Leading asset manager WisdomTree examines how much XRP has to grow to overtake Bitcoin

Leading asset manager WisdomTree examined how much XRP has to grow to overtake Bitcoin in one of its crypto comparison reports.

The report, by WisdomTree, an asset manager firm with over $116 billion in assets under management, analyzed the strengths, roles, and market performances of Bitcoin and XRP, two prominent crypto assets.

The report comes shortly after WisdomTree filed with the U.S. SEC for a spot XRP ETF. Notably, the firm already operates the WisdomTree Bitcoin Fund (BTCW). However, the ETF has seen modest traction with $37 million in net inflows since 2024, lagging behind its peers.

XRP Compared to Bitcoin

The WisdomTree report delved into the different purposes both Bitcoin and XRP serve within the crypto space.

According to the firm, Bitcoin, introduced in 2009 by Satoshi Nakamoto, remains the dominant crypto asset, holding over half of the total market cap. It has secured its position as a digital store of value, sometimes compared to gold, and is being adopted by institutions seeking portfolio diversification.

In contrast, XRP was designed with a different mission. WisdomTree explained that XRP aims to improve cross-border financial transactions by increasing efficiency and speed. Unlike Bitcoin’s use case as a hedge against inflation, XRP’s value lies in its real-world utility for financial institutions.

The report highlighted the integration of Ripple’s On-Demand Liquidity service by Tranglo, enabling instant cross-border payments without pre-funded accounts. WisdomTree noted that this example showcases XRP’s potential to enhance global payment systems.

How Much Must XRP Grow to Challenge Bitcoin

Despite its strong utility, XRP’s market valuation is far lower than Bitcoin’s. At the time of the report, Bitcoin had a market cap of $1.9 trillion, while XRP’s valuation stood at $83 billion.

WisdomTree highlighted this large gap and pointed out that for XRP to match Bitcoin’s valuation, its price would need to increase more than twentyfold. Specifically, at the time, XRP’s price would have to increase by 22.9 times to surpass Bitcoin’s market cap.

This figure has since changed, with Bitcoin now boasting a market cap of $2.037 trillion, while XRP’s valuation stands at $145.6 billion at press time. At the current positions, XRP only needs to increase by a lower 14x to catch up to Bitcoin. This is a result of XRP gaining over Bitcoin since December 2024.

With XRP currently changing hands at $2.49, a 14x price increase would lead to $34.86. Interestingly, analysts at Sistine Research believe XRP has the potential to reach $33 to $50 this cycle.

Last August, analyst Bobby A suggested XRP could hit $33. However, Telegaon analysts only see XRP claiming the $30 range by 2029, four years later. Notably, by the time XRP claims this mark, Bitcoin will likely have soared past the current $2 trillion valuation.

WisdomTree Compares XRP and Bitcoin Supply Mechanisms and TPS

Meanwhile, in its report, WisdomTree categorized both XRP and Bitcoin as Layer-1 payment cryptos but highlighted their contrasting appeal.

Bitcoin appeals with scarcity, boasting a hard-capped supply of 21 million coins and a decentralized architecture. In contrast, XRP appeals to institutions, presenting fast and cost-effective solutions for cross-border liquidity management.

Major element of XRP’s long-term proposition is its deflationary supply mechanism. As reported by WisdomTree, every transaction on the XRP Ledger burns a small amount of XRP, permanently reducing the total supply. This gradual decrease sets it apart from Bitcoin’s static supply.

The report also touched upon performance metrics, especially transaction speeds. XRP’s network can handle up to 1,500 transactions per second, settling in just a few seconds. In comparison, Bitcoin processes roughly seven transactions per second, with settlement often taking several minutes.

Notably, WisdomTree argued that XRP would need a dramatic transformation to challenge Bitcoin’s market dominance. Major drivers would include wider adoption of XRP for remittances and payments, regulatory clarity that invites institutional investment, and the expansion of use cases.