XRP, the native token of the XRP Ledger, recently experienced a significant climb, reaching a multi-year high of $3.65 last July. This surge represented a remarkable 12-fold increase from its low of approximately $0.30 earlier in 2023. The primary catalyst for this upward momentum was the resolution of the long-standing lawsuit filed by the Securities and Exchange Commission (SEC) against Ripple, the company behind XRP. This legal battle, which began in 2020, accused Ripple of selling its XRP tokens as unlicensed securities.
The lawsuit placed immense pressure on Ripple, leading to the loss of several key customers and prompting major crypto exchanges to delist XRP. However, last year concluded with a favorable outcome for Ripple, as the fine imposed was lighter than anticipated, and the court ruled that XRP was not considered an unlicensed security when sold to retail investors.
Following this legal clarity, major cryptocurrency exchanges began relisting XRP, contributing to its price increase. Additionally, the SEC’s approval of the first spot-price exchange-traded funds (ETFs) and Ripple’s application for a banking charter further solidified XRP’s recovery. Despite these positive developments, XRP’s price has seen a decline of over 30% throughout the past year, as investors are increasingly wary of its long-term viability.
XRP primarily functions as a bridge currency for fiat transactions within Ripple’s blockchain-based payment platform. In 2024, Ripple launched a new stablecoin called Ripple USD (RLUSD), further complicating the landscape for XRP. This stablecoin’s inherent stability and its peg to the U.S. dollar could potentially undermine XRP’s role as a bridge currency.
Given the evolving market, some investors are shifting their focus away from XRP to other cryptocurrencies with broader applications and appeal. One such alternative is Ether (ETH), the native token of the Ethereum blockchain. Ether possesses a wider moat due to Ethereum’s support for smart contracts, which facilitate the development of decentralized applications and various crypto assets. As of late 2025, Ethereum had 31,869 active developers, establishing it as the leading platform for blockchain-based development.
Unlike XRP, Ether functions as a proof-of-stake (PoS) token, which means it cannot be mined but can be staked on the blockchain for rewards. The XRP Ledger, on the other hand, lacks native support for smart contracts or staking, limiting its attractiveness among developers and investors.
Ether is also contending with competition from faster Layer 1 PoS blockchains like Solana; however, it maintains its ground through Layer 2 “rollups” that enhance transaction processing speeds. The Ethereum Foundation has plans for significant improvements—including three major upgrades aimed at enhancing scalability, network efficiency, and reducing gas fees—set to bolster Ethereum’s ecosystem.
These anticipated upgrades are likely to attract even more developers to Ethereum, further increasing demand for Ether. Over the past year, Ether has already seen a nearly 50% rally, positioning it as a more promising investment option compared to XRP. Additionally, with spot-price ETFs for Ether approved since 2024, it has become as accessible to retail investors as XRP and Bitcoin, further solidifying its standing in the cryptocurrency market.
