XRP Performance and Misunderstandings

XRP has been performing well lately, but its competitive landscape remains unclear to many. Recent discussions suggest that Circle could pose a threat to XRP. However, crypto lawyer John Deaton clarifies that XRP does not compete with Circle; rather, it is Ripple, the company behind XRP, that competes with Circle.

The controversy began when Barstool’s Dave Portnoy sold his XRP based on advice that Circle would compete with it. This decision turned out to be costly, as XRP has surged over 38% in the past two weeks, becoming the top performer in the large-cap category.

Deaton made it clear that Ripple is competing with Circle using its new stablecoin, RLUSD, and not XRP. He emphasized that Ripple and Circle operate on the same financial technology layer; both are fintech companies that build infrastructure. XRP is merely the digital asset that underpins the XRP Ledger and is not intended to compete with USDC or enter the stablecoin race.

Deaton also highlighted that there were once rumors about Ripple considering acquiring Circle, adding depth to their relationship beyond rivalry.

As XRP continues to thrive and Ripple introduces RLUSD into the stablecoin market, it’s essential to understand the distinct roles of these entities: one is a token, while the other is a company. Confusing the two can lead to costly mistakes in the crypto space.