ETH’s 38.84% monthly gain is insignificant compared to XRP’s 180.84% surge. Until recently, Ethereum seemed to have no competition over Solana in terms of developer recruitment, but now the XRP Ledger is gaining a lot of attention.
Both platforms allow for the development of custom applications using smart contracts, facilitating fast cross-border transactions. So why did Ethereum lose momentum to the XRP Ledger and could XRP outperform ETH by 2025?
Meanwhile, Layer 2 solution PlutoChain (PLUTO) may enter the nascent Bitcoin dApp market. This technology could drive the adoption of BTC beyond being a mere store of value and rival the likes of XRP in its scalability.
XRP vs ETH: Which has greater potential?
Ethereum has the largest dApp ecosystem of all layer 1 networks. However, frequent network congestion, high fees and transaction delays prompt users to turn to alternative solutions.
Among such alternatives is Ripple, which recently deployed native smart contracts on the Ethereum-compatible XRP Ledger and XRPL EVM sidechains. Ripple’s latest update also introduces enhanced support for multi-purpose tokens (MPTs), credentials, NFTs and AMM.
Last but not least, Ripple is exploring partnerships with other prominent projects, including layer 1 blockchain network Cardano.
These updates make the XRP Ledger more attractive to developers and extend its applications beyond cross-border remittances.
ETH is currently trading at $3,534, 27% below its 2021 ATH record of $4,891.70. XRP has consolidated around $1.45 after failing to break out of the $1.61 resistance zone last week.
Technical indicators suggest that ETH could rise further in the short term and reach $4,215 by the end of the year. XRP also has a strong bullish trend and could reach $3 in the near future.
The question is which platform will attract more community interest in the long run. Although Ethereum faces its fair share of challenges, the benefits of its highly decentralized nature and flexible development tools are undeniable. As it turns out, both projects are worth keeping an eye on in 2025.
PlutoChain expands Bitcoin applications
While Ethereum and XRP compete for supremacy in the dApp space, Bitcoin's functionality is limited to being a store of value. PlutoChain has the potential to change this through smart contract and EVM compatibility.
The total value locked (TVL) of the BTCFi ecosystem is only 0.13% of the BTC market capitalization. In contrast, Ethereum DeFi app TVL accounts for 10% of ETH’s market capitalization, indicating immense growth opportunities for new BTCFi projects.
PlutoChain's Layer 2 solution allows developers to build native applications on Bitcoin and port existing applications such as DeFi protocols, NFT marketplaces, and P2E games from Ethereum. This could unleash Bitcoin's full $1.9 trillion economic potential.
At a basic level, PlutoChain has the potential to make Bitcoin transactions faster and cheaper. Essentially, this project could serve as a secondary layer that handles the majority of transactions, allowing the main Bitcoin mainnet to focus on its core functionality.
To ensure the security of users' funds and personal data, PlutoChain underwent a rigorous security audit conducted by SolidProof. The audit confirmed that there were no significant vulnerabilities or bugs in the code.
Additionally, PlutoChain’s community-centric governance model empowers its owners to influence the trajectory of their projects. This ensures that the project's development matches the user's vision.
last word
Although Ethereum and Solana dominate the dApp space, the blockchain industry never stops evolving. Today, XRP offers a solid alternative with fast and low-cost cross-border payments and native smart contracts.
However, in the future, we may see an increase in Bitcoin dApp development thanks to layer 2 solutions like PlutoChain.
To learn more about PlutoChain and its unique features, please visit the links below.
Official website: https://plutochain.io
X/Twitter page: https://x.com/plutochain/
Telegram channel: https://t.me/PlutoChainpayments/
This article is not financial advice. Past results are not indicative of future returns and virtual currency markets are inherently unpredictable. Readers should conduct their own thorough research before purchasing any crypto coins or tokens. These forward-looking statements are subject to risks and are subject to change.
This is a sponsored article. The opinions expressed are solely those of the sponsor and readers should conduct their own due diligence before acting on the information presented in this article.
