XRP Outlook: Can Ripple Surpass Bitcoin in 2025?

XRP, the native digital asset of Ripple, is once again in the spotlight as analysts and investors speculate whether it could outperform Bitcoin in 2025. As market conditions evolve, the landscape for altcoins remains uncertain; however, several key developments may position XRP for significant gains in the coming year.

Unlike previous market cycles, Bitcoin’s dominance has surged over the past year — rising from approximately 53% to 62%. This increased dominance signals that altcoins, including XRP, have struggled to outpace BTC’s performance across the broader crypto market. With minimal signs of an altcoin boom during this cycle — apart from a brief moment in November 2024 — many investors are cautiously monitoring any signs of a shift. Still, XRP could be an outlier if specific catalysts play out favorably.

Ripple’s Strategic Push into Global Payments

One of Ripple’s most promising efforts lies in its expanding role in the global cross-border payments industry. This sector has been historically dominated by traditional financial players, but Ripple is carving out strategic inroads thanks to its blockchain technology and enterprise-focused solutions.

Reports suggest that Ripple attempted to acquire Circle, the company behind the second-largest regulated stablecoin, USDC, for $5 billion. While the offer was declined, it unmistakably reflects Ripple’s ambition to deepen its foothold in the stablecoin space — long seen as a crucial entry point to mass crypto adoption due to its transparency and low volatility.

Further signaling its intent, Ripple launched its own stablecoin, RLUSD, earlier this year. While it currently holds a modest $320 million in circulating supply and around $100 million in daily trading activity, the stablecoin already meets MiCA compliance — a significant regulatory benchmark across Europe. This regulatory alignment could help Ripple increase RLUSD adoption and challenge larger players like USDT in the European payments ecosystem.

Potential of an XRP ETF in the U.S.

The launch of spot Bitcoin ETFs in early 2024 marked a watershed moment for crypto, introducing a wave of mainstream investment from institutions and retail participants alike. Many believe a similar product for XRP could be a powerful growth driver.

Industry experts point to XRP’s status as the third-largest non-stablecoin digital asset by market capitalization as a compelling case for future ETF approval by U.S. regulators. Such approval could attract major issuers and institutional backers, paving the way for broader distribution and liquidity.

However, it’s important to note that although ETF approval has historically had immediate positive effects on crypto prices, these surges often lack sustainability in the absence of fundamental value creation. In XRP’s case, its association with Ripple opens doors for leveraging financial products to form new business alliances and extend its use case further.

Impact of Broader Economic Policy

The larger economic climate remains a crucial factor influencing cryptocurrency trajectories. Under the evolving leadership of Donald Trump, whose administration has advocated for transforming the U.S. into a crypto-friendly hub, sentiment toward domestic crypto firms like Ripple appears to be warming.

A potential regulatory renaissance, aligned with economic growth, may give U.S.-based blockchain companies renewed leverage. Ripple, along with names like Coinbase and Kraken, could benefit significantly if the U.S. adopts clear, favorable crypto policies. This uptick in institutional confidence could foster wider adoption of Ripple’s solutions, effectively boosting XRP’s relevance on the global stage.

Related: Expert Advice: Sell XRP If You’re Confused

To summarize, while XRP faces an uphill battle in a Bitcoin-dominated cycle, three factors could tip the scales in its favor by 2025: strategic expansion in cross-border payments, the possible approval of a spot XRP ETF in the U.S., and a macroeconomic environment conducive to domestic crypto innovation. Together, these developments could create a compelling narrative for XRP’s upward momentum in the near future.