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Competition Between XRP and LINK: The SEC-backed contest you should pay attention to

Cryptocurrency XRP falters near the $3 mark amidst SEC settlement support, contrasting the soaring Chainlink as it gains momentum from sophisticated investor interest and compliant regulatory framework.

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Competition between XRP and LINK: A judiciously overlooked investment choice, strongly supported by...
Competition between XRP and LINK: A judiciously overlooked investment choice, strongly supported by the SEC

In a significant development for the cryptocurrency market, Chainlink (LINK) has printed a decisive +42% monthly candle, marking its largest structural breakout since 2020. This move positions Chainlink as a regulatory-friendly, SEC-aligned play compared to Ripple (XRP).

Chainlink's regulatory-friendly image is evident in several recent developments. In August 2025, Bitwise Asset Management filed an S-1 registration with the SEC to launch the first US spot Chainlink ETF. This ETF would offer regulated exposure to LINK without requiring direct custody, with Coinbase Custody Trust Company as the custodian and tracking the CME CF Chainlink–Dollar Reference Rate as a reliable benchmark price. This move mirrors earlier SEC approvals for Bitcoin and Ethereum ETFs, representing a significant step toward mainstream institutional adoption of Chainlink.

Chainlink Labs has also joined the SEC’s Crypto Task Force to help build regulatory frameworks for compliant tokenization and digital asset innovation. This direct regulatory engagement aligns Chainlink with SEC efforts to create clear, standardized regimes for blockchain assets, differentiating it from Ripple, which has been embroiled in prolonged legal battles with the SEC.

The White House’s 2025 Digital Asset Report highlighted Chainlink oracles as vital infrastructure supporting stablecoin and tokenized real-world asset innovation, reinforcing the protocol’s role in regulatory-compliant adoption and U.S. leadership in blockchain technology.

In contrast, Ripple (XRP) faces ongoing regulatory scrutiny and delayed ETF approvals, with the SEC decision on Ripple’s ETF application postponed to October 2025, suggesting comparatively more regulatory friction.

Chainlink's dominance in the DeFi sector is also evident. The protocol now has nearly $10 billion in DeFi TVS, pushing the sector to a three-year high. By mid-August 2025, the total capital in DeFi protocols relying on Chainlink's oracles hit $60+ billion. There is a sharp divergence in capital flows away from Ripple and into Chainlink.

The LINK/XRP breakout is not purely technical, but is driven by smart money inflows, structural momentum, and on-chain FOMO. Chainlink (LINK) has outperformed with a near 50% move to $24, while Ripple (XRP) has only seen a 0.13% increase from its $3.02 open in August, despite favourable conditions.

Whales have transferred approximately $56 million into Chainlink (LINK), further highlighting the protocol's appeal to smart money. Chainlink's oracle network controls 68% of the oracle market, making it the sector's standard. Unlike traditional TVL, Chainlink tracks Total Value Secured (TVS), which is the total capital in DeFi protocols relying on its oracles.

Chainlink's oracle network is seen as far more "regulatory-friendly" compared to XRPL. XRPL's DeFi TVL clocked in at just $90+ million, a 700× gap showing why Chainlink dominates as the default DeFi data layer.

As Chainlink continues to capture smart money in the DeFi sector, the question arises whether it is now the superior Securities and Exchange Commission (SEC)-aligned play. By subscribing to the daily newsletter, readers can stay updated on the latest news and analysis in the crypto market.

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