Ripple’s XRP has surged an impressive 433% since November, positioning itself to potentially overtake Ethereum in market capitalization. This week alone, XRP experienced a notable rally, climbing 22%, which has led several crypto influencers to posit that it may soon surpass Ethereum.
Currently, Ethereum’s price sits at $3,203, while XRP is trading at $2.83. To flip Ethereum’s market value, XRP would need to reach $6.75, a 138% increase from its current valuation. DonAlt, a well-known crypto trader with a significant following on social media, expressed confidence that XRP could temporarily outpace both Ethereum and even Bitcoin if market conditions favor such a shift.
Despite XRP’s current market value being approximately $164 billion—less than half of Ethereum’s $397 billion—there is momentum behind this speculation. Notably, since November, XRP has greatly outperformed Ethereum, which has only seen a 27% rise during the same period.
XRP’s market capitalization overtook Tether earlier this year, marking it as the third-largest cryptocurrency. A potential flip of Ethereum would represent a significant shift in the crypto landscape and compound the challenges facing Ethereum.
Several factors have contributed to XRP’s upward trajectory, including the possible resignation of SEC Chair Gary Gensler. His departure, alongside advancements in Ripple’s ongoing legal struggles with the SEC, could yield favorable outcomes for the company. Analysts suggest that if the SEC opts not to appeal their case against Ripple, it could represent a substantial win for the firm.
Additionally, Ripple has ramped up its hiring efforts in the U.S., with CEO Brad Garlinghouse indicating that recent business activity has far outpaced the previous six months. He believes that the anticipated crypto-friendly regulatory approach from the incoming administration could further catalyze growth in the industry.
Furthermore, interest in XRP is on the rise, as evidenced by Google search trends where XRP surpassed Bitcoin for the first time. However, there are cautions to consider; a recent note from JPMorgan suggested that the demand for a potential XRP exchange-traded fund (ETF) may not meet bullish expectations, estimating that such an ETF could attract around $8 billion in investment—a fraction compared to Bitcoin and Ethereum ETFs.
In the overall market performance, Bitcoin recorded a 3% increase, reaching $99,205, while Ethereum also rose by 3% to $3,304.
Overall, this moment in the cryptocurrency market signifies an exciting time for XRP, reflecting both optimism for Ripple’s future and the evolving dynamics within the crypto ecosystem. Whether XRP can sustain this momentum to challenge Ethereum remains to be seen, but it clearly has captured investor attention like never before.