While Bitcoin has surged by 145% this year, it’s not the only cryptocurrency making waves. Other leading digital currencies are also posting impressive triple-digit gains, presenting a compelling conundrum for investors as 2025 approaches. The question on many minds is whether to continue investing in Bitcoin or to explore other cryptocurrencies that might offer even greater returns in the coming year.
For those considering alternatives to Bitcoin, two cryptocurrencies currently catch my eye: XRP (CRYPTO: XRP), which has increased by 283% this year, and Sui (CRYPTO: SUI), which has risen an astonishing 497%. Both of these have significantly outperformed Bitcoin this year, and there are strong indicators that they may continue to do so in the next year.
1. XRP
Right now, investors are flocking to XRP, buoyed by the anticipation that the pro-cryptocurrency stance of the incoming Trump administration will greatly benefit it in 2025. This optimism stems from the belief that a Trump presidency could finally lift the regulatory uncertainty that has clouded XRP for almost four years.
In December 2020, Ripple Labs, which created the XRP token, was hit with a lawsuit by the Securities and Exchange Commission (SEC), which claimed XRP was a security rather than a cryptocurrency. This legal challenge significantly disrupted Ripple’s operations in the U.S. and left XRP in a precarious position.
At the time of the presidential election in November, XRP’s trading price was merely $0.50. However, it has since soared to about $2.50. Donald Trump has appointed a new pro-cryptocurrency leader to replace SEC head Gary Gensler, leading many to believe that the SEC will eventually dismiss its lawsuit against XRP, potentially leading to further price increases.
The appeal date for the SEC in this case is set for January 15, just days before the presidential inauguration and the arrival of the new SEC head, Paul Atkins. It seems likely that XRP could be in the clear shortly after this date.
Another factor that could drive up XRP’s value in 2025 is the planned launch of a new stablecoin by Ripple. This initiative aims to broaden the XRP blockchain ecosystem’s reach and effectiveness. If successful, the stablecoin launch could simplify the incorporation of the XRP blockchain by mainstream financial institutions, which in turn could boost XRP’s price.
Additionally, the chances of an XRP spot ETF being launched next year are increasing. Four investment firms have already submitted applications for spot XRP ETFs to the SEC. Given the previous regulatory uncertainties surrounding Ripple, such applications would have been unthinkable. However, under a Trump administration, the SEC might be more open to considering these applications.
2. Sui
Sui has outperformed Bitcoin significantly in 2024, and rightly so. It’s one of the fastest-growing Layer 1 blockchain networks globally, achieving a market cap of nearly $14 billion since its official launch in May 2023. It’s now being hailed as “the next Ethereum (CRYPTO: ETH)” and a possible threat to “Solana (CRYPTO: SOL).”
While Sui is more of a long-term investment than XRP, its fundamentals are strengthening rapidly. For instance, the total value locked (TVL) in Sui recently reached a record $1.8 billion, a testament to its fast adoption, particularly in the decentralized finance (DeFi) space where TVL is a crucial measure of a blockchain’s strength.
In 2025, one potential catalyst for Sui’s value to skyrocket is the launch of a new Web3 handheld gaming device, the SuiPlay0X1. Priced at $599 and available for preorder, this device could significantly boost mainstream adoption. If gamers widely accept the SuiPlay0X1, it could establish Sui as a powerhouse in blockchain gaming and attract more users to its platform.
Why not just invest in Bitcoin?
Both XRP and Sui represent high-risk investment options. XRP continues to face substantial regulatory challenges, and Sui, despite its potential, is not as secure as Ethereum, which has a market cap nearly 35 times larger and a much more established history.
So, should you solely invest in Bitcoin? It remains the gold standard among cryptocurrencies for both individual and institutional investors, with predictions suggesting it could reach $200,000 in 2025.
The most prudent strategy might be to make Bitcoin the foundation of your crypto portfolio while allocating smaller amounts to XRP or Sui as high-growth but higher-risk options. This approach balances the risk and keeps the potential for exceptional gains open for 2025.
Dominic Basulto holds positions in Bitcoin, Ethereum, SUI, and Solana. The Motley Fool owns and recommends Bitcoin, Ethereum, SUI, Solana, and XRP. The Motley Fool has a disclosure policy.
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Passionate about analyzing economic markets, Alice M. Carter joined THE NORTHERN FORUM with a mission: to make financial concepts accessible to everyone. With over 10 years of experience in economic journalism, she specializes in global economic trends and US financial policies. She firmly believes that a better understanding of the economy is the key to a more informed future.