 ▲ Ethereum (ETH), XRP (XRP) / ChatGPT-generated image © |
An analysis suggests that for investors seeking a cryptocurrency to invest $3,000 in over the next five years, Ethereum (ETH), which dominates the real-world asset (RWA) tokenization market with an overwhelming ecosystem, would be a far more advantageous choice than XRP (XRP, Ripple).
According to investment publication The Motley Fool on February 14 (local time), the strongest growth driver for Ethereum over the next five years is expected to be the tokenization of real-world assets. Currently, the total value of tokenized assets tradable in the broader cryptocurrency market stands at $24.1 billion, with $14.6 billion concentrated on Ethereum, solidifying its role as the market’s largest hub. Notably, over the past 30 days alone, the total value of real-world assets deposited on Ethereum has surged 16%, signaling a rapid influx of asset issuers and managers.
As substantial capital continues to flow in, the Ethereum network has firmly established itself as a new source of financial products and liquidity. Boston Consulting Group (BCG) estimates that the value of tokenized assets on blockchains could reach $16 trillion by 2030, with Ethereum expected to capture a significant portion of that market. Following the successful completion of two major upgrades in 2025, additional expansions are planned for 2026, which are likely to further enhance network efficiency.
In contrast, XRP’s investment success largely depends on how effectively its issuer, Ripple, can market to financial institutions and further develop the utility of the XRP Ledger (XRPL). In June 2025, Ripple launched the XRPL Ethereum Virtual Machine (EVM) sidechain, aiming to maintain low transaction costs while enhancing programming flexibility to attract Ethereum developers.
However, it appears unlikely that XRP will be able to absorb Ethereum’s vast pools of capital and talent. The total value of tokenized assets on the XRP network currently stands at just $304 million, highlighting a significant gap compared to Ethereum. Analysts believe the likelihood of narrowing this gap within the next three to five years is slim. Ultimately, while XRP may also be a solid investment, Ethereum is considered the more compelling choice for a five-year holding of $3,000 due to XRP’s relatively limited upside potential.
*Disclaimer: This article is for investment reference purposes only, and we are not responsible for any investment losses resulting from its use. The information provided should be interpreted for informational purposes only.*