The altcoin market is reviving with hopeful signs – although it cannot yet be said to be as strong as before, the signs of recovery from major names are attracting attention. Most of these fluctuations stem from the 'giants' in the industry, who are dominating and absorbing all profits, while smaller altcoins are still struggling behind. So, when the market selects promising 'stars', who should you go with: XRP or SEI? One is a long-time 'veteran' in the institutional finance field, while the other is a strong rookie in the trading technology world. Let's analyze to gain a clearer perspective.
XRP – Strength from large organizations
XRP, the currency of Ripple, has proven its enduring strength over time, overcoming numerous challenges to become an essential player in the cryptocurrency space. What makes XRP stand out is the strong organization behind it. Ripple is currently striving to obtain national banking licenses and, more importantly, to open a Master account at the Federal Reserve. If successful, Ripple will join a small group of companies with direct access to the global financial system, opening up countless potential opportunities in the future.
In terms of technology, XRP Ledger (XRPL) has made significant progress by being fully compatible with the Ethereum Virtual Machine (EVM) thanks to collaboration with Axelar. This not only allows XRP to connect with over 50 different blockchains but also opens up the ability to transact DeFi applications, NFTs, and tokenized assets – all of which can be done on the XRP Ledger. Another important highlight is the significant interest from financial institutions in XRP, as evidenced by 19 ETF applications awaiting approval, including major names like Franklin Templeton and Grayscale. Polymarket's predictions indicate an 87% chance of at least one ETF application being approved by 2025, reflecting very high expectations for XRP's growth potential.
Additionally, the interest from large organizations cannot be overlooked. A Chinese company has planned to buy up to 300 million USD worth of XRP as reserves, while another company – Hyperscale Data – is also planning to invest 10 million USD. In Dubai, XRP is currently being widely used for international remittance transactions. This shows that XRP is increasingly gaining trust and favor from major financial institutions worldwide.
However, the biggest issue that XRP faces is its supply. With a total of 100 billion tokens, only about 59 billion XRP are currently in circulation, meaning Ripple could release billions more tokens if it wanted. This raises concerns among investors about the potential dilution of the value of this currency, although XRP has maintained considerable stability throughout the past.
SEI Network – The bright new star in the blockchain world
Launched not long ago, in August 2023, SEI Network quickly attracted the attention of the blockchain community thanks to its unique features and outstanding potential. With a clear goal of optimizing DeFi transactions and high transaction frequency, SEI is designed to handle large volumes with extremely impressive speed. SEI's network can complete each transaction in just 400 milliseconds and is expected to achieve processing speeds of up to 250,000 transactions per second in the near future. This is an astonishing figure, enough to make any competitor in the blockchain space cautious.
SEI is not only fast but also extremely powerful in terms of technology. Especially, with the upcoming Giga upgrade, SEI will enhance its compatibility with the Ethereum ecosystem, opening up a vast space for DeFi applications, NFTs, and other projects that are thriving on the Ethereum platform. If this upgrade is successful, SEI could become a formidable competitor in the field of EVM-compatible blockchain, providing superior speed and efficiency compared to many current competitors.
Additionally, SEI is pioneering the integration with artificial intelligence (AI), a current hot technology trend. This shows that SEI is not limited to a single technology area but is expanding and seeking opportunities in other innovative and promising fields. This combination promises to bring breakthrough advancements not only in DeFi but also across many other industries, from finance to smart applications.
Currently, the SEI token price fluctuates around 0.25 USD, with a market capitalization of approximately 1.4 billion USD. Although this capitalization is modest compared to industry 'giants', SEI still has plenty of room to grow and expand. However, as a new project, SEI will certainly face many challenges in its maturation journey, especially in maintaining stability and proving sustainable growth potential.
Nevertheless, if SEI can overcome these challenges, it will be a strong candidate in the blockchain world, with strong growth potential in the coming years.
Should you choose the veteran or the rookie?
XRP, representing stability and experience, has proven itself to be a reliable 'veteran' in the world of cryptocurrency. With a strong organizational foundation, continuously improving technology, and legal transparency, Ripple has weathered numerous storms and steadfastly maintained its position. Thanks to relationships with major financial institutions, XRP has built a strong community and has significant influence in the traditional financial space. However, with a market capitalization of up to 135 billion USD, expectations for a strong breakthrough are not easy. XRP is suitable for investors seeking stability, avoiding high risks in a volatile market.
Meanwhile, SEI is a promising 'rookie', with strong growth potential thanks to advanced infrastructure, superior transaction speed, and a robust expansion plan into hot areas like AI and Ethereum compatibility. SEI presents an attractive investment opportunity for those willing to take risks for worthy rewards. However, SEI still needs more time to prove its stability and sustainability, and that is the factor that makes investors need to be cautious. With a new project, the risks are always high, but looking at its development potential, SEI could offer extremely appealing profits in the future.
Ultimately, the question is not 'who is better than whom', but rather who will you go with in the current phase? Will you choose XRP, backed by a strong organization and the ability to overcome long-term challenges? Or will you try your luck with SEI, the new star rising with strong breakthrough potential in the future?
Regardless of the choice, both are reliable 'warhorses' that can provide you with attractive opportunities in a gradually revitalizing cryptocurrency market.