Ripple (XRP) investors have been on a wild ride over the past months, and what a journey it’s been! The cross-border payments-focused coin has emerged as one of crypto’s biggest success stories, skyrocketing over 420% since Trump’s election win in November.
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So, would now be the right time to step away and lean into some other leading coins? Not according to top investor Adam Levy, who sits in the top 4% of TipRanks’ stock pros.
“Even after a stellar run in the last three months, XRP could outperform both Bitcoin and Ethereum over the next year,” Levy opined.
There are a couple of reasons why Levy believes that’s the case. First, the December launch of Ripple USD (RLUSD), a new stablecoin fully backed by U.S. dollar reserves and government bonds. Unlike XRP, which is known for its volatility, RLUSD provides a stable alternative, designed to facilitate faster and more predictable transactions.
“The introduction of a stablecoin could increase adoption among large financial institutions for RippleNet, which uses XRP to process transactions as well as a bridge currency for conversion,” Levy explained.
The company plans to use RLUSD to back tokenized real-world assets, streamlining the transfer of commodities and securities on the blockchain. If successful, this could open the floodgates for institutional adoption and further solidify Ripple’s position in the crypto space.
RippleNet has experienced significant adoption recently, though some banks have remained cautious due to regulatory and trust concerns. However, with a new and very crypto-friendly administration in place and a former adversarial SEC chairman now out of the way, regulatory challenges appear to be easing.
“The new stablecoin should provide another reason they can adopt the faster and cheaper system as well,” Levy further opined.
There’s another potential catalyst at play here. Bitcoin and Ethereum already have spot ETFs, making them the go-to crypto for institutional investors. However, that could change soon, as several companies have filed for spot XRP ETFs with the SEC, potentially driving institutional adoption and boosting demand for the token.
Still, Levy makes the case that economic uncertainty and U.S. trade policies could push investors toward safer assets like Treasury bonds, leading to a sell-off in crypto ETFs. This shift could impact Bitcoin and Ethereum more than XRP, however, which has yet to benefit from ETF-driven inflows.
“In other words,” adds Levy, “the potential for institutional adoption is all upside for XRP, while Ether and Bitcoin already experienced their ETF introductions and now face potential downsides instead.”
While nothing can be taken for granted in this famously volatile space, Levy concludes that, given the above, XRP “looks poised to outperform both the leading cryptocurrencies over the next year or so.” (To watch Levy’s track record, click here)
Disclaimer: The opinions expressed in this article are solely those of the featured investor. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
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