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Ripple: 2 Cryptocurrencies That Could Outperform XRP in 2022

·4 min read
Diagonal chain made of zeros and ones. Cryptocurrency and mining.
Diagonal chain made of zeros and ones. Cryptocurrency and mining.

Written by Daniel Da Costa at The Motley Fool Canada

One of the most popular cryptocurrencies among investors is XRP (CRYPTO:XRP), which runs on the Ripple Network. Even though it’s still in the midst of a lawsuit, XRP remains in the top 10 cryptocurrencies by market value, with a total market cap of roughly US$35 billion.

And although Ripple offers investors a tonne of opportunity, because it’s already so large and still faces some significant headwinds in the short run, there are smaller, up-and-coming cryptocurrencies that offer more potential.

So, if you’re looking to find some of the best cryptocurrency projects to invest in, here are two that could outperform XRP in 2022.

Tezos could outperform XRP for years

Although XRP is a cryptocurrency created by Ripple to solve issues with payments, there are several different types of coins and tokens that offer better long-term potential.

One of the biggest opportunities in cryptocurrencies today, far bigger than the potential of coins made just for payments, are blockchains with smart contract functionality.

And today, there are several to choose from, but one of the most promising is Tezos (CRYPTO:XTZ). Tezos is one of many up-and-coming smart contract compatible blockchain networks. What gives it so much potential, though, is that it can upgrade its technology autonomously.

This is a major advantage, because it can help avoid the need for hard forks. If enough of the holders of XTZ want to implement a change, it can be voted on and updated on its own.

Word of Tezos’s impressive technology and the ability to consistently evolve is spreading rapidly. Several well-known companies and organizations have already signed up as partners. Even Gap, the popular clothing company, has recently launched NFTs on Tezos.

So, if you’re looking for a cryptocurrency that can outperform XRP, regardless of how the lawsuit with Ripple goes, Tezos is one of the prime candidates.

Polygon looks like a better investment even if Ripple wins the lawsuit

Another excellent cryptocurrency to buy and hold that should outperform XRP for some time is Polygon (CRYPTO:MATIC). Polygon is another smart contract-compatible blockchain network, much like Tezos.

And although it can’t necessarily be upgraded automatically, what it does have going for it is that it’s compatible with Ethereum, which has allowed it to gain a tonne of popularity quickly over the last year.

Polygon was actually built to be a layer-2 scaling solution for Ethereum. So, while Ethereum awaits its upgrades and deals with a highly congested network, Matic has a tonne of potential to rally.

Many of the dApps and other DeFi projects that run on Ethereum can now be used on Polygon. Furthermore, because it often costs less than a cent to send Matic, it’s also a possibility that it could be used for tipping and payments — another reason it should outperform Ripple.

If you’re looking to buy a high-quality cryptocurrency that you can own for years, in my view, Polygon offers far more opportunity for growth than XRP.

Bottom line

If Ripple wins the lawsuit brought on by the SEC, XRP should certainly soar. However, even if that’s the case, these high-potential cryptocurrencies could still outperform XRP due to all the incredible potential they have.

Plus, Ripple could always lose the lawsuit, which still makes it a risky investment today. Therefore, I believe these two cryptocurrencies are much better investments for the long haul.

The post Ripple: 2 Cryptocurrencies That Could Outperform XRP in 2022 appeared first on The Motley Fool Canada.

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Fool contributor Daniel Da Costa owns Ethereum and Polygon. The Motley Fool owns and recommends Ethereum and Tezos.

2022

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