Circle vs Ripple🔥$CRCL vs $XRP A.I. Stablecoin Analysis🚀

0:00 Stablecoins are on the rise today. We're going to be breaking down both Circle and Ripple to take a look at what's going on in this market, because this may lead to something much bigger. So stay tuned. Before we get started, I want to thank our sponsor, and that's EtherFi, where you guys can earn cash back as well as doing tokenized stock trades. All of this is available over on Ether.Fi, be smart money. A ton of features built for every asset. You get to spend on this. There's a whole slew of personal and business features. core platforms that you can use, whether you get into making it kind of your own new bank or whether or not you want to use this as a business platform or even lux up and get into some of the better

0:40 yielding platforms that are out there. So check out EtherFi. All you have to do is visit it, EtherFi.com. Use our link down below. It's going to get you set up and you guys can get started where you can get away from the banks. Now, I want to go over And start with this tweet right here. This, of course, is Vitalik talking about cryptography and securing crypto may have a lot of hidden flaws. And the thing he is concerned about right now is that the bots can eventually get in onto this. And this is what we are seeing more and more exploits within crypto. But it also is a potential where crypto can start to address this, which I think we're going to see exploits in the traditional markets. And I'll talk about that. That is where

1:22 I think the vector is going to be. In fact, this is a good example right here. Now we've got hackers going after everything from fridges, you name it. I think the problem eventually is going to be anything that is connected is going to have a problem that includes bank accounts and things of that nature. So we are dealing with a new era around bots and what that might look like. And that is the problem right now.

1:46 I want to go to this particular story here. This is the biggest hack in crypto history that never happened. And this was in reference to XRP. And the issue was that AI discovered a vulnerability that let anyone mint infinite tokens on XRP. And here was the kicker that you have to pay attention to was the timeline. This was the incident response timeline that came up on this.

2:11 The initial report back in 2026 in September, and this was during the attack-a-thon event, the bug was confirmed on September 18th. So basically a month later, by October 9th, that's when the actual report was published and the public vulnerability disclosure. So 30 days in is how long it took the team to be able to address it, be able to announce this. Those are the kind of things I feel like just cannot happen, especially when you're talking about a company like Ripple and especially with what's going on the XRP ledger. Things that look around on this, of course, you had 473 mil in XRP hitting the NASDAQ today, and that is coming through Evernorth, which is now trading on XRP. And this was huge news. I

2:59 had Ashish on not too long ago, and this, I think, will continue to be An interesting issue because now you've got a very publicly oriented company trading on the public stock exchange that is correlated directly to XRP. And this is where I think things need to pay very close attention. One thing that Jack McDonald said right here was that stablecoins are on the fly, and he's talking about bringing together RLUSD on the XRP ledger. This, of course, was linked to Standard Charter's custody capabilities and the LMAX group.

3:36 This was news that just came out. They are now in prime time, not only with what's going on with Evernorth, but you also have with Standard Charter going into this. All of this is now putting Ripple at a heavy risk appetite, I think, in general, because you're going to have investors coming in and you're also going to have people targeting this. So this is a concern right now.

3:57 The other thing I look at is just some of the data. If you look at the XRP ledger, this is an example of TVL. And what's happened is it has absolutely flatlined versus the rest of stablecoin market cap that has continued to climb. And this is the thing. I think a lot of people are concerned that we are not seeing a lot of activity in terms of the XRP ledger. Here, of course, is Bitcoin has a similar track of just not a lot of activity on the chain. There is Ethereum starting to edge up, obviously, from right there back in 2020, explosion, bear market, and then growth again. Then you go into the winner of what I think will be this bull run is going to be Solana, especially as it's tied to to anything

4:41 that is stablecoin oriented, which of course is USDC as the leader there, absolutely just been growing since pretty much December of 23. One thing that did happen is when you look at RLUSD and where its performance has been, right here it looked as though it was a possibility. This was back in August where Ethereum actually went under in terms of XRP, RLUSD primarily. And that is the point I'm getting at because right after that, we've got RLUSD flying on Ethereum. And why is that? Why are we starting to see this kind of exposure right now where RLUSD is being used mostly there? So let's look at this because I think there are some opportunities here for Ripple. I think there's some opportunities for anybody really

5:29 out there if you're operating in chain. If you go in and look at this, people are willing to actually go to other chains if there's one key, and that is paying yields on this. And you can kind of see it right here with Robinhood exploding, especially on USDG. And the reason was is Robinhood exposed out their USDG rewards and yield, which is now 7%. Those are the kind of things that holders will do. And I think we're going to see more and more of this very competitively, but it may center around circle. Now I want to go over to a clip real quick, and this will get into Monica Long talking about that this may have not been that big a deal. Take a look.

