Needless to say, the cryptocurrency industry has seen better days, with the prices of countless assets collapsing by 50% or more in the past several months. This has propelled analysts to speculate that this is no longer a bull market correction; instead, the majority believes the bear phase has begun.
If that’s the case, then let’s see which altcoins between two of the most popular ones – XRP and ADA – can cope better under times of uncertainty, fear, and sell-offs.
To gain further perspective on the matter from an unbiased analysis, we decided to touch upon perhaps the most widely utilized AI chatbot solution – ChatGPT. It began by acknowledging the fact that the narrative in crypto has shifted from “how high can this asset go” to “which altcoin is likely to lose less.”
When it came to comparing the two altcoins in question, the AI platform outlined several categories in which either one can outshine the other. In market structure and liquidity, it noted that XRP typically benefits from deep exchange liquidity, high derivatives activity, and strong global trading presence.
Although ADA also has strong liquidity, it has historically shown higher volatility during drawdowns and has been more aggressively sold by retail investors. As such, this point went for Ripple’s cross-border token, which actually took the second win as well, dubbed “narrative resilience.”
ChatGPT noted that XRP’s value proposition revolves around cross-border payments, institutional rails, and regulatory positioning, while ADA’s thesis centers on smart contracts, ecosystem development, and long-term infrastructure growth.
“During bear cycles, institutional and regulatory narratives often carry more defensive weight than ecosystem growth promises, especially when speculative activity declines,” it added.
The last two categories mentioned in the subheading above also had the same winner. ChatGPT said ADA has historically experienced more extreme percentage declines from cycle tops, while XRP “tends to consolidate in tighter ranges during late-stage bear phases.”
In terms of community and holder behavior, ChatGPT’s answer was less obvious. It admitted that both have strong and vocal communities, but “ADA’s retail-heavy base can amplify panic selling.”
In contrast, XRP’s holder base has historically shown “stronger long-term holding behavior during legal and regulatory uncertainty periods.”
Consequently, OpenAI’s platform determined the following in a confirmed bear market:
However, it warned that if BTC continues to trend lower, neither of the aforementioned altcoins is immune to additional double-digit percentage declines.
