Key takeaways
- Ethereum’s network is fully decentralized with thousands of independent validators, but XRP Ledger only operates with 150 Ripple-chosen validators, making it more centralized.
- Both Ether (ETH) and XRP (XRP) are top cryptocurrencies, with ETH functioning as a digital currency and supporting smart contracts, while XRP is focused on fast, low-cost payments.
- Adoption patterns differ significantly, with Web3 and DeFi applications driving Ethereum’s user base, while XRP Ledger’s growth is tied to institutional adoption and cross-border payments.
- Both XRP and ETH have $100-billion+ market caps, but coin prices differ massively due to the tokenomics and supply levels of each asset.
If you’re exploring the world of altcoins outside of Bitcoin (BTC), then digging into Ether (ETH) vs. XRP (XRP) and their blockchains is a great jumping-off point.
ETH and XRP have dominated the top of the crypto markets for years, riding out the worst industry storms while continuing to innovate in the blockchain world.
While they both boast $100-billion+ market capitalizations and are listed on every major exchange, they are very different digital assets and distributed networks. Below is a detailed Ether vs. XRP comparison to help you understand the pros and cons of each asset and ultimately decide which is better.
Ethereum vs. XRP Ledger blockchain differences
Ethereum
Ethereum is the name of the blockchain network that hosts the “ETH” cryptocurrency, though the terms are often used interchangeably — many refer to both the network and the coin as Ethereum.
Unlike XRP Ledger, the Ethereum network isn’t operated or owned by a specific company. It is fully decentralized, supported by thousands of network participants and developers worldwide, with over 8,000 active validator nodes securing the network as of early 2025.
The ETH coin is widely used for payments and transactions, but the blockchain’s functionality extends far beyond that. It facilitates smart contracts, enabling developers to build applications and additional layers on the network, solidifying its position as a cornerstone of Web3 and decentralized finance (DeFi).
Ripple
XRP is one of the oldest cryptocurrencies, having launched in June 2012. Ripple Labs is the organization behind the coin, which is why some users refer to it as “Ripple” rather than the asset’s official name, XRP.
It was originally developed with the aim to be faster, cheaper and more energy-efficient than Bitcoin and other altcoins. Operating on the XRP Ledger blockchain, it now focuses on aiding financial institutions with efficient global payments within Ripple’s ecosystem, a role it continues to expand with the launch of the RLUSD stablecoin in December 2024.
It remains a distributed peer-to-peer network that allows anybody to access XRP to buy, sell, hold and transact through its validator network, with a default Unique Node List of more than 35 nodes out of 135+ total validators, which is more centralized compared to other major blockchains.
Did you know? In 2016, the Ethereum blockchain conducted a hard fork after The DAO hack. It resulted in two blockchains, Ethereum and Ethereum Classic. Both still exist, but the latter struggles to attract the same levels of adoption.
Ethereum vs. XRP Ledger: Consensus mechanism compared
Both Ethereum and XRP Ledger run using blockchain technology, but there are fundamental differences in their design and operation, including the consensus mechanism and governance.
Ethereum
Ethereum switched to a proof-of-stake (PoS) consensus algorithm in 2022 to reduce its energy consumption. Validators who stake at least 32 ETH now make network decisions, including validating transactions and adding new blocks.
This enables the smart contracts to automatically execute on the blockchain when specific conditions are met. Anyone with sufficient capital can stake and participate, reinforcing its decentralized nature, with over 8,000 active validator nodes as of early 2025. The Ethereum Virtual Machine (EVM), embedded in its architecture, enables smart contracts to execute automatically when predefined conditions are met, driving its role in decentralized applications (DApps).
XRP Ledger
XRP Ledger employs a federated consensus mechanism, utilizing a default Unique Node List (UNL) of over 35 validators out of 135+ total validators, with Ripple operating only a few. This smaller, Ripple-selected group results in more centralized control — a frequent critique within the crypto community.
However, this structure prioritizes efficiency, allowing Ripple to process up to 1,500 transactions per second (TPS) with minimal energy use. Through its Ripple Protocol Consensus Algorithm, a transaction is validated once 80% of nodes agree, achieving consensus every three to five seconds.
The blockchain technologies underpinning ETH and XRP contrast sharply in transaction speeds. As of 2025, Ethereum lags behind XRP Ledger with a TPS of 50–60, though recent upgrades and its roadmap aim for a long-term capacity of 100,000 TPS, while XRP Ledger maintains its high-speed advantage for payment-focused use cases.
Ethereum vs. XRP Ledger use cases
Ethereum and XRP Ledger thrive as leading blockchains but are distinguished by their contrasting use cases.
