Smart Investments: What’s Next After Cardano’s 30% Jump?
Brief Overview
Cardano’s impressive 30% rise this week results from a singular test transaction on the x402 platform and a short squeeze, lacking any solid proof of actual market adoption.
XRP has already processed 1.4 million payments made by AI agents through the x402 standard and currently maintains $1.4 billion in U.S. ETFs, experiencing only a 10% decline in 2026.
For Cardano to sustain its recent gains, it must soon implement x402 payments on the mainnet with genuine transaction activity, or risk undoing its entire 30% uplift.
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Cardano (CRYPTO:ADA) witnessed a 29.9% hike in value for the week concluding on September 23, 2026, climbing from $0.20 to $0.25. In parallel, XRP (CRYPTO:XRP) surged 22%, reaching $1.58. As Cardano commands attention with this notable rise, investors are left contemplating whether XRP or Cardano represents the superior investment option.
Nonetheless, both cryptocurrencies remain in negative territory so far in 2026. Cardano has seen a decline of 23.5%, whereas XRP is down 13.9%. Thus, while a week of gains is positive, it does not alter their overall yearly performance. With Cardano’s 30% hike, which of the two coins represents a better investment, and what factors could affect this evaluation?
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The 30% Rise of Cardano: Driven by AI Payment Trials and Short Squeeze
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The recent jump in Cardano’s value can be attributed to its advancements in payment technology. The platform has adopted x402, an open standard that allows software and AI agents to execute payments for services via a simple web request. This announcement was made by the Cardano Foundation on September 21. Consequently, AI agents can now use ADA or a Cardano stablecoin for data requests without requiring an account or API key.
However, Cardano’s payment system has only carried out one transaction on its testing network where the coins lack real value. While developers can utilize this feature, AI agents have yet to initiate payments using ADA.
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The surge in Cardano’s value was further propelled by a short squeeze. Traders who had taken short positions against ADA were compelled to buy back shares as prices climbed, intensifying the upward momentum. Such forced buying continues until all short positions are settled.
XRP Already Processes AI Payments Unlike Cardano’s Testing Phase
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In contrast, the XRP Ledger has been efficiently handling AI-agent transactions utilizing the x402 standard for a while. Over 1.4 million transactions have been completed on this ledger, surpassing the 1 million mark by July.
Cardano finds itself at a disadvantage compared to established networks like Base and Solana, where Coinbase, the creator of x402, reported over 100 million payments processed since the standard’s introduction in 2025.
Therefore, while Cardano’s recent surge is built on a feature only in testing, XRP already has a solid transaction infrastructure in place, making it a more reliable option currently. For Cardano to maintain its momentum, it must promptly implement its payment system on the mainnet. Any delay could erase this 30% increase.
XRP’s Lesser Decline in 2026, Plus $1.4 Billion Held by U.S. Funds
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In 2026, XRP has seen a decline of 13.9%, while Cardano has faced a more significant drop of 23.5%. This indicates that an investor who opted for XRP in January has endured approximately 10% less loss compared to those who invested in Cardano. Additionally, XRP is experiencing strong institutional interest, particularly in the U.S., where spot XRP ETFs have accumulated about $1.71 billion since their November 2025 inception, holding around $1.4 billion of XRP itself.
XRP’s recent performance has also been bolstered by a short squeeze, with exchanges liquidating approximately $300 million in short positions within a single hour on September 21. Prior to this event, XRP had one of the highest concentrations of short positions among leading cryptocurrencies.
While the recent launch of contracts on the Moscow Exchange on September 22 may appear beneficial for XRP, it’s important to highlight that these contracts settle in rubles and do not involve actual purchases or holdings of XRP. Moreover, the exchange has set the margin at 43%, categorizing XRP as the most high-risk option among the five listed cryptocurrencies.
Which Investment Is Better: XRP vs. Cardano?
Considering the latest information, XRP currently seems to be the more advantageous investment as of September 23. It is already conducting AI-agent payments that Cardano is merely testing, has experienced a smaller decline in 2026, and possesses $1.4 billion invested by U.S. funds. Despite Cardano’s remarkable 30% rise, it is mainly attributed to a test transaction and a short squeeze, both of which are temporary in nature.
Nevertheless, it’s crucial to recognize that while XRP benefits from institutional support, its recent rise is also linked to a short squeeze. If Cardano is able to successfully execute its x402 payments on the mainnet and demonstrate real transaction activity by the end of the year, it may enhance investor confidence. Conversely, if XRP falls below $1.30, its initial position at the start of the week, it could reduce its advantage and weaken its attractiveness as an investment.
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