Key Points
XRP has a lot of new features and new users.
Shiba Inu doesn’t.
The gap is only going to get wider over time.
10 stocks we like better than XRP ›
Two kinds of cryptocurrencies tend to dominate headlines. One group, meme coins, exist mainly as jokes that are funny for as long as their price continues to rise. The other group, which goes by many different names, runs quietly and seeks to find a home as part of the plumbing layer of international finance, powering key financial systems while nobody is looking.
Enter XRP (CRYPTO: XRP) and Shiba Inu (CRYPTO: SHIB). Both have a habit of rallying hard, yet their next three months and beyond will hinge on very different engines of value creation — or lack thereof, in Shiba Inu’s case. Here are three reasons XRP’s chances look significantly stronger in both the near term and the long term.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More »
1. Ongoing utility drives baseline buying
One big advantage that XRP has is that it’s issued by a company called Ripple, which is responsible for the development of the XRP Ledger (XRPL) and thus the chain’s usage and its ecosystem.
Every time Ripple’s on-demand-liquidity (ODL) customers bridge currencies, the system automatically sources XRP, holds it for seconds, and releases the target fiat currency on the other side. Ripple’s latest markets report shows institutions pulled in $37.7 million of net XRP inflows to investments related to the coin in Q1 alone.
In other words, Ripple is bringing in real value as a result of XRP. And it’s just getting started. The ledger recently rolled out five fiat-backed stablecoins and live trading for tokenized U.S. Treasuries via Ondo Finance’s platform.
The reason that’s bullish is that investors who want 24/7 Treasury bill exposure on the blockchain must hold either Ripple’s main stablecoin or XRP to settle their transactions, creating continuous, purpose-driven demand.
Image source: Getty Images.
Shiba Inu, in contrast, has no utility at all, and generates zero revenue. Its only supply control is token burning funded mostly by community enthusiasm, which is fickle. Burns reduce float, but unless users must own the token to accomplish a task, burns simply shrink a pool of coins that might never have mattered.
2. Institutions don’t (and probably won’t ever) buy many meme coins
Ripple’s pitch for XRP lands with the very crowd that meme tokens will never reach: cautious banks and asset managers.
Numerous institutional investors and financial industry players are onboarding their financial plumbing to the ledger. Similarly, pending U.S. XRP exchange-traded fund (ETF) applications could hand those same players a turnkey wrapper for onboarding capital they already manage. And, overall, the regulatory environment is de-risking using cryptocurrencies like XRP for real financial work.
Meanwhile, Shiba Inu is not exposed to the same set of institutional tailwinds. In fact, large-holder transaction volume collapsed 74% in late May as whales stepped away, draining 80% of its liquidity in a month.
Passion alone can spark short-lived spikes, but when institutional allocators look for yield-bearing, compliance-ready rails, they have a good chance of landing on XRP, and zero chances of landing on a dog-themed coin built for memes.
3. Tech development
The final reason that XRP will likely outperform Shiba Inu is that it’s constantly getting technology upgrades that make it more appealing to the users it’s courting.
Two weeks ago, XRPL shipped its latest version, introducing permissioned decentralized exchanges (DEXs), token escrow upgrades, and batch transactions, all of which are table-stakes features for regulated finance to dabble with the chain. Ripple also funds grants, runs global hackathons, and just lit up an Ethereum virtual machine (EVM) sidechain so Ethereum developers can port their apps without leaving the ecosystem.
In contrast, the Shiba Inu L2 platform, Shibarium, still leans on Ethereum for gas fees and bridging, creating friction exactly where low-fee usability counts most. Planned privacy upgrades remain delayed, and the “metaverse” tie-ins that once buoyed hype have no firm ship date — nor is it likely they have real utility, considering the graveyard of other abandoned metaverse projects in the tech sector.
Put bluntly, XRP’s ledger keeps getting more and more feature-complete for bankers, while the Shibarium is still patching the roof between meme rallies. There’s no contest here.
Why that matters for price action over the next 90 days is simple.
New catalysts attract fresh capital, and fresh capital sets higher floors.
Assuming markets stay sideways, the coin with active integrations, rising institutional inflows, and a clear development roadmap should outpace the token leaning on community conviction alone. That coin is XRP.
Investors chasing upside here should avoid meme exposure and let real utility do the heavy lifting.
Should you invest $1,000 in XRP right now?
Before you buy stock in XRP, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and XRP wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004… if you invested $1,000 at the time of our recommendation, you’d have $680,559!* Or when Nvidia made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation, you’d have $1,005,670!*
Now, it’s worth noting Stock Advisor’s total average return is 1,053% — a market-crushing outperformance compared to 180% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.
See the 10 stocks »
*Stock Advisor returns as of July 15, 2025
Alex Carchidi has positions in Ethereum. The Motley Fool has positions in and recommends Ethereum and XRP. The Motley Fool has a disclosure policy.
