Does XRP, SOL or ADA belong in a US crypto reserve?

The US crypto industry finally got what it wanted when President Donald Trump announced plans to form a national crypto reserve on March 2. But instead of celebration, the decision sparked backlash — not from the usual suspects in traditional finance or regulators but from within the crypto world itself.

The controversy arises from the selection of assets in the reserve. During his election campaign, Trump pledged to create a “national Bitcoin stockpile,” making the inclusion of Bitcoin (BTC) — and, to some extent, Ether (ETH) — expected. However, the addition of XRP (XRP), Solana (SOL) and Cardano (ADA) has divided the industry.

These three assets carry baggage, ranging from centralization concerns to doubts about real-world adoption. Proponents highlight their technological advancements and market potential, but skeptics argue they lack the stability, institutional trust and global acceptance needed for a national reserve.

The excitement surrounding the announcement was short-lived. All five cryptocurrencies initially spiked in price but soon dropped to pre-announcement levels before recovering slightly at the time of writing. XRP and ADA stand out as exceptions, as they didn’t fall below their pre-announcement levels, though they also weren’t immune to severe volatility swings.

Each of the three selected altcoins brings something different to the table. Let’s break down why they might have been chosen, and why their inclusion is controversial.

Solana is fast and cheap but best known for memecoins

Ethereum leads in total value locked (TVL) in decentralized finance (DeFi), accounting for approximately 52% of the market with $50.59 billion, according to DefiLlama. This figure excludes its layer-2 networks, such as Base and Arbitrum, which serve as scaling solutions built atop Ethereum and remain part of its broader ecosystem.

Solana follows at a distant second with $7.32 billion in DeFi TVL. The network has long been labeled an “Ethereum killer,” a term used for blockchains aiming to challenge Ethereum’s dominance. Throughout 2024 and early 2025, Solana appeared to be gaining ground thanks to its high throughput, capable of handling thousands of transactions per second. 

Meanwhile, developers have largely resolved its once-chronic outage issues, allowing the network to capitalize on the mass traffic brought on by the memecoin boom.

Fund managers applied for SOL-based exchange-traded funds (ETFs), and the network became a preferred platform for political figures launching or endorsing cryptocurrency projects — primarily through memecoins.

Recently, Solana’s memecoin boom turned chaotic. Sensationalized livestreaming events designed to pump token prices alongside widespread scams, rug pulls and bot-driven trading have raised concerns about the sector’s sustainability. The number of new token launches on Solana continues to decline as skepticism grows.

Influential voices have raised their concerns about Solana’s venture capital influence. National Security Agency whistleblower Edward Snowden called out Solana’s reliance on venture capital in November, suggesting it compromises the network’s decentralization. He described Solana as “born in prison,” implying that its dependence on VC funding could limit its autonomy and alignment with blockchain’s foundational principles.

Related: Is crypto’s ‘Trump effect’ short-lived?

“These assets, like any other tokens, don’t function as true reserve assets. Adding them to a US crypto reserve would be as arbitrary as including Nvidia stock in a strategic reserve,” Georgii Verbitskii, founder of TYMIO, told Cointelegraph.

“While sovereign wealth funds, like Norway’s, invest in equities for long-term returns, their purpose is different from that of a national reserve, which should be built on universally recognized, decentralized assets. Bitcoin is the only logical choice for such a reserve,” he added.

Slow and steady: Cardano still in the race

Cardano has adopted a slow and steady strategy. The network is often bashed for its sluggish rollout of features compared to other major blockchains, but its supporters believe its peer-reviewed, research-driven strategy will ultimately pay off. 

So far, however, this measured approach has left Cardano trailing behind in an industry that moves at breakneck speed. Users flock to chains where their funds feel secure or where they see the most profit potential — much like how Solana’s memecoin frenzy attracted mass attention — meaning Cardano has struggled to keep pace.

As of March 5, Cardano’s DeFi ecosystem holds just $412 million in TVL, according to DefiLlama. The network is often mocked as a “ghost chain,” meaning its onchain activity is minimal, which is often met with strong pushback from its supporters.

Data from Artemis shows that on March 4, Cardano recorded fewer than 40,000 daily active users, while Solana had over 5 million — though Solana has also been heavily scrutinized for rampant bot activities.

One key advantage Cardano holds over networks like Solana is decentralization. While the project initially relied heavily on IOHK, the private entity founded by Charles Hoskinson, it has since transitioned toward a community-driven model. January’s Plomin hard fork activated full decentralized governance mechanisms for ADA holders, followed by the establishment of its own onchain constitution in February.

According to the University of Edinburgh’s Decentralisation Index, Cardano ranked as the most decentralized blockchain in 2023. The network leads in the Nakamoto coefficient, a metric used to gauge decentralization by identifying the minimum number of entities required to control 51% of the network.

Big names use XRP, but centralization still an issue

XRP has a strong case for being included in the national crypto reserve, according to Vugar Usi Zade, chief operating officer of cryptocurrency exchange Bitget, who told Cointelegraph: “XRP is already a go-to for cross-border payments, with major financial institutions using it to streamline transactions.”

Compared to traditional financial systems, XRP offers faster, cheaper transactions for both financial institutions and individuals. Several major entities — including American Express, SBI and Siam Commercial Bank — have tested or integrated XRP into their cross-border payment solutions.

The network has long been criticized for being more centralized than cryptocurrencies like Bitcoin and Ether. One of the main reasons for this perception is that Ripple controls a significant portion of the XRP supply. When cryptocurrency was created, 100 billion coins were pre-mined, and as of March 5, over 37 billion tokens are still locked in escrow. 

That said, there are counterarguments against the centralization claims. Over time, Ripple has reduced its own validator presence, allowing third-party institutions to take on a larger role in the network’s validation process.

Additionally, XRP transactions do not require Ripple’s approval, as the network operates independently, with transactions settling in seconds. Ripple has also repeatedly emphasized its legal separation from the XRP Ledger, stating that it does not control XRP.

Related: Why is the Ripple SEC case still ongoing amid a sea of resolutions?

Bitcoin is the clear frontrunner, but even it has non-believers 

The three tokens — XRP, SOL and ADA — each come with their own strengths and drawbacks, but one characteristic they share is that they are home-grown American projects.

According to Bitget’s Zade:

“Let’s be honest: None of them have Bitcoin’s level of institutional trust or liquidity. That volatility could be a problem, especially for assets meant to be a stable part of a national reserve.”

While Bitcoin is the clear frontrunner for inclusion in the US strategic crypto reserve, some argue that even Bitcoin carries significant risks. Its value is entirely speculative, and its role as a reserve asset could make it a prime target for adversarial nations, Joshua Chu, co-chair of the Hong Kong Web3 Association, argued.

“If quantum computing becomes a reality, it could break Bitcoin’s cryptographic security, rendering it worthless overnight,” he told Cointelegraph. “This is a real risk, given how quickly technology evolves. What happens if adversarial nations like China or Russia develop quantum computing capabilities and decide to target Bitcoin?”

Although Trump’s crypto reserve plan has been announced, it still requires congressional approval before becoming official policy. Meanwhile, speculation is mounting that more details will be revealed during the crypto summit at the White House on March 7.

Key figures, including Ripple CEO Brad Garlinghouse and Strategy executive chairman Michael Saylor, have been invited to attend, signaling that the event could provide further insights into the administration’s digital asset strategy.

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