The total value of all cryptocurrencies in circulation hit a new record high of $3.9 trillion in December, led by surging gains in some of the industry's most popular coins and tokens, like XRP (CRYPTO: XRP), Dogecoin (CRYPTO: DOGE), and Bitcoin (CRYPTO: BTC).

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XRP Price data by YCharts.

As you can see in the above chart, most of the recent gains were realized following President Trump's U.S. election win on Nov. 5. He promised to make the U.S. the crypto capital of the world on the campaign trail, and his administration is already making moves that could drive value across the industry.

XRP, Dogecoin, and Bitcoin could each benefit from Trump's crypto-friendly policies for different reasons, but which one is the best buy in 2025?

The case for XRP: A new regulatory regime

Ripple is the creator of the Ripple Payments network, which allows banks to settle transactions with each other directly even if they use different infrastructure. It eliminates the need for intermediaries, which means global payments can be processed within seconds instead of days.

Ripple created the XRP token to standardize transactions within Ripple Payments. For example, two banks located in different countries can transact in XRP instead of using fiat money, because it allows them to bypass currency exchange fees and other transaction costs. This sets XRP apart from other cryptocurrencies, because it has a legitimate use case which could drive sustainable long-term value.

However, the U.S. Securities and Exchange Commission (SEC) sued Ripple in 2020, alleging it violated the law because of the way it distributes XRP. Since Ripple controls 42.2 billion tokens and releases them gradually each month to meet demand, the SEC argued that XRP should be a registered financial security (like a stock or a bond). If the SEC were to win the case, Ripple (as the issuer) would have to operate under a strict regulatory framework.

A judge partially resolved the matter last year, ruling that XRP is only a financial security in specific circumstances. Ripple was hit with a $125 million fine, and investors mostly viewed the outcome as a win. However, the SEC has appealed the verdict, which could drag the case out for several more years.

That's why Trump's election win sent XRP soaring. The acting SEC chairman he appointed (Mark Uyeda) has already started pausing active lawsuits against crypto companies like Binance, and there is speculation Ripple's case could be next. Resolving these legal proceedings could pave the way for more upside in XRP, because it would give Ripple more freedom to drive adoption.

The case for Dogecoin: Elon Musk -- but there's a catch

Dogecoin is a meme token, so it doesn't really have a use case underpinning its value. Instead, its price moves at the whims of speculative investors. That shouldn't come as a surprise, since its two founders created it in 2013 as a joke (their words, not mine).

Elon Musk has frequently promoted Dogecoin on social media since 2021, sharing memes and engaging in friendly banter with other enthusiasts. He even participated in a Dogecoin-themed skit on Saturday Night Live (SNL) in May of that year. Ironically, the token peaked at a price of $0.73 during his appearance, and it was down by more than 90% less than a year later.

Many investors pinned their hopes on the idea that Musk would create tangible value for Dogecoin. His electric vehicle company, Tesla, did start accepting it as payment for some items of merchandise, but that didn't really move the needle. Ultimately, Musk didn't have a concrete long-term plan to back up his social media banter.

But investors' hopes were reignited last year. Musk was a big financial backer of Trump's campaign, and following the election, the President appointed him to run a group to help the U.S. government reduce costs. It's called the Department of Government Efficiency, or DOGE for short, which is a reference to Dogecoin.

Here's the catch: There is no indication Dogecoin will have any involvement with the DOGE group, so its powerful rally since Nov. 5 is based entirely on speculation. It's possible that some of Trump's crypto-friendly policies could help Dogecoin enthusiasts create new use cases to drive value, but it's unclear how that will shake out.

Bitcoin is the world's largest cryptocurrency, with a market capitalization of $1.9 trillion. While XRP and Dogecoin are still trading below their all-time highs from a few years ago, Bitcoin continues to set new records on the back of growing demand from individuals and institutions.

Bitcoin is a truly decentralized asset, meaning there is no individual or company capable of altering its supply or its mechanics. As a result, it doesn't fit the SEC's definition of a financial security, so it hasn't faced the same regulatory scrutiny as Ripple and XRP. In fact, the SEC approved dozens of Bitcoin exchange-traded funds (ETFs) last year, which allow financial advisors and institutional investors to buy the cryptocurrency in a regulated manner.

Many investors consider Bitcoin to be a legitimate store of value, kind of like a digital version of gold. That's one of eight reasons that Cathie Wood's Ark Investment Management says the cryptocurrency could soar to $1.48 million per coin by 2030, representing a potential upside of 1,438%. The company also believes many businesses and governments will eventually hold Bitcoin on their balance sheets to hedge against economic headwinds like inflation, but also because, like gold, it consistently appreciates in value.

President Trump has already thrown his support behind creating a strategic Bitcoin reserve within the U.S. government, so it's possible many other governments will follow.

Michael Saylor, the co-founder of MicroStrategy, is even more bullish. He thinks over $500 trillion worth of physical assets will be "tokenized" on the blockchain by the year 2045, and Bitcoin will be the official reserve currency. If that scenario plays out, he believes Bitcoin could trade at a whopping $13 million per coin, implying an upside of 13,413% from its current price as of this writing.

Image source: Getty Images.

The verdict

Which of these three cryptocurrencies is the best buy in 2025? I'm going to rule out Dogecoin immediately because there are no fundamentals supporting its value, so further upside is unlikely without another speculative frenzy.

This might come as a surprise, but I think XRP will also struggle to deliver further gains, even if Ripple's regulatory woes are resolved. Simply put, banks don't necessarily have to use XRP in order to use Ripple Payments. They can transact using fiat currencies instead, while still benefiting from rapid transfers. As a result, further upside in XRP might depend more on speculation than organic demand.

That leaves Bitcoin. With ETFs consistently attracting inflows, and the possibility of a U.S. government reserve on the horizon, I think it will comfortably outperform XRP and Dogecoin this year (and beyond).

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