XRP on the Ropes? Why This Red-Hot Altcoin Is Stealing the Spotlight in 2025

The crypto markets never sleep—and neither do the opportunities. While XRP struggles with regulatory hangovers, a new contender is making traders forget their Ripple-induced headaches.

The dark horse you're ignoring (at your portfolio's peril)

Forget 'safe' plays. The real action is happening where the institutional money hasn't yet ruined the party—small-cap alts with actual utility. One token's 300% quarterly run isn't just hype; it's solving real DeFi pain points that Ethereum still can't touch.

When the herd zigzags, smart money loads up

Wall Street's still trying to understand stablecoins while retail's already moving to the next paradigm. The winner here won't be the 'regulated' token—it'll be the one that bypasses gatekeepers entirely. (Cue the SEC's collective migraine.)

Bottom line? In crypto, you either front-run the narrative or become exit liquidity for those who did.

The arrival of Ethereum Treasury Companies

The one catalyst that set off Ethereum's summer rally was the sudden appearance of high-profile Ethereum Treasury Companies. These companies, inspired by the success of Bitcoin Treasury Companies, are designed to do just one thing: Buy as much Ethereum as they possibly can, as fast as they can.

The one name that really stands out here is(BMNR 24.59%). Before June 2025, it was a sleepy little Bitcoin mining company. But then it hired Fundstrat co-founder Tom Lee as its chairman, and things have really taken off. The company is in the process of reinventing itself as the world's top Ethereum Treasury Company.

Given Tom Lee's public profile, he's the sort of person who often pops up on CNBC. Increasingly, he's talking up the merits of investing in Ethereum. In doing so, he's playing the same evangelist role that Michael Saylor of(NASDAQ: MSTR) does for Bitcoin. So, given all this new buzz, other Ethereum Treasury Companies are also launching.

Image source: Getty Images.

It should be pointed out that new XRP Treasury Companies have also formed this summer. But there is much less enthusiasm for them than for the new Ethereum Treasury Companies. That could change over the next 12 months, but for now, Ethereum has the clear edge.

The stablecoin investment thesis

There's another factor in Ethereum's favor: The rise to prominence of stablecoins. Everyone, it seems, has been talking about stablecoins this summer, from retailers to fintech companies to Silicon Valley giants. The U.S. Treasury Department has also pushed the stablecoin agenda.

And guess what? The top blockchain for stablecoins right now is Ethereum. It accounts for a reported 49% of all stablecoin activity right now. The only other blockchain that comes close is(CRYPTO: TRX).

In contrast, XRP is almost nowhere to be found in the ongoing debate over stablecoins. That's despite the fact that Ripple, the company behind the XRP token, launched a stablecoin of its own in December 2024 with the stated goal of boosting demand for XRP.

As might be expected, a very strong stablecoin investment thesis is starting to FORM around Ethereum. The growing perception is that it is going to become a primary beneficiary of stablecoin adoption. As more people begin using stablecoins for activities like making online transactions, it should lead to new activity flourishing on the Ethereum blockchain, as well as a much healthier Ethereum ecosystem.

Renewed activity in spot Ethereum ETFs

Ethereum and bitcoin are currently the only two cryptocurrencies with spot crypto ETFs. That is a key selling point with institutional investors, who are using these ETFs as a way to get exposure to the crypto market.

Admittedly, earlier in the year, there was a lot of talk over the slowing pace of money flows into Ethereum ETFs. In some months, there were actually net outflows. That makes sense -- Ethereum's performance earlier in the year was dreadful, and investors were quite rightly taking their money out of spot Ethereum ETFs and moving it elsewhere.

But here's the thing: Ethereum's summer rally has resulted in a new flood of money coming into the spot Ethereum ETFs. That's helping to push Ethereum higher as well.

That being said, new spot XRP ETFs could be coming any moment now. The SEC is currently reviewing a handful of spot XRP ETF applications, and has until mid-October to RENDER a judgment on them. If the SEC approves them, that might help to close the "ETF gap" between XRP and Ethereum. But for now, Ethereum has the edge.

Ethereum is hardly a risk-free investment

Just remember: Even though there are several factors that appear to make Ethereum a more attractive investment than XRP right now, it's hardly a risk-free investment. There's still enormous volatility in crypto, and Ethereum is no exception.

Helping to mitigate this risk is Ethereum's long track record of performance that dates back to 2015. Investors now have a decade's worth of data to digest. If history is any guide, Ethereum will once again become a top market performer. Thus, while I can understand the allure of investing in an inexpensive $3 crypto like XRP, I'd rather put my money behind an expensive $3,600 crypto like Ethereum.