Will XRP Beat Palantir in the Next 5 Years? Three Reasons Revealing the Path of Encryption's Comeback

Since 2025, Palantir Technologies (PLTR) has had an amazing stock performance, doubling in price this year, far exceeding the approximately 40% pump of Ripple (XRP). However, the golden rule of the investment market is that past performance does not guarantee future results.

This article will analyze why XRP is expected to outperform Palantir in investment returns over the next five years from three perspectives: valuation pressure, regulatory benefits, and practical advantages.

Valuation Pressure: Concerns Over Palantir's High Price-to-Earnings Ratio

Palantir, as a star company in the field of artificial intelligence and data analysis, has indeed shown impressive revenue and profit growth, but its valuation has reached extremely high levels:

Expected Price-to-Earnings Ratio (P/E): Close to 244 times

PEG Ratio (Price/Earnings to Growth Ratio): 4.12, indicating that growth potential has been highly reflected in the stock price.

This means that, even if Palantir continues to grow, its stock price upside may be limited. In contrast, the price of XRP depends more on supply and demand dynamics, and the potential for future demand growth is gradually being released.

Regulatory and Capital Market Favorable: XRP Demand May Surge

In the next five years, two regulatory and policy trends may become significant catalysts for XRP:

XRP spot ETF is expected to be approved.

The SEC has approved spot Bitcoin and Ethereum ETFs, and the market generally expects that an XRP ETF is only a matter of time.

Once approved, the ETF will buy large amounts of XRP, driving up market demand.

401(k) Retirement Fund Investment in Crypto Assets

U.S. President Trump has signed an executive order allowing 401(k) account holders to hold alternative assets, including cryptocurrencies.

If combined with an XRP ETF, it will bring long-term inflows of capital from the pension market to XRP.

Once these two positive developments are realized, the funding situation for XRP will undergo a qualitative leap.

Practical Advantages: XRP's Technology and Applications Lead

XRP has clear advantages in terms of transaction speed, cost, and energy consumption compared to Bitcoin (BTC) and Ethereum (ETH):

Transaction speed: Settlement completed in 3–5 seconds (BTC about 500 seconds, ETH about 15 transactions/second)

Transaction cost: approximately $0.0002 per transaction (BTC about $0.50, ETH Gas fee higher)

Scalability: Capable of processing up to 1,500 transactions per second, far exceeding ETH's 15 transactions per second.

Low energy consumption: more environmentally friendly, suitable for large-scale payment scenarios.

These features make XRP an ideal solution for cross-border payments and small transactions. As financial institutions and consumers become more aware of its advantages, the adoption rate of XRP is expected to increase rapidly, and its market capitalization may further approach that of BTC and ETH.

XRP and Palantir's Five-Year Outlook Comparison

Conclusion

Although Palantir remains competitive in the AI and data analytics space, its high valuation suggests that its stock performance over the next five years may not be as dazzling as in the past.

In contrast, XRP, with the potential opening of the ETF and pension markets, along with its absolute advantages in trading speed, cost, and energy consumption, is expected to see a demand explosion in the next five years.

For investors seeking medium to long-term high growth potential, XRP may become a dark horse that surpasses Palantir.