Bitwise CIO Names Key Reason Behind XRP's Success

Bitwise's Matt Hougan: XRP's Success Rooted in Community Strength

Matt Hougan, Chief Investment Officer at Bitwise, believes the success of XRP largely stems from the strong community supporting the token. After attending a recent XRP event in Las Vegas, Hougan observed that the XRP ecosystem is increasingly recognizing the distinct roles of XRP and Bitcoin in the market.

"I think the XRP world is embracing the idea that BTC and XRP serve different markets and that BTC thriving doesn't disrupt what XRP aims to achieve," he said.

Meanwhile, Ripple co-founder Chris Larsen, who previously supported a Greenpeace campaign criticizing Bitcoin's proof-of-work (PoW) consensus mechanism, has shifted his stance. He now acknowledges Bitcoin as environmentally sustainable, given that over 50% of mining relies on renewable energy.

Despite Larsen's clarification, tensions between the Bitcoin and XRP communities persist. Some Bitcoin advocates remain skeptical, viewing his change of tone as an effort to mitigate reputational damage.

At the same XRP event, Ripple CEO Brad Garlinghouse sought to foster unity, emphasizing that the Bitcoin community is not an adversary.

Bitwise has projected that XRP could potentially reach nearly $30 by 2030 if it gains significant traction in payments and tokenization. The firm also filed for a spot XRP ETF in October, boosting optimism around the token. However, the SEC has delayed its decision on this and other competing XRP ETF proposals.