Cardano (ADA) vs Ripple (XRP): Comprehensive Comparison Before Investment

Bittime - Cardano (ADA) and Ripple (XRP) are two big names that are attracting the attention of crypto investors. Well, this article will discuss Cardano vs XRP. Which is better for investment? Check out the full review here, OK!

Although the two are often compared, their goals, designs, and ecosystems are very different. Cardano is known as a research-based blockchain that prioritizes security and decentralization, while Ripple is designed to speed up cross-border financial transactions at low costs.

Before deciding to invest in either of the two, it is important to understand the characteristics of each. This article will discuss in depth the differences between Cardano (ADA) and Ripple (XRP) to increase your knowledge before investing.

What is Cardano (ADA)?

Cardano is a blockchain platform developed to support smart contracts and decentralized applications (dApps). 

This blockchain has a research-based approach and was developed by academics and technology engineers to ensure its scalability, security and interoperability.

Cardano uses a consensus algorithm Proof-of-Stake (PoS) which is called Ouroboros. The consensus is that it is more energy efficient compared to Proof-of-Work (PoW) which uses Bitcoin. 

The native token of this ecosystem is THERE IS. These crypto tokens are used for staking, transactions, and participation in network governance.

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What is Ripple (XRP)?

Ripple is a digital payment protocol designed to enable fast and cheap cross-border financial transactions. The original token, XRP, often considered a bridge between fiat currencies and other crypto assets. 

Ripple has a unique approach in the crypto industry as it works closely with banks and financial institutions to increase the efficiency of the global payment system.

Unlike Cardano, Ripple does not use a PoW or PoS system, but rather Ripple Protocol Consensus Algorithm (RPCA), which allows transactions to be processed in seconds with low fees. 

However, this approach is often criticized due to its higher degree of centralization compared to traditional blockchains.

Cardano (ADA) Vs Ripple (XRP) Comparison

Source: Medium

The following is a discussion about Cardano vs XRP from history, vision, network, to the launch of the coin. Follow the explanation below, OK:

1. History

Cardano was founded on September 27, 2017 by Charles Hoskinson And Jeremy Wood. Hoskinson previously co-founded Ethereum before founding Cardano with a more research-based approach.

Whereas, Ripple launched in 2012 by the name OpenCoin, which then changed to Ripple Labs in 2013 and eventually became known as Ripple. Ripple was founded by Chris Larsen and Jed McCaleb.

2. Everyone

Cardano aims to create a more secure, scalable and sustainable blockchain ecosystem with an academic-based approach. 

Whereas, Ripple focuses on improving the efficiency of global payment systems with fast transactions and low fees.

3. Coin Launch

At the launch of Cardano, there were approx 31 billion ADA tokens made, with 26 billion ADA sold to investors. While Ripple exists 100 billion XRP created, with 45 billion XRP distributed to users through various programs.

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4. Network Design

Cardano use Proof-of-Stake (PoS) Ouroboros, which is more environmentally friendly than Proof-of-Work (PoW). 

Besides that, Ripple use Ripple Protocol Consensus Algorithm (RPCA), which allows for faster transactions but is considered more centralized.

5. Monetary Policy

Cardano have maximum supply 45 billion ADA. Ripple own more XRP tokens. This project recorded a steady supply 100 billion XRP, with most of it controlled by Ripple Labs.

Cardano (ADA) Vs Ripple (XRP) Price Movement

When this article was written, dIn the last 24 hours both recorded slight increases, namely as follows:

• Cardano (ADA) experiencing price changes +1,7%, for approx $0.6723 (approximately Rp. 11,020).

• Ripple (XRP) has increased +1,8%, for approx $2,2613 (approximately Rp. 37,080).

In terms of market capitalization:

• Cardano (ADA) currently has a market capitalization of approx $27.4 billion (around IDR 449.6 trillion).

• Ripple (XRP) has a market capitalization of approx $149.4 billion (around IDR 2,451.6 trillion).

Cardano (ADA) Vs Ripple (XRP): Which is Suitable for Investment?

Source: Coinpedia

If you are looking for a blockchain project with a research-based and decentralized approach, Cardano could be a better choice. If If you want to invest in crypto assets that are already used by financial institutions with high transaction speeds, Ripple is a more suitable choice.

However, the final decision still depends on each investor's strategy and risk tolerance.

Read also: Crypto Trading Mistakes to Avoid

Conclusion

Good Cardano (ADA) and Ripple (XRP) each has its own advantages and disadvantages. Cardano focuses more on security, decentralization and smart contracts, while Ripple prioritizes transaction efficiency and cooperation with financial institutions. 

Before investing, make sure you understand the characteristics of each asset and consider the existing risk factors. 

That is the discussion about Cardano vs XRP that you should know. Hopefully this article can increase your knowledge about the two crypto assets, yes!

FAQ

1. Are ADA and XRP suitable for long-term investment? 

Yes, both have long-term prospects, but it depends on your investment goals and risk tolerance.

2. Which is faster, Cardano vs XRP? 

Ripple is faster in processing transactions than Cardano.

3. Is ADA safer than XRP? 

Cardano is considered safer due to its research-based and decentralized approach.

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Reference 

Cryptogeek, Cardano (ADA) vs Ripple (XRP) Comparison | Which One Is the Better Investment?, accessed March 11, 2025.

Kraken, Cardano vs. Ripple, accessed March 11, 2025.

Author: Y