The Smartest Cryptocurrency to Buy With $100 Right Now

Key Points

• XRP's price has skyrocketed since its developer, Ripple Labs, settled a lawsuit with the SEC.

• Removing the litigation from the picture opens up opportunities for what Ripple actually developed the XRP ledger and XRP token for.

• Despite its high potential and encouraging developments, XRP will likely remain a volatile investment.

• 10 stocks we like better than XRP ›

Things couldn't go much better this year than they have for investors who own XRP (CRYPTO: XRP), also referred to as Ripple by some.

The cryptocurrency, and also the native token for the XRP ledger, has gained about 380% during the past 12 months. There have been numerous positive developments for XRP since the Trump administration took office earlier this year, and that has sent market sentiment soaring.

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While it's never a bad idea to take some profit after such an impressive run, there could still be upside ahead.

Here is why XRP might be the smartest cryptocurrency to buy with $100 right now.

Image source: Getty Images.

Clouds of uncertainty have parted to reveal clearer skies

The single biggest reason for XRP's monumental price movement is likely the resolution of a legal overhang that for several years had cast a shadow over XRP. In 2020, the Securities and Exchange Commission (SEC) sued Ripple Labs, the company that developed XRP and the XRP ledger, alleging that it had violated securities laws by selling XRP tokens.

After a lengthy legal battle, a judge ruled that XRP sales on exchanges to individual investors had not violated any securities laws; however, Ripple Labs' sales of XRP to institutional investors did. The mixed ruling left the parties jockeying over appeals and potential penalties. Once Trump entered office, the two parties worked to resolve the lawsuit and finalized a $50 million settlement in May 2025, clearing the path forward for Ripple.

Since then, XRP's price has skyrocketed, a clear sign that the uncertainty surrounding Ripple Labs had been weighing on XRP's price. Removing the lawsuit from the picture has opened up XRP to new opportunities. For instance, institutional investors have filed to launch spot exchange-traded funds (ETFs) that would hold the underlying XRP tokens on behalf of investors.

Such products make XRP more accessible to investors and simultaneously create demand for the cryptocurrency.

Opportunities ahead for the Ripple network

Meanwhile, the path is now clear for institutions to utilize the XRP ledger for its intended purpose: to facilitate cross-border financial transactions quickly and at scale.

Currently, the vast majority of cross-border transactions occur on a messaging network between banks, known as SWIFT. The XRP ledger is a decentralized blockchain that utilizes a trust-based system, in which the blockchain nodes validate transactions. It is far more efficient, enabling significantly faster cross-border transactions than SWIFT, and at a minimal cost.

Ripple Labs has launched a stablecoin that utilizes the XRP ledger. If it gains traction, the increased traffic would also likely bode well for XRP since the token essentially behaves like a bridge currency between the two sides of every transaction on the XRP ledger. In other words, money is converted to XRP on one side of a transaction, then converted and settled as another currency on the other end.

Today's world economy is steadily becoming increasingly globalized, and breaking down barriers between different countries and financial systems could be a tremendous opportunity during the coming years. If things continue in this direction, XRP's continued prominence in the cryptocurrency sector could lead to additional usage and demand for the token over the long term.

One crucial reminder about volatility

Cryptocurrencies have historically been volatile investments, and there's no reason investors should expect anything different in the future. Ideally, the XRP ledger's volume increases to the point that the XRP token's price stabilizes. However, it could take a long time to arrive at that point, if it even happens.

Therefore, it is generally best to own XRP and other cryptocurrencies as part of a diversified portfolio. Investing $100 into XRP probably won't make or break your portfolio, and if XRP does realize its potential, you might get much more out of that $100 investment than you expect.

Often, managing risk is just as important as picking the right investments. As long as you maintain XRP as a reasonable allocation in your portfolio, its high long-term ceiling might make it the smartest cryptocurrency to buy with $100 right now.

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Justin Pope has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends XRP. The Motley Fool has a disclosure policy.