Ethereum
Ethereum revolves around its smart contract capabilities, powering the creation of DApps, which facilitate peer-to-peer interactions and transactions, maturing into complex systems by 2025 across innovative sectors like DeFi and gaming.
For instance, a user might leverage a DeFi DApp for lending or borrowing, with smart contracts autonomously handling loan terms and repayments. Ethereum’s smart contracts also underpin decentralized exchanges (DEXs), enabling peer-to-peer crypto trading, a cornerstone of its dominance in the Web3 ecosystem.
In addition, Ethereum is the hub for non-fungible tokens (NFTs), supporting digital art and collectibles on platforms like OpenSea, and hosts DApps such as games (e.g., Axie Infinity) and social networks. It facilitates tokenization, decentralized autonomous organizations (DAOs) like Sky (previously MakerDAO) and stablecoins while also serving enterprise needs, supply chain tracking, digital identity and crowdfunding. Despite scalability challenges, Ethereum’s ecosystem drives blockchain innovation.
XRP Ledger
XRP Ledger’s primary use case is enabling fast and low-cost international money transfers. Through RippleNet, a global network of banks and payment providers, institutions can settle cross-border transactions in real-time — often within three to five seconds — using XRP as a bridge currency. This reduces the need for pre-funded accounts in multiple currencies and minimizes reliance on slow, expensive intermediary banks, offering a modern alternative to systems like SWIFT.
Ripple also works with central banks to develop and implement central bank digital currencies (CBDCs) on the XRP Ledger (XRPL). The XRP Ledger supports creating and exchanging tokenized assets, such as stablecoins, utility tokens or even real-world assets like real estate or commodities. This opens up use cases in DeFi, allowing developers and institutions to build innovative financial products.
Ripple enables affordable and rapid remittance services, particularly for migrant workers sending money home. Partnerships like the one with Chipper Cash in Africa highlight how Ripple Payments can reduce fees and delays, making it a practical solution for individuals and payment providers alike.
ETH vs. XRP adoption
Given the difference in use cases and market prices for ETH and XRP, it can be tricky to understand the adoption of both these assets.
ETH
ETH has been the number two crypto for several years now. It shows, too, with a market value touching $4,000 in 2024. Its market cap, while volatile, is impressive, too, often reaching more than $400 billion.
It’s certainly had a meteoric rise since its 2016 launch. The reasons for this adoption are widespread. Many speculate that its value will continue to grow in the long term. The advent of Web3, the decentralized internet, is heavily built using the Ethereum smart contract functionality. All of these innovative DApps require ETH along the way to pay gas fees during operations.
XRP
You can be forgiven for thinking that XRP adoption is sluggish in comparison, as its market value has only managed to hit $3 per coin in early 2025. But it still boasts a market cap climbing to nearly $180 billion in January 2025. No doubt, it has fewer users and holders than ETH, with its current holders either speculating on future value or using it for simple transactions. ETH’s adoption is driven by DeFi, staking and non-fungible tokens (NFTs), among others.
Another reason for the price discrepancy between the coins is the overarching tokenomics. ETH has an infinite theoretical supply of tokens, but the circulating supply remains restricted to around 120 million. Comparatively, XRP’s circulating token supply is nearly 60 billion (with a 100 billion maximum supply.)
Did you know? For many years, Ripple faced scrutiny from the US Securities and Exchange Commission, which charged the company in December 2020 with selling XRP as an unregistered security. The legal battle saw victories for both sides over its four-year span. In March 2025, the case reached its conclusion when the SEC dropped its appeal of a 2023 ruling by Judge Analisa Torres, which determined that XRP is not a security for retail sales on exchanges, while institutional sales were deemed unregistered securities offerings.
Ethereum vs. XRP Ledger: Which is better?
Choosing between Ethereum and XRP Ledger hinges on your personal goals, as both offer compelling strengths tailored to different priorities in the evolving crypto landscape as of March 2025. For investors, each presents a robust case for driving digital asset adoption.
Ethereum’s backbone for Web3 and DeFi stands out, supporting thousands of DApps that cement its leadership in blockchain innovation. XRP Ledger, bolstered by growing institutional backing, offers a high-growth potential asset in XRP, especially with the SEC lawsuit resolved in March 2025 and the RLUSD stablecoin enhancing its payment ecosystem, appealing to organizations embracing crypto transactions.
For practical use cases, XRP Ledger delivers fast, low-cost transactions, processing up to 1,500 TPS with its borderless payment focus, while Ethereum remains the leader in smart contract functionality, powering a vast DApp ecosystem despite its current 50–60 TPS, with scalability upgrades in progress.