On the planet of digital property investing, XRP and Solana (SOL) are the third and sixth largest cryptocurrencies by market capitalization after bitcoin and ether.1 Market members with present publicity to bitcoin and ether can look to XRP and Solana to diversify their return sources and handle danger.
Conventional diversification rules apply to crypto investing, through which much less correlated property can cushion the portfolio from hostile worth actions. The correlation matrix among the many 4 property highlights that XRP, particularly, has pretty low correlations to bitcoin, ether and SOL.
|
|
XRP |
SOL |
ETH |
BTC |
|---|---|---|---|---|
|
XRP |
1.0000 |
|
|
|
|
SOL |
0.5506 |
1.0000 |
|
|
|
ETH |
0.5665 |
0.6780 |
1.0000 |
|
|
BTC |
0.5525 |
0.7522 |
0.7620 |
1.0000 |
Supply: Correlation based mostly on every day logarithmic returns from CF Benchmarks Charge publications from Jan. 2, 2024 by means of September 12, 2025.
Threat and returns are usually linear among the many 4 cash, with increased returns accompanied by increased volatility. XRP and SOL typically supply increased potential returns however include increased volatility in comparison with BTC and ETH. BTC seems to be essentially the most secure choice, whereas ETH strikes a steadiness between danger and return.
Particularly:
-
XRP has the best common every day return (0.52%) among the many 4 cryptocurrencies. Correspondingly, it reveals increased customary deviation (5.89%) than BTC, ETH and SOL.
-
SOL has the second highest customary deviation of every day returns (5.13%), suggesting it is among the most risky property of the group. Its imply every day return (0.32%) is increased than ETH and BTC, however decrease than XRP.
-
ETH has a average imply every day return (0.24%) and a decrease customary deviation of every day returns (4.10%) in comparison with XRP and SOL, indicating a extra barely secure profile.
-
BTC has the bottom customary deviation of every day returns (2.91%), making it the least risky asset on this comparability. Correspondingly, BTC (0.27%) has the bottom every day common returns among the many 4.
|
Cryptocurrency |
Common Day by day Return |
Customary Deviation of Day by day Returns (Volatility) |
Threat/Reward Ratio |
|---|---|---|---|
|
XRP |
0.52% |
5.89% |
0.088 |
|
SOL |
0.32% |
5.14% |
0.062 |
|
ETH |
0.24% |
4.10% |
0.058 |
|
BTC |
0.27% |
2.91% |
0.092 |
Supply: CME Group. Information from Jan. 2, 2024 – Sept. 12, 2025
For market members with present publicity to bitcoin and ether, these new futures supply an efficient means to diversify returns and handle danger. To satisfy the market’s wants for extra coin exposures, CME Group launched large-sized futures and smaller-sized Micro futures on SOL and XRP in March and Might 2025, respectively, to enhance the present Bitcoin futures and Ether futures product suite.
