The cryptocurrency market has been on an extraordinary ride this year, with significant events and trends shaping its future. Trump's election win on Nov. 5 played a crucial role in igniting a surge across the entire crypto space. The value of all cryptocurrencies in circulation recently reached a new all-time high of $3.8 trillion, driving a wave of excitement and speculation.

Unraveling the Crypto Market's 2025 Potential

The XRP Phenomenon

XRP, created in 2012 by Ripple, built a payment network called RippleNet. This network enables banks and financial institutions to transfer funds globally in mere seconds, bypassing traditional currency-exchange fees and transaction costs. XRP was designed to standardize these payments in a digital system. For instance, a U.S. bank could send XRP to a German bank instead of dollars.However, in 2020, the U.S. Securities and Exchange Commission (SEC) sued Ripple, claiming XRP is a financial security. This lawsuit cast a shadow over XRP's price. But in August 2024, the situation partially improved. Ripple was fined $125 million, and the judge ruled that XRP may only be a security in specific circumstances. This was good news for XRP investors. Since Nov. 5, XRP has soared 362% and currently trades at $2.31 per token, although it's still below its 2018 record high of $3.40. There seems to be more potential for growth.

The Dogecoin Story

Tesla CEO Elon Musk's support for Trump during the campaign might have contributed to Trump's success. Musk is a big fan of Dogecoin and regularly promoted it on social media. He even participated in a Dogecoin-themed comedy skit on Saturday Night Live. Since Nov. 5, Dogecoin has gained significantly, with its price rising 139% to $0.39 per token. But this is still below its all-time high of $0.73 set on May 8, 2021. After Musk's SNL appearance, Dogecoin plunged 92% as investors realized there was no real strategy to support its value.After Trump's election, Musk was appointed as the head of a new entity called the "Department of Government Efficiency" (DOGE). While the acronym is a nod to Dogecoin, there's no indication that the token will play a role in the department. The latest rally in Dogecoin resembles its 2021 surge, which ended in pain for late investors. Its ability to create long-term value remains limited as it was created as a joke in 2013.

The Bitcoin Boom

Bitcoin is the largest cryptocurrency with a market capitalization of $1.9 trillion, accounting for over half of the industry's market cap. It set a new record high of over $100,000 per coin last week, although it only climbed 41% since Nov. 5. Bitcoin doesn't have additional utility for goods and services, but it's gaining recognition as a store of value, similar to gold.This year, the SEC approved dozens of crypto-based exchange-traded funds (ETFs), providing a safer and regulated way for financial advisors and institutional investors to buy Bitcoin. Companies issuing Bitcoin ETFs have already seen collective inflows of more than $100 billion, indicating strong demand.Some Wall Street analysts have set ambitious price targets for Bitcoin. Cathie Wood's Ark Investment Management believes it could reach almost $1.5 million per coin by 2030, considering factors like institutional adoption and recognition as digital gold. If the investment community truly adopts Bitcoin as an alternative to gold, it could reach a price of around $929,000 based on the current supply.

The Verdict

Ripple is an innovative company, but the success of RippleNet doesn't necessarily make XRP more valuable. Banks can use RippleNet with regular currencies as well. Some companies have submitted ETF applications for XRP-based funds, which might get approved during the Trump administration. But since XRP hasn't reclaimed its 2018 high, it's not a great store of value.Although Bitcoin is still a speculative asset, it's becoming accepted as a true store of value due to its consistent climb to new highs. This positive investor sentiment gives it a better chance of delivering upside in the short and long term compared to XRP or Dogecoin.