6:12 I would say to the people saying there's nothing going on in XRP Ledger, First Ledger, Doppler Finance, Zamen, Flare, Braza Bank, Just Token, I can keep going, Aviva Investors, DVS. And if you look at the RWA charts, it's considered the number four chain for RWAs. So the proof is in the pudding.

6:33 There's a lot of names on there, and I would agree. There are a lot of names on there. The problem is we're not seeing the activity on that, and that's the issue I think that is facing users today. If you go to the RWA league table, it's not the number four unless this is at a different time, but right now, Stellar is holding the number four slot right behind Solana. And XRP Ledger is holding the number 10 slot.

6:54 So a small asset class comparison to what the overall with Ethereum is. So RWA I don't think is going to be the answer here for XRP Ledger if something major does not change. And I think this is all going to boil down to yields and also developer activity that eventually is going to play out on this. Now I want to go over to the circle chart and show you something here because this was pretty much the bottom right here after that earnings. We got the earnings bump. Then, of course, Circle exploded right up there to 100 bucks.

7:24 It slid back down to around 83. And this may be an opportunity when you start to look at the Circle chart. And I'll show you guys something long term here and what that might be. One of the reasons, of course, is what's happening with ARK. Now, ARK has launched also. an AI studio, this is going to be interesting because it will start to launch a lot of different tools that will be available. So let's compare Circle and what's happening with Ripple right now. Because Ripple, I would agree that they're building on the TradFi rail system.

7:57 That is something that is definitely going to be happening. Circle is doing the same thing. The one thing that Circle is doing, though, is they are starting to enter the new economy. And that is building anything on chain and getting ready for a Gentic. I think this is the step that we are going to see more and more companies taking. And it's kind of interesting because remember Circle, the first public traded company that eventually is going to be looking at launching a token. Imagine how this might work because you could look at Ripple and you'd have to flip the process because that hasn't happened yet. Part of that valuation right now is still held in XRP.

8:32 So think about that and then look at what Circle's future could look like. Here is a wait list project right now. This is building agents for all sorts of private workflows for you and me. And the thing that is going to happen, I hope this actually launches. And when it does, it'll be interesting. I think this is what is the future of where we're going to see agents.

8:54 And that is just going out, building small micro apps, getting the best yield for me, doing my bill pay. handling things like my tax advisory. These are the kind of things I think this is going to shift the whole idea of how software is used, how it's built. That's a bigger question. It's a bigger topic we probably should cover on another video, but it gets into where Circle is heading, and that is the future overall. Take a look at ARK. That only validates it right there.

9:20 I mean, this thing has absolutely skyrocketed up to almost a half a billion versus what we have seen with XRP Ledger and Of course, RLUSD. So to me, this is the only play, I think, when you look at stable coins right now. And it's not just that. Let's take a look at some of the validator cohort that they're courting right here. You got BlackRock, DTCC, Galaxy in their standard charter. Sumito, Visa, all of these playing into the hand of where Jeremy Allaire is pushing. All right, so I want to show you a clip here because this was Steve Kurz. He was on our show not too long ago. And we were asking about what was going on in Jeremy's presentation and how Circle was addressing the market. And even Galaxy Digital was concerned that there

10:08 was going to be pressure from all these different places. And in retrospect, what we're seeing is they're actually using ARK now as part of their strategy. So watch this clip.

10:18 Visa, MasterCard, Stripe, and Coinbase are reportedly partnering on a new stablecoin platform. Don't believe everything you read in the news. The track record of consortium coins, none of them have worked. And any distribution that they've gotten, they've had to pay subsidies. So these are actually money-losing products for those companies that are subscale. And you look at the data, all these other stablecoins and all of their transaction volume rounded to zero.

10:45 And don't believe everything you read in the news.

10:48 I'm not sure about the don't believe what you hear.

10:50 I'm sure there are a lot of consortium conversations that are happening.

10:53 All right. So that was Steve and I going at it in reference to that because I was kind of defending against Circle. And of course, if you look at Visa's own chain analytics, you can kind of see right there the winner is clear. It's USDC. And not by a little. It's by a long shot. Let me kind of zoom in on that for you guys so you can see these numbers. That's the numbers you're talking about, $ 41 billion in USDC versus USDG. This is in the lending protocol side, which I think is going to be the greater thing to track here, all the way down to PYUSD at only $ 421 million. And when you look at even USDG, I mean, you can kind of see, guys, this is not even a horse race right now with what's happening with Circle. So the opportunity is pretty big.

