Key insights
- The article suggests Ethereum is a better cryptocurrency investment than XRP due to potential regulatory clarity from the Digital Asset Market Clarity Act and renewed buying interest from major treasury companies like Bitmine Immersion Technologies. The Clarity Act is expected to particularly benefit Ethereum's dominance in stablecoins and DeFi, potentially driving its price higher. This positive outlook on a major digital asset could have a modest bullish influence on related financial markets.
It's understandable why many investors are waiting for XRP (XRP 0.43%) to soar in value. It's down 65% from its 2025 high and currently trades close to $1. It seems to be a coiled spring, just waiting to explode.
But there's a better cryptocurrency to be accumulating right now. Just like XRP, it's down more than 60% from its 2025 high. But it dwarfs XRP in size, and is typically one of the first cryptocurrencies to move higher during any crypto bull market cycle. Yes, I'm talking about Ethereum (ETH +0.44%).
There are two good reasons why you should consider buying Ethereum right now. Both of these could send the world's second-largest cryptocurrency much higher.
The first is the imminent passage of the Digital Asset Market Clarity Act ("Clarity Act"). Just like its name suggests, the proposed legislation aims to provide clear rules of the road for how banks, financial institutions, and fintech firms use crypto. A particular focus is stablecoins, an area where Ethereum reigns as the industry giant, so I'm expecting a big boost here.
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While XRP is also certain to get a boost from the passage of the Clarity Act, the impact will be felt much more broadly at Ethereum, which is a much bigger player than XRP in decentralized finance (DeFi).
The second major catalyst is renewed buying from the Ethereum treasury companies. The name to watch here is Bitmine Immersion Technologies, which has emerged as the biggest Ethereum treasury company on the planet, with its crypto hoard valued close to $10.5 billion. That's roughly equivalent to 4.5% of all Ethereum in circulation.
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As long as the biggest Ethereum treasury companies continue to ramp up their purchases, then the price of Ethereum should trend upwards. By way of comparison, there is only a smattering of XRP treasury companies, and none that are big enough to move the needle on XRP's price.
If history is any guide, the next crypto bull market cycle will be led by Bitcoin, which still accounts for a staggering 60% of the total crypto market cap. Next to pop will be Ethereum, which tends to be highly correlated with Bitcoin. After Ethereum, the high-market-cap altcoins. This group includes XRP, which ranks fifth among all cryptocurrencies by market cap.
I'm not saying that history will repeat itself, and that the same sequence will result. At the same time, I'm highly convinced that Ethereum will roar back to life as soon as Bitcoin regains its footing.
For now, I recommend forgetting about XRP to focus on Ethereum.