Better Choice for Crypto Investment: XRP or TRON

With the Trump administration providing strong support for the crypto sector, investors and established businesses are now less burdened by regulatory uncertainties.

This brings us to the key question: which digital currencies offer the most attractive balance of risk and reward? XRP ( XRP 2.32%), currently the third-largest cryptocurrency globally, has surged by more than 345% over the past year. Meanwhile, TRON ( TRON -2.22%), though less well-known, has nearly doubled in value during the same period and now ranks as the tenth-largest cryptocurrency, boasting a market capitalization just below $30 billion. Which one stands out as the smarter investment?

TRON: A faster alternative to Ethereum?

When comparing TRON to other cryptocurrencies, Ethereum—the second-largest crypto by market cap—is the most obvious parallel. TRON originally launched as an ERC-20 token, meaning it was created on Ethereum’s blockchain and adhered to its standards.

However, in 2018, TRON’s developers transitioned the project to its own blockchain, which has since become a platform for building decentralized applications (dApps) with smart contract capabilities.

Like Ethereum, TRON operates on a proof-of-stake (PoS) system, where participants lock up their tokens for a chance to validate transactions and add new blocks. The more tokens staked, the higher the likelihood of being selected and earning rewards. TRON, however, uses a delegated PoS model.

Delegated PoS addresses a common criticism of traditional PoS systems: the tendency toward centralization, as those with more tokens gain more influence. This can undermine the decentralized nature that many crypto enthusiasts value.

By allowing token holders to elect delegates who validate transactions, delegated PoS aims to keep the network more decentralized. This approach also speeds up transaction validation, reduces energy consumption, and enhances scalability.

TRON’s network is capable of handling up to 2,000 transactions per second (TPS). While Ethereum aspires to reach 100,000 TPS in the future, it is still far from achieving this benchmark.

TRON is primarily used for dApps and currently features very low transaction fees. According to CoinLaw, a crypto news outlet, there are now more than 1,900 dApps running on TRON, and the token consistently ranks among the top three for daily active users, alongside Ethereum.

XRP: A strong contender in global payments

With the conclusion of a lengthy legal dispute between Ripple—the company behind XRP—and the U.S. Securities and Exchange Commission, XRP’s price rebounded sharply. For further gains, however, the token will likely need to see more adoption in international payments, an area where Ripple CEO Brad Garlinghouse sees significant potential to drive demand.

XRP uses a consensus protocol that differs from both PoS and the original proof-of-work models. It relies on a trusted set of nodes that are assumed not to collude, enabling transaction processing. While some argue this makes the network less decentralized, the advantages include faster transaction speeds—up to 1,500 TPS—and the ability to more easily correct errors, which could appeal to business clients.

Ripple has leveraged XRP’s rapid transaction capabilities to facilitate cross-border payments for traditional financial institutions. With Ripple’s payment solutions, companies can transfer funds using stablecoins or local currencies to recipients worldwide, without the need to hold digital assets, and settle these transactions instantly at any time. XRP also provides on-demand liquidity, eliminating the need for banks to pre-fund accounts and giving them greater flexibility in managing their capital.

Garlinghouse believes that this network could gain traction and potentially disrupt the conventional SWIFT system (Society for Worldwide Interbank Financial Telecommunications) that banks currently use for international transfers.

Which is the better investment?

Both XRP and TRON have strong potential thanks to their practical applications, which is, in my opinion, the most important factor for evaluating cryptocurrencies as long-term investments. However, both face competition from other platforms that specialize in dApps or offer high transaction throughput, which could also become major players in the global payments space.

Although I still consider both tokens to be speculative at this stage, my preference leans toward XRP, mainly due to its association with Ripple, which is making significant strides in connecting traditional finance with the crypto world.