Alexander Velásquez, monetary markets analyst, believes that XRP has excessive potential due to its capability to maneuver cash on a worldwide scale shortly 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, you will need to 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 lately, however not in any of the businesses that I’ve beforehand analyzed. In truth, I at the moment have my complete 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.”
Nonetheless, and primarily based on what has been said right here, his place is considerably questionable. It’s that from his position as monetary analyst, the actual fact of declaring that he has all his capital in a single threat asset could elevate doubts about its objectivity.
To contextualize his advice and make clear attainable conflicts of curiosity, Velásquez clarifies: “If you happen to observe me or have learn any of my earlier articles, you’ll know that every one my analyses, irrespective of how optimistic my place, have centered on firms wherein I’ve no participation.”
What it doesn’t make clear is that the diversification of The portfolio stays a fundamental rule for threat administration. And much more so relating to an asset as unstable as cryptocurrencies.
John Murillo, enterprise director of B2BROKER, was consulted by CriptoNoticias about this and stated: “I might 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 very 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 Velocity
Velásquez highlights that Ripple is increasing the usage of XRP by its on-demand liquidity (ODL) service, which permits nearly instantaneous worldwide funds with decreased 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 very best asset as a retailer of worth, being one among its primary points of interest for being thought of ‘digital gold’, its transaction velocity is just too sluggish: it takes 10 minutes to substantiate and it will possibly solely course of a most of seven transactions per second (TPS). This additionally makes it tough to scale. XRP, however, helps 1,500 TPS beneath normal situations, making it greater than 214 occasions quicker than Bitcoin, with charges lower than a cent in comparison with Bitcoin’s, starting from $1 to $10 and might even be greater at peak occasions.
Alexander Velásquez, monetary markets analyst.
However is that this sufficient to decide on it over bitcoin? Velásquez focuses on transaction velocity as the primary argument in favor of XRP over BTC. Nonetheless, That technical distinction doesn’t essentially make Ripple Labs cryptocurrency a greater funding.
Velocity 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 velocity. As well as, its scalability has improved with options such because the Lightning Community, which permits 1000’s of transactions per second to be processed off the primary chain.
Maybe velocity generally is a purposeful benefit, however by way of adoption, worth and security, the controversy stays open.
However, it’s crucial to clarify why Velásquez speaks of BTC as “digital gold.” It’s because the digital asset shares similarities with the valuable metallic comparable to its decentralization and resistance to censorship.
Its provide is restricted to 21 million items and is decreased each 4 years with the halving, which reinforces its shortage. These traits make it a form of “digital gold”, valued as a refuge from inflation and expansive financial insurance policies.
One other problem that should 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 might vary between $10.97 and $66.67 in the long run. This suggests a progress potential of between 350% and a couple of,631% in comparison with present values.
These estimates are primarily based on the potential for 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 might handle as much as 14% of that circulate by 2030equal to 21 billion {dollars} a yr.
However XRP has not but established itself because the “cryptocurrency of banks.” One other problem to remember is that its use in RippleNet is optionally available, which limits its central position. That’s to say, The analyst makes his projection primarily based on a Garlinghouse estimatewhich we nonetheless have no idea if it is going to be fulfilled or not.
One other different that’s being thought of is the attainable integration of XRP with SWIFT. Nonetheless, Up to now it’s a rumor, with out official affirmation.
It must be famous that though the writer 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 primary energy lies in sensible contracts and its capability to host purposes on its community, comparable to Uniswap, in addition to wallets comparable to MetaMask and Belief Pockets.”
In that sense, it factors out that “its use for high-volume funds is just not sensible attributable to its TPS of 16.91 and gasoline 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.
Normal Chartered, a British multinational financial institution, initiatives that the RWA business might 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 quicker or cheaper is irrelevant,” says Geoffrey Kendrick, head of digital asset analysis at Normal Chartered.
In the mean time, The RWA that inhabit Ethereum exceeds 11.82 billion {dollars}, as seen within the following graph:
Ethereum is more likely to seize a good portion of this RWA market. This might generate larger 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 on 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.
