Memecoins
Best Meme Coin: XRP vs Cardano
XRP (XRP 3.81%) and Cardan (ADA -0.75%) are both volatile cryptocurrencies. XRP, the native token of the Ripple payment network, began trading at $0.0058893 in 2013, reached an all-time high of $3.84 in 2018, but is now trading at $0.59. Cardano, the native token of a third-generation blockchain, began trading at $0.025 in 2017, reached an all-time high of $3.09 in 2021, and is now trading at around $0.44.
So, if you had invested $100 in XRP, your investment would have briefly reached over $65,200 before falling back to around $10,000. That same $100 investment in Cardano would have reached nearly $12,400 before falling back to $1,800 today. Should investors still buy either of these? Meme Coins in this hectic market?
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XRP Investors Eagerly Await Major Catalyst
XRP is tied to the Ripple payment network, but the token doesn’t get as much attention as its underlying platform. Ripple’s network uses a blockchain-based ledger to process real-time gross payments, cross-border transfers, and foreign exchange transactions. It claims its approach offers its customers secure, instant, and “nearly free global financial transactions of any size, with no chargebacks.”
Several smaller financial institutions, including Travelex Bank, Tranglo, and Sentbe, have already adopted Ripple as a cheaper alternative to the Society for Worldwide Interbank Financial Telecommunication (SWIFT) protocol used by most banks. However, all of these customers are using Ripple’s XCurrent network, which allows them to conduct these transactions in common fiat currencies instead of using XRP as a bridge currency.
As a result, Ripple’s expansion has not transformed XRP into a widely accepted cryptocurrency. Some critics even claim that XRP is not a “real” cryptocurrency because it was not created with proof of work (PoW) or proof of stake (PoS) protocols. Instead, Ripple created its entire supply of 100 billion XRP tokens before its market debut, locked 55 billion of those tokens in escrow accounts on its blockchain in 2017, and periodically releases some of those tokens to stabilize its liquidity.
XRP is not as attractive as Bitcoin (CRYPTO: BTC), which is mined with the PoW method as an asset, and its blockchain does not natively support the development of decentralized applications (dApps) like Ethereum (CRYPTO:ETH) and other PoS blockchains. Its price has also was weighed down The Securities and Exchange Commission (SEC) has filed a lawsuit against Ripple, accusing Ripple of offering $1.3 billion worth of XRP tokens over several years as illegal unregistered securities sales. This lawsuit began in December 2020 and entered its final stages last April. If Ripple wins this lawsuit or reaches a favorable settlement with the SEC, its price could certainly skyrocket.
Cardano has more long-term advantages
Cardano, like Ethereum, is a PoS blockchain that supports smart contracts and the development of dApps and other crypto assets. However, it was created to process transactions at a faster rate than Ethereum with more predictable fees.
Cardano currently processes transactions several times faster than Ethereum. Its transaction fees, which are set based on the size of a transaction and the computing power required, are also more predictable than Ethereum’s. gas costswhich are determined by a “dynamic pricing” model based on fluctuating network congestion rates.
Cardano created 31 billion tokens when it was initially launched, and 26 billion of those tokens were sold to investors through a third-party company. The remaining 5 billion tokens were distributed to the Cardano Foundation, IOHK, and Emurgo. It currently has a circulating supply of 36 billion tokens with a maximum supply of 45 billion tokens. Like other PoS tokens, Cardano can be staked (locked onto its blockchain) for set periods of time to earn interest-like rewards.
Cardano is set to undergo a major upgrade called the “Chang Hard Fork” by the end of July. This update is expected to increase its speed, strengthen its security measures, and improve its scalability. But even after their latest upgrades, Cardano and Ethereum are still significantly slower than Solana (CRYPTO: SOL), the world’s fastest PoS blockchain.
Bulls expect the Chang Hard Fork to make Cardano’s blockchain more attractive to developers and drive the token’s price higher. The recent approvals of Ethereum’s first spot ETFs — set to begin trading on July 23 — could also pave the way for similar ETFs for smaller PoS tokens like Cardano and Solana. These tailwinds could limit Cardano’s downside potential and bring the bulls back in.
Best Buy: Cardano
Both XRP and Cardano are highly speculative investments, so you shouldn’t invest money you can’t afford to lose in either coin. But if I had to pick one right now, I’d buy Cardano because it natively supports smart contracts, it’s faster than Ethereum, its developer ecosystem is expanding, and it continues to evolve. Ripple’s potential victory against the SEC could temporarily boost its price, but it doesn’t have any clear long-term advantages over other cryptocurrencies.
Sun Leo has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Bitcoin, Cardano, Ethereum, Solana, and XRP. The Motley Fool has a disclosure policy.