Bitcoin has experienced a remarkable rise of 145% this year, but it’s not the only cryptocurrency enjoying significant gains. Several other leading cryptocurrencies are also achieving triple-digit returns, which presents a compelling question for investors as we approach 2025: Should you remain focused on Bitcoin, or explore other cryptocurrencies that might achieve even greater heights next year?

If you’re considering alternatives to Bitcoin, I currently favor two options: XRP (CRYPTO: XRP), which has surged by 283% this year, and Sui (CRYPTO: SUI), boasting an incredible increase of 497%. Both have significantly outpaced Bitcoin this year, and there’s potential for them to continue this trend in the upcoming year.

1. XRP

Investors are flocking to XRP right now, believing that the pro-crypto stance of the incoming Trump administration could greatly influence its trajectory in 2025. A Trump presidency may help eliminate the regulatory issues that have clouded XRP for nearly four years.

Back in December 2020, the Securities and Exchange Commission (SEC) initiated a lawsuit against Ripple Labs, the entity behind the XRP token, claiming that XRP is a security rather than a cryptocurrency. This lawsuit hindered Ripple’s operations in the U.S. and left XRP in uncertainty.

XRP’s price was approximately $0.50 around the time of the presidential elections in November, but it has since skyrocketed to about $2.50. Trump has appointed a pro-crypto official to replace SEC chair Gary Gensler, and there is growing optimism that the SEC will ultimately withdraw its case against XRP, potentially unlocking further price growth.

The SEC’s appeal on this case is scheduled for January 15, just days before the presidential inauguration and the arrival of new SEC chair Paul Atkins. If XRP can navigate past this point, its future looks bright.

Moreover, increased regulatory clarity could drive XRP’s price higher in 2025. Additionally, Ripple plans to launch a new stablecoin to enhance the XRP blockchain ecosystem, making it more appealing for mainstream financial institutions. Successful implementation of this stablecoin could further increase demand for XRP.

There’s also an increasing possibility for a spot ETF related to XRP next year, with four investment firms having already submitted applications to the SEC. Historically, the SEC would have dismissed these applications amid ongoing regulatory uncertainty, but a Trump administration might be more open to approving them.

2. Sui

Sui has outperformed Bitcoin in 2024 for valid reasons. It is likely the fastest-growing Layer 1 blockchain globally, showing incredible development since its launch in May 2023. Its market cap is nearing $14 billion, leading many to compare it to “the next Ethereum (CRYPTO: ETH)” and potentially a rival to “Solana (CRYPTO: SOL).”

It’s important to note that investing in Sui involves a longer-term perspective compared to XRP. Sui won’t disrupt Solana or Ethereum in the near term, but its key metrics are rapidly improving. For instance, Sui recently reached an all-time high of $1.8 billion in total value locked (TVL), a crucial indicator of its adoption, especially in the decentralized finance (DeFi) sector.

A possible catalyst for Sui’s surge in value in 2025 could be the launch of a new Web3 handheld gaming device, the SuiPlay0X1. A success here would lead to mainstream acceptance, and if gamers embrace the $599 device now open for preorder online, it might establish Sui as a frontrunner in the blockchain gaming landscape.

Why not just invest in Bitcoin?

Both XRP and Sui are considered speculative investments. XRP remains under regulatory scrutiny, while Sui is not as secure as Ethereum, which has a market cap approximately 35 times larger and a more established history.

So, is investing in Bitcoin a better option? After all, Bitcoin remains the standard cryptocurrency for both individual and institutional investors, and many analysts predict it could reach $200,000 in 2025.

Perhaps a balanced approach would be wise, making Bitcoin the foundation of your cryptocurrency investments while allocating some funds to XRP or Sui to potentially enhance overall returns. This strategy could help alleviate some risks related to speculative investments while keeping the potential for remarkable gains open for 2025.

Dominic Basulto holds positions in Bitcoin, Ethereum, SUI, and Solana. The Motley Fool also holds positions in and endorses Bitcoin, Ethereum, SUI, Solana, and XRP, following a disclosure policy.

The Motley Fool is a YSL News partner, providing financial news, insights, and analysis to help individuals take control of their financial futures. Its content is produced independently.

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