Hedera (HBAR) Has More Upside Potential Than Ripple (XRP) This Bull Run

Ripple and Hedera are two popular altcoins with strong real-world use cases. But according to crypto analyst Marius, one might have a much higher upside this cycle.

In the ever-shifting landscape of cryptocurrency, identifying tokens with substantial upside potential is a pursuit that sparks endless debate among enthusiasts and analysts alike.

As the current bull run unfolds, attention has naturally gravitated toward altcoins, especially those with clear real-world use cases and a dedicated community.

Two tokens that have consistently featured in discussions are Ripple (XRP) and Hedera (HBAR). Both have carved a unique path in the crypto ecosystem, attracting diverse segments of the investing crowd.

However, according to crypto analyst Marius, one of these tokens might hold significantly more upside than the other.

In a recent video on his YouTube channel 10X by Marius, he delves into the key differences between XRP and HBAR, examining them through the lens of market data, tokenomics, utility, and growth potential.

Both tokens are known for their speed and low transaction costs, making them suitable for cross-border payments.

XRP is the token behind Ripple’s payment network, which is mainly used by banks and financial institutions. It is also used by several remittance services to facilitate faster and cheaper international money transfers.

Meanwhile, HBAR is the native token of Hedera, a Layer 1 network that is different from blockchain networks. It is based on Hashgraph technology, a novel consensus mechanism known for its speed and scalability.

According to Marius, this architecture makes HBAR much faster and more scalable than XRP.

According to the analyst:

Both are interesting, both have their own strengths and weaknesses. Both are used for different things. Ripple is more focused on the financial side of things, while Hedera is focused more on enterprise-grade Web3 infrastructure.

As enterprise use cases grow, so does the footprint of both tokens in the real world. Hedera is being used for several use cases, ranging from supply chain tracking and tokenized carbon credits to digital ID verification.

Its governing council includes tech giants like Google, IBM, and Boeing, showcasing the level of interest in Hedera’s technology.

Market Cap and Supply: A Stark Difference

In terms of valuation, XRP is the heavyweight here, with a market cap of around $140 billion and a fully diluted value close to $240 billion.

In comparison, Hedera has a market cap of just $9 billion, with a fully diluted value around $10 billion.

Because of this, Marius believes HBAR still has far more room to grow. It also has 85% of its token supply already circulating, while XRP is at 58%. That gives HBAR an advantage when it comes to lower dilution risk.

However, both tokens raise centralization concerns. Ripple controls about 50% of all XRP, while Hedera’s council has the majority of HBAR.

According to Marius, this kind of centralized control could influence price dynamics in both directions.

Tokenomics and Tech: Examining the Nuances

Marius also touches upon the tokens’ economics. XRP has a built-in burn mechanism that destroys fees with each transaction, creating deflationary pressure over time.

However, XRP’s regular token sales by Ripple could offset the deflationary impact and add sell pressure.

Both XRP and HBAR currently do not support staking, and they follow different emission models. Marius notes that Ripple’s token release is variable, while Hedera has a locked emission schedule that isn’t fully transparent to the public.

When it comes to tech, Marius argues that HBAR is more innovative. Its Hashgraph consensus allows for faster throughput and higher scalability, which could give it an edge in the long term.

But XRP has the first-mover advantage in global payments and is already deeply integrated into the financial system.

Adoption, Community, and Price Potential

XRP has a massive community and enjoys wide media coverage. Marius points out that the “XRP Army” is one of the most active groups in the crypto space, boasting millions of followers worldwide. In comparison, HBAR’s community is smaller but still quite engaged.

Examining adoption trends, Marius observes that HBAR is gaining momentum with enterprise partners, while XRP has maintained stable growth.

Wallet activity remains stronger for XRP, although HBAR is catching up in terms of community engagement.

On future price outlook, Marius sees XRP potentially reaching $4 to $5 in this bull run. For HBAR, he sets a more ambitious target of $1.5, which would require broader adoption and sustained momentum.

Although XRP has stronger fundamentals and broader adoption, Marius believes HBAR presents a higher asymmetric opportunity due to its smaller market cap, superior tech, and expanding use cases.

While XRP is the safer choice, HBAR might offer the bigger reward if the right catalysts fall into place.