3 Reasons Bitcoin Could Outperform XRP (Ripple) and Ethereum Over the Next Year

Cryptocurrency markets are in a period of rapid evolution, with regulatory clarity, institutional adoption, and technological innovation driving divergent paths for leading digital assets. Over the next year, Bitcoin (BTC) is positioned to outperform XRP (XRP) and Ethereum (ETH) due to three key advantages: regulatory certainty, institutional momentum, and foundational upgrades. Below, we break down the case for Bitcoin’s dominance in 2024–2025.

Ask Aime: Will Bitcoin outperform XRP and Ethereum in the next 2 years due to regulatory momentum?

1. Regulatory Clarity: Bitcoin’s ETFs vs. XRP’s Legal Limbo

Bitcoin’s spot exchange-traded funds (ETFs) have been a game-changer. The SEC’s January 2024 approval of these ETFs unlocked unprecedented institutional capital, driving Bitcoin’s price to an all-time high of $106,140 by December 2024. Funds like BlackRock’s $15 billion Bitcoin allocation and Fidelity’s $9 billion position highlight this shift.

Ask Aime: Why is Bitcoin poised for dominance in 2024?

In contrast, XRP remains embroiled in the SEC’s multi-year lawsuit, which threatens its classification as a security. While a federal court ruled in 2023 that XRP is not a security, the SEC’s October 2024 appeal has kept the coin in regulatory limbo. Analysts warn that if the SEC prevails, XRP’s market cap could plummet by 50%, as institutional investors retreat.

Ethereum also faces hurdles, though less existential. The EU’s MiCA regulation (effective late 2024) banned algorithmic stablecoins and imposed strict reserve requirements, forcing issuers like Tether and Circle to adjust strategies. While this has not stifled Ethereum’s growth, it underscores a broader regulatory landscape that Bitcoin navigates more smoothly.

2. Institutional Adoption: Bitcoin’s Dominance in Capital Flow

Bitcoin’s institutional adoption is unmatched. Mining firms like Marathon Digital and Riot Platforms saw stock gains of 590% and 350% in 2024, respectively, as investors bet on Bitcoin’s role as a store of value. Even traditional banks like BNY Mellon expanded crypto services, leveraging USDC and other stablecoins.

XRP’s institutional partnerships, while growing, remain niche. Ripple’s collaborations with banks like Santander and Bank of America focus on cross-border payments, but these use cases have yet to scale significantly. Meanwhile, Ethereum’s ecosystem faces competition from Layer 2 solutions like Solana and Sui, which offer faster transactions and lower fees, diverting value away from its Layer 1.

The data speaks plainly:
- Bitcoin’s market dominance (its share of the crypto market cap) rose to 70% in late 2024, while Ethereum’s dipped to 10%.
- XRP’s dominance hovers around 1%, constrained by its legal risks and limited utility beyond payments.

3. Technological Upgrades: Bitcoin’s Lightning Network vs. Ethereum’s Scalability Struggles

Bitcoin’s Lightning Network has quietly revolutionized its utility. By enabling near-instant, low-fee transactions (settling in 3–5 seconds), it addresses a core pain point for mass adoption. This upgrade has attracted businesses seeking a reliable payment rail, with adoption growing steadily.

Ethereum’s Pectra upgrade (May 2025) aims to boost scalability by raising blob throughput and enabling account abstraction. However, its blob capacity constraints (768 KB per block) still lag behind competitors like Solana (5,000+ TPS). Meanwhile, Layer 2 networks like Arbitrum and Base, while improving Ethereum’s throughput, risk siphoning transaction volume from its core blockchain.

XRP’s ledger is inherently fast (1,500 TPS), but its use case—cross-border payments—is already being challenged by CBDCs and traditional systems like SWIFT. With the U.S. abandoning its retail CBDC plans in 2025, XRP’s edge in this niche is narrowing.

Conclusion: Bitcoin’s Case for Outperformance

The data paints a clear picture: Bitcoin is the safest, most institutional-ready cryptocurrency for the next year. Its ETF-driven capital inflows, regulatory certainty, and Lightning Network upgrades create a trifecta of advantages over XRP and Ethereum.

• XRP’s legal battle could devalue it by half if the SEC wins, while its niche use case lacks long-term growth potential.
• Ethereum’s scalability challenges and Layer 2 competition threaten its dominance, despite Pectra’s improvements.
• Bitcoin’s price could hit $123,000 by late 2025, fueled by post-halving demand and ETF momentum.

For investors, Bitcoin’s combination of security, usability, and regulatory resilience makes it the top bet in a crypto landscape still defining its future.