11:35 All right, so let's do something here. Let's do a comparison over on market cap of. Let's compare Circle. and XRP. If you look at the token versus where Circle is right now, market cap, and this is now at about a 3.8x performance. Let's compare that at the all-time high. Changes things dramatically. Now you're talking about a 10x performance in just the performance of where Circle is and would be if it continues to move in the direction that we're seeing it, which is playing into almost every major market out there and really, I think, the future, which is going to be agentic commerce and where that plays in.

12:15 All right, so let's take a look at the Q1 2025 XRP markets report. And this is an interesting day because something happened here. And what happened was this right here. Ripple's transparency has been used against the company, most notably by the former SEC leadership. But that's gone, guys. That's out of the way. And then after careful consideration, Ripple made the decision to sunset the report in its current form starting in Q2 25. This is a concern when you have people that are sunsetting these transparency reports which I think Ripple should bring these back. If you bring these back then it gives the holders an understanding of where this company is heading. More importantly the assets that

12:59 it holds because those are very very closely tied to the performance of XRP the token. So let's go take a look at Ripple's pre-IPO valuation and their funding rounds. And remember, they did a recent raise. And normally when you get these raises where the valuation is, remember, a company can set their valuation on what they ever want.

13:18 It's the market that sets the price. And what has happened is that when these raises occurred, we actually saw a deduction in the XRP price. So the market spoke and says, no, it's not worth that. And remember- that this is also a situation where Ripple is continuously selling tokens into these kinds of things. So at some point, this is going to change in terms of the market, or they've got to use this money to be able to drive the XRP price in some way. So be thinking about that. So let's go over, because this is the thing that I think a lot of the market is not completely getting. This is an example of the worst time to sell Circle is, I think, one of the worst trades that we've seen just yet. And the

14:05 reason why is even more astonishing. Take a look.

14:09 My first stock sale in a very long period of time has gone out. Circle stock did take a small haircut on this. So sold around 61, cost basis around the 70-ish number. Oh well. The Federal Reserve's FedNow system has the real potential of destroying the need for instantaneous 24-7 transactions from stable coins. FedNow cuts it out. instantaneous peer to peer payments. And I'm not trying to shill for the Fed. You know, it's not like.

14:42 All right. So let's go compare here because this is Fed now versus USDC. You're talking about U.S. versus global. The market is much bigger. We're also talking about 24 seven anywhere, any time cost is fractional. If that finality is immediate, And of course, you only need a wallet for USDC. This is by far the winner and will be the winner. FedNow is not even going to be a close 100th compared to where USDC and Circle is going to be heading. And when you look at it right here, just in terms of the chart, this was poor meet Kevin. I'm sorry, meet Kevin, but that was a bad time for me moving there. I mean, you're up 40% and that's after the dip. If you were to take it and sell it out at the right time,

15:34 you would have been up almost 70% on that high trading at about $ 100 for Circle. So I think, though, that this is still a trade. And it's one that we're going to be watching very closely. That's where Circle has been right there at the top at about $ 300. And that was before adoption, regulation. alignment, and now RWA and what we will see, I think, for the future, which is agentic commerce. And of course, that is all going to be on USDC, which of course is riding on Ethereum. And that is why, guys, those are the two biggest plays out there. Just to go back to that FedNow comparison right there, I was saying 13 seconds on Solana. This, of course, was wrong. This is the chart that we're looking at right now on speed when

16:21 it comes to transaction. And now what we're talking about is literally 150 milliseconds. That's right, 150 milliseconds finality. Not live yet, but that's the kind of thing we are going to see. Right now it's setting on the first full epoch that averaged 218 milliseconds, a far cry from 13 seconds. And it's only going to get faster. and Solana being one of the major chains, of course, trading, and USDC is the stable coin for Solana. All this makes sense because it's looking at the future of where digital transactions are going to occur. And then it's going to look at all the products and projects and, I think, innovations that are going to be built on these kind of chains. And I think AI is just going to

17:06 be the beginning of it. Agentech is going to explode it. And that is the future of where a lot of this is going. So stay tuned on this. If you like this video, hit like and subscribe, drop a comment down below, and also join our free private member group. The link is in the description.