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Which Crypto is Hedera Hashgraph’s Closest Competitor?

Which Crypto is Hedera Hashgraph’s Closest Competitor? AllinCrypto September 2, 2025

Although Hedera Hashgraph is not a typical blockchain, the distributed ledger still has a fair share of competitors when it comes to the network’s target audience.

Algorand (ALGO) and Ripple (XRP) are often seen as some of Hedera’s closest competitors in various circles, but not for the most obvious reasons.

Although distinctive in goals, XRP and HBAR commonly cross over when it comes to enterprise attention. For Algorand, the ALGO network is one of the most robust in the industry. Let’s explore how these networks compete or can work together in a multi-chain industry.

Hedera & Algorand: Scalability and Sustainability

Algorand has positioned itself as a sustainable blockchain with a focus on finance, tokenization, and decentralized applications.

The Algorand network, most notably, has never gone offline or suffered a network outage since its launch, proof of the network’s reliability.

Like Hedera, Algorand emphasizes energy efficiency, with both networks being carbon-negative and having near-instant transaction finality.

• Hedera uses a Hashgraph algorithm, a directed acyclic graph system that offers high throughput and scalability. Algorand uses Pure Proof-of-Stake (PPoS), randomly selecting validators to ensure decentralization and efficiency.
• Both networks are home to some of the lowest transaction fees in the market at fractions of a cent with finality in seconds, making them competitive choices for enterprises seeking scalable, low-cost infrastructure to build on.
• Hedera is governed by a council of corporations, including Google, IBM, and Arrow Electronics, which also run HBAR nodes.
  
  Algorand uses a community model where stakers and token holders participate in consensus and governance, a classical approach to decentralization. This difference highlights Hedera’s enterprise-first focus.
• Hedera has partnered with companies in global supply chains, tokenization, payments, and web3, while Algorand has found a niche with central bank digital currencies (CBDCs) and European government-backed initiatives that are integrating Algorand into EU-based businesses or companies using ALGO for their speed, such as FIFA, which utilized Algorand for NFTs.

Algorand could be Hedera’s closest technological rival, as both networks target high-performance, eco-friendly, enterprise-ready use cases.

Hedera & XRP: Enterprise Finance and Payments

While Algorand competes with Hedera on a more technology-driven level, Ripple’s XRP Ledger represents a different kind of competition centered on enterprise finance and payments.

• The XRP Ledger (XRPL) is optimized for fast, low-cost cross-border payments. While it lacks Hedera’s DAG architecture, which provides Hedera with more benefits, the XRPL excels in settlement times.
• Ripple Labs is focused on banking and financial institutions, positioning XRP as a bridge currency for international payments. Hedera is targeting supply chains, tokenization, payments, and DeFi applications with strong utility.
• XRP Ledger uses a network of independent validators. Hedera’s governing council model differentiates by formalizing enterprise participation in network decision-making.
• Ripple has faced major regulatory hurdles in the past with the SEC under Gary Gensler. With the case now over and the SEC now pro-crypto, Ripple has earned new favours in the US. Hedera, meanwhile, has positioned itself carefully from the beginning by following strict regulatory frameworks, emphasizing compliance and stability to appeal to enterprises.

Ripple’s strength lies fittingly in its global payments infrastructure and adoption among financial institutions, which overlaps with Hedera as a trusted platform for enterprise-level DLT solutions.

Comparing the Three Networks

While Hedera, Algorand, and XRP target similar real-world adoption and enterprise use cases, their strategies are different. Hedera is enterprise-first governance with broad use cases from payments to tokenization, AI and DeFi.

Algorand is rooted in open decentralization with a traction in business use cases and public-sector blockchain projects. For Ripple XRP, cross-border payments are the main focus, with the XRPL optimized for international finance.

All three networks emphasize speed, cost-efficiency, and sustainability, but they compete in slightly different niches of the enterprise blockchain market.

Hedera x ALGO x XRP: A Multi-Chain Future

Hedera Hashgraph’s unique Hashgraph consensus and corporate governance separate it from dozens of networks, but its closest competitors, such as Algorand or Ripple’s XRP, are not true competitors.

All three networks can co-exist in a multi-chain industry, with each network able to focus on what they do best and reach clientele in their respective categories.

Ultimately, any real competition won’t be decided by technical specs alone, but by which network can best succeed in building attractive ecosystems with real-world use cases.

The post Which Crypto is Hedera Hashgraph’s Closest Competitor? first appeared on AllinCrypto.

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