Better Meme Coin: XRP vs. Cardano | The Motley Fool (2024)

XRP (XRP 5.18%) and Cardano (ADA -0.46%) are both volatile cryptocurrencies. XRP, the native token of the Ripple payment network, started trading at $0.0058893 in 2013, soared to its all-time high of $3.84 in 2018, but now trades at $0.59. Cardano, the native token of a third-generation blockchain, started trading at $0.025 in 2017, set a record high of $3.09 in 2021, and now trades at about $0.44.

So if you had invested $100 in XRP, your investment would have briefly blossomed to more than $65,200 before shrinking back to about $10,000. That same $100 investment in Cardano would have grown to nearly $12,400 before dropping back to $1,800 today. Should investors still buy either of these meme coins in this choppy market?

XRP investors are looking forward to one major catalyst

XRP is tethered to the Ripple payment network, but the token doesn't get nearly as much attention as its underlying platform. Ripple's network uses a blockchain-based ledger to process real-time gross payments, cross-border transfers, and currency exchange transactions. It claims its approach provides its customers with secure, instant, and "nearly free global financial transactions of any size with no chargebacks."

Several smaller financial institutions -- including Travelex Bank, Tranglo, and Sentbe -- have already adopted Ripple as a cheaper alternative to the SWIFT (Society for Worldwide Interbank Financial Telecommunication) protocol used by most banks. However, all of those clients use Ripple's XCurrent network, which allows them to make those transactions in common fiat currencies instead of using XRP as a bridge currency.

As a result, Ripple's expansion didn't turn XRP into a widely accepted cryptocurrency. Some critics even argue that XRP isn't a "real" cryptocurrency because it wasn't created with the proof-of-work (PoW) or proof-of-stake (PoS) protocols. Instead, Ripple created its entire supply of 100 billion XRP tokens prior to its market debut, locked up 55 billion of those tokens in escrow accounts on its blockchain in 2017, and periodically releases some of those tokens to stabilize its liquidity.

XRP isn't as appealing as Bitcoin (CRYPTO: BTC), which is mined with the PoW method as an asset, and its blockchain doesn't natively support the development of decentralized apps (dApps) like Ethereum (CRYPTO: ETH) and other PoS blockchains. Its price has also been weighed down by an ongoing lawsuit from the U.S. Securities and Exchange (SEC), which alleges that Ripple's offerings of $1.3 billion in XRP tokens over the course of several years constituted illegal sales of unregistered securities. That lawsuit started in December 2020 and entered its final phase this April. If Ripple wins that case or reaches a favorable settlement with the SEC, its price could certainly skyrocket.

Cardano has more long-term advantages

Cardano, like Ethereum, is a PoS blockchain that supports smart contracts and the development of dApps and other crypto assets. However, it was created to process transactions at a faster rate than Ethereum with more predictable fees.

Cardano currently processes its transactions several times faster than Ethereum. Its transaction fees, which are set by the size of a transaction and the necessary computation power, are also more predictable than Ethereum's gas fees, which are determined through a "surge pricing" model based on the network's fluctuating congestion rates.

Cardano created 31 billion tokens during its initial launch, and 26 billion of those tokens were sold to investors through a third-party company. The remaining 5 billion tokens were distributed to the Cardano Foundation, IOHK, and Emurgo. It currently has a circulating supply of 36 billion tokens with a maximum supply of 45 billion tokens. Like other PoS tokens, Cardano can be staked (locked up on its blockchain) for set periods to earn interest-like rewards.

Cardano will go through a major upgrade called the "Chang Hard Fork" by the end of July. That update should increase its speed, strengthen its security measures, and improve its scalability. But even after their latest upgrades, Cardano and Ethereum are both still significantly slower than Solana (CRYPTO: SOL), the world's fastest PoS blockchain.

The bulls expect the Chang Hard Fork to make Cardano's blockchain more appealing to developers and drive the token's price higher. The recent approvals of Ethereum's first spot price ETFs -- which are set to start trading on July 23 -- could also clear the way for similar ETFs for smaller PoS tokens like Cardano and Solana. These tailwinds could limit Cardano's downside potential and bring back the bulls.

