Ripple’s XRP token had a few rough years after the SEC’s lawsuit against the fintech company in December 2020. However, the suit was settled in 2025, leading to a big spike in XRP investor sentiment. The popular crypto went on to hit a new all-time high after more than seven year, climbing to $3.65 in July of last year. With more regulatory clarity and less baggage, let’s discuss if XRP can become a good hedge for your portfolio.
Can XRP Be A Good Hedge For Your Portfolio?
Hedges are assets that can counter volatile market environments. Assets like gold and silver maintained gains even during times of distress, as seen in late 2025 and early 2026. However, cryptocurrencies are plagued by extreme volatility that often ramps up in times of uncertainty. XRP, likewise, has seen violent price swings over the last few months. Although the asset climbed to an all-time high of $3.65 in July 2025, its price has fallen by more than 61% since its peak, according to CoinGecko’s XRP data.
Bitcoin (BTC) has been named as a potential hedge among crypto assets. However, the original crypto is also not safe from bearish market forces. BTC hit an all-time high of $126,080 in October of last year, but has since dipped by 38.6%.
Also Read: SoFi Technology Allows XRP Deposits For 13.7 Million Banking Customers
Given their high volatility, crypto assets such as Bitcoin (BTC) and XRP do not make good hedges. These assets are better held for the long term. XRP’s price has risen by 52,584.3% since 2014, while Bitcoin’s (BTC) price has risen by 114.13K% since 2013. Cryptocurrencies can behave like hedges, given that you entered quite some years ago and cyclical dips don’t matter much. However, buying cryptocurrencies during times of uncertainty will most likely add to your financial worries, rather than behave like a hedge.
