession to make: I began investing not too long ago, however not in any of the businesses that I’ve beforehand analyzed. Actually, I presently have my whole portfolio invested in a single factor: XRP,” he admits.
As well as, he “strongly” recommends the acquisition of XRP “as a result of Ripple has developed an unparalleled infrastructure in SWIFT: a quick, low-cost community that already strikes roughly $5 trillion yearly, with the participation of main banks and central banks.”
Nevertheless, and primarily based on what has been said right here, his place is considerably questionable. It’s that from his function as monetary analyst, the actual fact of declaring that he has all his capital in a single danger asset could increase doubts about its objectivity.
To contextualize his suggestion and make clear potential conflicts of curiosity, Velásquez clarifies: “When you comply with me or have learn any of my earlier articles, you’ll know that every one my analyses, regardless of how optimistic my place, have targeted on corporations through which I’ve no participation.”
What it doesn’t make clear is that the diversification of The portfolio stays a primary rule for danger administration. And much more so in terms of an asset as risky as cryptocurrencies.
John Murillo, enterprise director of B2BROKER, was consulted by CriptoNoticias about this and mentioned: “I’d say that investing all of your capital in a single asset isn’t advisable, it doesn’t matter what it’s. Within the case of cryptocurrencies, there are focus dangers which can be amplified by fixed volatility, liquidity cycles and regulatory uncertainty. The actual fact is that even a single small occasion – from court docket rulings to alternate delistings – can erase months of earnings.”
With these clarifications made, now it’s time to evaluation the explanation why Velásquez chooses XRP over bitcoin or ether.
XRP Ledger Community Pace
Velásquez highlights that Ripple is increasing using XRP by means of its on-demand liquidity (ODL) service, which permits nearly instantaneous worldwide funds with lowered prices.
Within the second quarter of 2025, ODL processed $1.3 trillion in transactionsbenefiting banks like Santander and companions like SBI Remit and Tranglo.
As well as, Ripple collaborates with central banks on digital foreign money pilot initiatives, comparable to these in Bhutan and Palau. This reinforces the potential of XRP as an infrastructure for future CBDCs, a market that might exceed 1.5 trillion {dollars} by 2030. Velásquez additionally states:
Though I imagine that BTC is the most effective asset as a retailer of worth, being one in every of its essential points of interest for being thought of ‘digital gold’, its transaction pace is simply too gradual: it takes 10 minutes to substantiate and it could actually solely course of a most of seven transactions per second (TPS). This additionally makes it tough to scale. XRP, alternatively, helps 1,500 TPS underneath commonplace circumstances, making it greater than 214 instances sooner than Bitcoin, with charges lower than a cent in comparison with Bitcoin’s, starting from $1 to $10 and might even be larger at peak instances.
Alexander Velásquez, monetary markets analyst.
However is that this sufficient to decide on it over bitcoin? Velásquez focuses on transaction pace as the principle argument in favor of XRP over BTC. Nevertheless, That technical distinction doesn’t essentially make Ripple Labs cryptocurrency a greater funding.
Pace and low transaction prices are operational benefits, however they don’t assure long-term worth.
Bitcoin was designed as a safer and decentralized community, prioritizing immutability over pace. As well as, its scalability has improved with options such because the Lightning Community, which permits hundreds of transactions per second to be processed off the principle chain.
Maybe pace is usually a purposeful benefit, however by way of adoption, worth and security, the talk stays open.
Alternatively, it’s obligatory to elucidate why Velásquez speaks of BTC as “digital gold.” It’s because the digital asset shares similarities with the dear metallic comparable to its decentralization and resistance to censorship.
Its provide is restricted to 21 million items and is lowered each 4 years with the halving, which reinforces its shortage. These traits make it a type of “digital gold”, valued as a refuge from inflation and expansive financial insurance policies.
One other concern that have to be highlighted is that BTC tends to understand over timeas seen within the following graph:
For its half, XRP needed to wait nearly seven years to as soon as once more surpass its all-time excessive of $3.31.
XRP and the promise of being the “cryptocurrency of banks”
Velasquez initiatives that XRP may vary between $10.97 and $66.67 in the long run. This means a development potential of between 350% and a pair of,631% in comparison with present values.
These estimates are primarily based on the opportunity of XRP capturing a few of SWIFT’s fee quantity. That is the worldwide system of worldwide transfers that strikes 150 billion {dollars} yearly, though slowly and expensively.
Brad Garlinghouse, CEO de Ripple Labs, estimates that the cryptocurrency may handle as much as 14% of that move by 2030equal to 21 billion {dollars} a yr.
However XRP has not but established itself because the “cryptocurrency of banks.” One other concern to remember is that its use in RippleNet is optionally available, which limits its central function. That’s to say, The analyst makes his projection primarily based on a Garlinghouse estimatewhich we nonetheless have no idea if it will likely be fulfilled or not.
One other various that’s being thought of is the potential integration of XRP with SWIFT. Nevertheless, Up to now it’s a rumor, with out official affirmation.
It needs to be famous that though the creator presents these estimates as an argument in favor of XRP, he doesn’t do the identical for Ethereum. When speaking concerning the community co-created by Vitalik Buterin he says: “Its essential energy lies in sensible contracts and its means to host functions on its community, comparable to Uniswap, in addition to wallets comparable to MetaMask and Belief Pockets.”
On this sense, it factors out that “its use for high-volume funds is just not sensible on account of its TPS of 16.91 and fuel commissions that vary between $0.50 and fewer, and congestion can double the price of commissions in a matter of minutes.”
That’s, it leaves apart different benefits of the community, comparable to its management in stablecoins or tokenized real-world property (RWA), one of many market tendencies.
Customary Chartered, a British multinational financial institution, initiatives that the RWA trade may attain a market capitalization of $2 trillion (trillions in English) by 2028, as reported by CriptoNoticias.
“Ethereum has been operating for over 10 years with none disruption to its mainnet. In our view, the truth that different chains are sooner or cheaper is irrelevant,” says Geoffrey Kendrick, head of digital asset analysis at Customary Chartered.
In the meanwhile, The RWA that inhabit Ethereum exceeds 11.82 billion {dollars}, as seen within the following graph:
Ethereum is prone to seize a good portion of this RWA market. This may generate better exercise within the community and, due to this fact, a sustained demand for ETH for the fee of commissions.
Not like XRP, whose value estimates largely rely upon its future adoption, In Ethereum there’s a steady and sustained use of its ecosystem. It’s a issue that tangibly drives the worth and utility of its native foreign money.