The better buy: Cardano

XRP and Cardano are both highly speculative investments, so you shouldn't put any cash you can't afford to lose in either of these tokens. But if I had to pick one right now, I'd buy Cardano because it natively supports smart contracts, it's faster than Ethereum, its developer ecosystem is expanding, and it's still evolving. Ripple's potential victory against the SEC might temporarily drive its price higher, but it doesn't have any clear long-term advantages against other cryptocurrencies.

Leo Sun has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Bitcoin, Cardano, Ethereum, Solana, and XRP. The Motley Fool has a disclosure policy.

Better Meme Coin: XRP vs. Cardano | The Motley Fool (2024)

FAQs

Which is better, Cardano or XRP? ›

Cardano has more long-term advantages

Its transaction fees, which are set by the size of a transaction and the necessary computation power, are also more predictable than Ethereum's gas fees, which are determined through a "surge pricing" model based on the network's fluctuating congestion rates.

What does the Motley Fool recommend for crypto? ›

The Motley Fool has positions in and recommends Aave, Bitcoin, Ethereum, Goldman Sachs Group, Render Token, SEI, and Solana.

What is the best meme coin of all time? ›

Dogecoin (DOGE)

If Bitcoin was the original cryptocurrency, Dogecoin was the original meme coin. Dogecoin was conceived as a parody of cryptocurrencies back in 2013. The eponymous Doge is a Shiba Inu dog that has appeared in memes since 2005.

Can XRP hit $100? ›

Can XRP reach $100? Reaching a $100 price point would mean a market capitalisation of roughly $5.2 trillion for XRP, considering the current circulating supply of about 52 billion. This would be more than four times larger than the current value of all cryptocurrencies combined.

Will XRP ever be worth a lot? ›

If the crypto market cap hits $3 trillion and XRP retains its current 1.10% dominance, its price could ascend to $0.589 by 2025. In a more bullish scenario of the crypto market surging to $10 Trillion, the price of XRP could soar to a staggering $1.96, resulting in a potential 4x return for investors by 2030.

What coin has the potential to 1000x? ›

We have picked Pepe Unchained ($PEPU) as the #1 choice for coins that could soar by 1000x in the long-term. This is because Pepe Unchained offers low transaction fees, high speed, and huge staking rewards.

Which meme coin will explode in 2024? ›

Based on our thorough research and analysis, the top meme coins in 2024 are ButtChain, Turbo, WIF, CorgiAI, and Brett. Let's embark on an electrifying journey into the dynamic of meme coins and discover which ones are poised for a meteoric rise in 2024.

What are the 10 best stocks to buy according to Motley Fool? ›

The Motley Fool has positions in and recommends Alphabet, Amazon, Chewy, Fiverr International, Fortinet, Nvidia, PayPal, Salesforce, and Uber Technologies. The Motley Fool recommends the following options: short June 2024 $67.50 calls on PayPal. The Motley Fool has a disclosure policy.

Does Motley Fool outperform the market? ›

Motley Fool Stock Advisor has a strong track record of stock recommendations with investment returns that have outperformed the broader market over the long term. Investors are still advised to diversify their portfolios with more than just Motley Fool Stock Advisor's picks.

Which meme tokens will explode? ›

Its growth and innovative use cases make it a noteworthy contender. Which Meme Tokens Will Explode? ButtChain, Andy, STRUMP, Floki, and Degen are top contenders for the crown of best meme coin, based on our research and analysis.

Is it still worth buying Cardano? ›

The investment potential of Cardano depends on several factors, such as individual risk tolerance, investment objectives, and market conditions. Many experts believe Cardano is an undervalued investment with significant growth potential due to its wide range of applications in the coming years.

Can ADA reach $1? ›

The current price of the Cardano token is $ 0.00123075. ADA coin price could reach a potential high of $2.02 by the end of 2024. Cardano price, with a potential surge, could go as high as $10.32 by the end of 2030.

Why Cardano is the best coin? ›

Cardano offers a platform for building smart contracts (like digital agreements) and creating decentralised applications while claiming to be more secure and efficient than competitors.

Is it better to buy Ethereum or XRP? ›

Ripple VS Ethereum: The Conclusion

However, when it comes to comparing the actual performance of the two, Ripple is the better blockchain. Not only are XRP transactions faster and cheaper, but they can scale much more than Ethereum.

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