XRP is becoming an important contender in the cryptocurrency sector.
Nearly a decade ago, when I started investing, the idea of putting money into Bitcoin (BTC 0.19%) seemed almost reckless, akin to throwing cash away. Early on, cryptocurrencies were often linked to money laundering and viewed as risky investments akin to gambling or playing the lottery.
However, many retail investors embraced the cryptocurrency opportunity. With a blend of hope and curiosity, those who invested in Bitcoin a decade ago and remained patient have outperformed the S&P 500 by nearly 100 times.
Now, it’s no surprise that investors are on the hunt for the next Bitcoin. A notable contender that has gained attention recently is XRP (XRP 2.13%), issued by financial services company Ripple.
Is XRP Set for Growth in 2026?
Factors at both macro and token levels could propel XRP’s price in 2026.
The Federal Reserve has initiated interest rate cuts, and Chief Economist Mark Zandi from Moody’s predicts more easing of monetary policy could be on the way, due to “fragile” economic conditions. He forecasts a 2% GDP and a weak job market, indicating the Fed may cut rates further this year.
Lower interest rates can lead investors to consider more speculative assets like cryptocurrency, which could boost inflows toward smaller tokens like XRP.
XRP vs. Bitcoin: Fundamental Differences
Despite the possibility for growth, XRP differs significantly from Bitcoin. Understanding what has driven Bitcoin’s ascent is crucial, as it has not supplanted fiat currency in global transactions. Bitcoin remains relatively niche.
Currently, around 20 million Bitcoins exist within a total capping of 21 million coins. Bitcoin’s structure causes it to be considered similar to alternative assets like gold, due to its scarcity.
On the other hand, XRP functions as an extension of Ripple rather than a standalone asset like Bitcoin. This distinction implies that investing in XRP involves different considerations than investing in Bitcoin.
Should You Invest in XRP Now?
Investing in XRP hinges on your risk tolerance. If you seek XRP solely for potential explosive growth like Bitcoin, disappointment may follow.
If you can handle volatility and are looking for cryptocurrency exposure, XRP might emerge as a significant investment over time. However, due to the speculative nature involved, only invest in XRP if you can manage the risks associated with its uncertain future.
