Is XRP Poised to Challenge Bitcoin's Dominance?

Bitcoin has long been the biggest and most valuable cryptocurrency out there, since its inception. But now people think that XRP, the digital coin created by Ripple, could one day become the king in the crypto jungle.

Bitcoin has captured the hearts of traders and investors ever since its introduction by Satochi Nakamoto in 2009.

XRP, on the other hand, came to the scene around 2012. The token is linked to Ripple protocols with the aim of solving complex global banking transactions.

Bitcoin currently has a much higher market capitalization than XRP. Currently, Bitcoin's market cap is around $672 billion. XRP, on the other hand, has a market cap of around $32 billion.

For XRP to surpass Bitcoin, it would need to see massive growth in its market cap from current levels. Bitcoin's cap would also likely need to stagnate or decline for XRP to have a chance.

In terms of growth, both cryptocurrencies have seen major gains but also deep declines. In 2017, XRP gained over 35,000% but lost over 80% of its value by 2019. Bitcoin rose over 1,300% in 2017 before falling 84% by 2018.

When it comes to supply and inflation, XRP has a current circulating supply of over 48 billion. Its total supply is 100 billion, all of which have already been premined. This means no new XRP can be created.

Bitcoin, on the other hand, has a current circulating supply of 18.9 million, which is limited to 21 million BTC by design. New bitcoins are created through mining rewards. XRP thus has a much higher potential token supply than Bitcoin.

The market acceptance of Bitcoin is multi-dimensional. Many people consider gold as more than just a store of value; they see it as a hedge against economic insecurity.

XRP has far less general adoption than Bitcoin. However, it is targeted for use by financial institutions for international payments and liquidity provision. Over 150 entities use Ripple's technology, including banks like Santander, SBI, and SCB.