Top Cryptocurrencies That Outperformed XRP in 2021

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The year 2021 was a rollercoaster for the cryptocurrency market, with several digital assets reaching unprecedented highs. While XRP struggled under the weight of ongoing legal challenges, other cryptocurrencies surged ahead, showcasing strong adoption, technological innovation, and investor confidence. Despite its solid use case in cross-border payments, Ripple’s native token, XRP, failed to keep pace with the explosive growth seen in other major digital assets.

This article explores the top cryptocurrencies that outperformed XRP in 2021, analyzing their market performance, technological advancements, and real-world utility. Whether you're evaluating investment opportunities or tracking market trends, understanding these standout performers offers valuable insights into the evolving crypto landscape.

Solana (SOL): Speed and Scalability Driving Growth

One of the most impressive performers of 2021 was Solana (SOL). Unlike XRP, which faced regulatory headwinds, Solana capitalized on its high-speed blockchain infrastructure to attract developers and investors alike. Powered by its unique Proof of History (PoH) consensus mechanism, Solana delivers fast transaction speeds and low fees—key advantages in the decentralized application (dApp) ecosystem.

Solana’s total value locked (TVL) in decentralized finance (DeFi) protocols grew from around $400 million to over $14 billion within the year, reflecting surging network adoption. Its market capitalization climbed to over $67 billion, securing it a top-five position among cryptocurrencies—up from outside the top 10 earlier in the year.

In contrast, XRP’s market cap hovered around $47 billion, placing it behind Solana despite historically being a top-tier asset. SOL reached an all-time high of $241 in November 2021, while XRP remained far below its previous peak of $3. The inclusion of Solana in Grayscale’s digital asset trust further validated its growing institutional appeal.

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Dogecoin: The Meme Coin That Defied Expectations

Another standout was Dogecoin (DOGE)—a meme-inspired cryptocurrency originally created as a joke. Despite lacking advanced technology or complex use cases, Dogecoin saw astronomical gains in 2021, outperforming even established projects like XRP.

Fuelled by social media hype and endorsements from public figures like Elon Musk, Dogecoin surged to an all-time high of $0.75. At its peak, DOGE briefly overtook XRP in market capitalization, becoming the third-largest cryptocurrency by value—an extraordinary feat for a coin with no intrinsic utility beyond payments and speculation.

While XRP powers real-world cross-border transactions through the Ripple network and is used by financial institutions like MoneyGram, Dogecoin’s rise was largely driven by community sentiment and viral trends. Nevertheless, it became the third most widely accepted crypto for real-world payments after Bitcoin and Ethereum.

This highlights a key trend in 2021: market dynamics were increasingly influenced by retail investors and online communities rather than fundamentals alone.

Cardano (ADA): Smart Contracts Elevate Performance

Cardano (ADA) also outpaced XRP in 2021, thanks to strategic network upgrades and growing ecosystem development. Like XRP, Cardano has long been a fixture in the top 10 cryptocurrencies by market cap—but unlike XRP, ADA achieved new all-time highs during the year.

The pivotal moment came in September 2021 with the Alonzo hard fork, which introduced smart contract functionality to the Cardano blockchain. This allowed developers to build DeFi applications, NFTs, and other dApps on the platform, significantly increasing ADA’s utility and demand.

As a result, ADA reached a price of around $3 and climbed to a market cap exceeding $53 billion—placing it sixth globally, ahead of XRP’s seventh-place ranking. At one point, Cardano even became the third-largest cryptocurrency by market value, surpassing major players amid strong developer activity and investor optimism.

XRP, meanwhile, remained constrained by uncertainty surrounding the SEC lawsuit, limiting its ability to innovate or expand its ecosystem at the same pace.

Ethereum (ETH): The DeFi Powerhouse

Although Ethereum (ETH) and XRP serve different purposes—Ethereum as a decentralized computing platform and XRP as a payment protocol—both are foundational cryptos with long histories. However, Ethereum’s performance in 2021 dwarfed that of XRP.

ETH gained approximately 670% in value during the year, driven by explosive growth in decentralized finance (DeFi), non-fungible tokens (NFTs), and layer-2 scaling solutions. Ethereum solidified its position as the leading blockchain for dApp development, hosting thousands of projects across finance, gaming, and digital identity.

In contrast, XRP’s annual gain was only about 50%, hampered by exchange delistings and legal restrictions. While Ripple continues to partner with global payment providers, Ethereum's broader ecosystem gave it a significant edge in market sentiment and capital inflows.

Moreover, Ethereum maintained its status as the second-largest cryptocurrency throughout 2021, while XRP temporarily dropped out of the top 10—a clear indicator of relative underperformance.

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Shiba Inu (SHIB): The Meme Token Phenomenon

Rounding out the list is Shiba Inu (SHIB), another meme-based token that exploded in popularity. Inspired by Dogecoin, SHIB saw gains exceeding 70 million percent in 2021—making it one of the most dramatic success stories of the bull run.

Despite having minimal intrinsic utility compared to XRP’s robust payment infrastructure, SHIB gained traction through community-driven marketing and the launch of ShibaSwap, a decentralized exchange enabling staking and yield farming.

Notably, SHIB achieved listings on major exchanges like Coinbase—ironically at a time when XRP had been removed due to regulatory concerns. At its peak trading volume, SHIB surpassed XRP by two times, signaling strong retail interest.

Though SHIB hasn't overtaken XRP in market cap, its rapid rise underscores how sentiment and accessibility can drive market movements independent of technical merit.

Frequently Asked Questions (FAQ)

Q: Why did XRP underperform in 2021?
A: XRP's performance was heavily impacted by the SEC lawsuit alleging unregistered securities sales. This led to exchange delistings, reduced liquidity, and investor uncertainty—factors that suppressed price growth despite Ripple's strong use case in international payments.

Q: Can XRP still recover and outperform again?
A: Yes—depending on the outcome of the SEC case. If resolved favorably, XRP could regain exchange support and investor confidence, potentially unlocking significant upside based on its underlying technology and institutional partnerships.

Q: What makes Solana different from XRP?
A: Solana focuses on high-speed decentralized applications using Proof of History, while XRP specializes in fast cross-border settlements via the Ripple network. Solana’s versatility in DeFi and NFTs gave it broader appeal in 2021.

Q: Are meme coins like Dogecoin and Shiba Inu good investments?
A: They carry high risk due to volatility and lack of fundamentals. While some investors made substantial gains in 2021, long-term sustainability depends on ecosystem development and market sentiment—not just speculation.

Q: Is Ethereum still a better investment than XRP?
A: Ethereum offers a more diverse ecosystem with smart contracts, DeFi, and NFTs. For investors seeking exposure to blockchain innovation beyond payments, ETH presents stronger growth potential—though both have distinct roles in the crypto economy.

Q: Will regulatory issues continue to affect XRP?
A: Until the SEC case concludes, regulatory overhang will likely persist. However, a favorable ruling could catalyze renewed adoption and price appreciation.

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