What will it take for XRP to replace Bitcoin as digital Gold

XRP has hit one key milestone after another in 2025, while Bitcoin disappointed users awaiting a massive rally. With the SEC vs. Ripple legal battle drawing to an end and Ripple’s victory, XRP hit a peak of $3.40 in January, rewarding long-term holders.

Bitcoin (BTC) is slowly losing its edge as a “safe haven” during geopolitical crises and Ethereum is in a state of decline, XRP stands out as a key competitor to the largest cryptocurrency’s “digital Gold” narrative in 2025. 

Ripple lawsuit legal drama: Quick recap 

Ripple, the payment remittance firm that battled the U.S. Securities and Exchange Commission for nearly five years, emerged victorious and settled for $50 million. The SEC had initially sought $125 million. The settlement provided legal clarity for XRP, the native token of the XRP Ledger, allowing it to be traded freely on exchange platforms.

The legal saga derailed years of progress for XRP, resulting in delisting from major exchanges, loss of business and partnerships for Ripple and a decline in overall demand and adoption among users. 

The SEC vs. Ripple lawsuit’s end opened the floodgates to institutional adoption, renewed interest from retail traders and listing on major exchange platforms across the ecosystem.

XRP wins institutional trust, demand with lawsuit victory

Institutions such as Coinbase Derivatives, Bitnomial, and ProShares have filed for ETFs tied to XRP. Coinbase Derivatives listed XRP futures on April 21, stating that the contracts are overseen by the CFTC and offer a capital-efficient way to gain XRP exposure.

In March 2025, Bitnomial launched physically settled XRP futures contracts, differentiating them from cash-settled options.

ProShares recently updated its filing to set April 30 as the launch date for an XRP futures-based exchange-traded product. Grayscale, Bitwise, 21Shares, CoinShares, and Canary Capital have also submitted applications for spot XRP ETFs, signaling growing institutional confidence in the asset post-lawsuit.

Bitcoin’s digital Gold narrative is fading

Two key events charting the path for XRP to become the new “digital Gold,” are Bitcoin’s fading association with being digital Gold or a Gold-alternative, and XRP’s rising demand and value amidst institutional investors and traders. 

While Bitcoin recently climbed back above $91,000 for the first time in 45 days, XRP has outperformed it with year-to-date gains of 3.71% and six-month gains of over 300%, according to TradingView.

Bitcoin’s detachment from U.S. equities and gold’s rally to a new all-time high are shaping the current market cycle. Analysts at JP Morgan noted increased pressure on Bitcoin’s narrative as digital gold under current conditions.

JP Morgan analysts said in a written note that the current market condition has increased pressure on Bitcoin’s narrative as digital Gold. 

While the shiny metal benefits from economic uncertainty and gains from stronger demand, Nikolaos Panigirtzoglou, Managing Director at JP Morgan says, “ Bitcoin’s volatility and correlation with equities raises questions over its ‘digital gold’ narrative. Looking forward, we see Gold continuing to rise as the major beneficiary of the debasement trade.” 

The “debasement trade,” which fuels demand for inflation-resistant assets like gold and Bitcoin, appears to be favoring gold more strongly. With investors adopting a risk-off stance, capital has been flowing out of equities and crypto into gold.

Bitcoin’s volatility puts it at par with technology stocks for investors, in terms of risk-reward and JP Morgan analysts believe BTC value is $62,000, if estimated production cost is considered and has a volatility-adjusted value of $71,000. 

Could XRP become digital Gold?

XRP led all other assets in weekly inflows among global crypto funds, attracting $37.7 million. In contrast, Ethereum and Bitcoin exchange-traded products recorded outflows of $26.7 million and $6 million respectively, according to CoinShares.

XRP is now the third most successful crypto asset this year, with $214 million in net inflows. The combination of investor returns, ETF filings, and renewed demand supports the growing narrative that XRP could be seen as a “digital gold” alternative.

U.S. President Donald Trump’s proposed inclusion of XRP in a federal crypto reserve could further strengthen this outlook, especially as Bitcoin continues to lack utility for everyday users outside the crypto ecosystem.

XRP price forecast

XRP/USDT daily price chart shows two key momentum indicators, the RSI and MACD support a bullish thesis for the second-largest altcoin. XRP could rally 16% to re-test sticky resistance at $2.50. 

The level coincides with the 50% Fibonacci retracement of the decline from the January 2025 high of $3.40  to the April 7 low of $1.61. A 40% rally could push XRP to re-test the psychologically important $3 level. 

The RSI is trending upward and currently reads 52, above the neutral 50 mark. MACD is also bullish, with green histogram bars rising above the neutral line. This suggests underlying strength in XRP’s price action as the broader crypto market recovers.

In the event of a correction or flash crash, XRP could revisit support at $2 before moving lower.