XRP Could Overtake Ether with ETF Approval and Ledger Integration Boost
By Crispus Nyaga
April 11, 2025, at 5:46 PM UTC
Edited by Jayson Derrick
In the competitive world of cryptocurrency, XRP is positioned to potentially surpass Ethereum (ETH) in market capitalization as key developments unfold. Following the conclusion of its SEC litigation, XRP has experienced fluctuations in its price and market cap. As of Friday, XRP is trading at $2, reflecting a 41% drop from its earlier peak this year, resulting in a decrease in its market cap from $190 billion to $118 billion. In contrast, Ethereum has witnessed a staggering 61% price decline over the same period.
Market Dynamics Favor XRP
The narrowing market cap gap between XRP and Ethereum has become a focal point for investors, shrinking to approximately $45 billion. Analysts foresee a range of catalysts that could propel XRP beyond Ethereum, particularly in the wake of rising expectations for ETF (Exchange Traded Fund) approvals and enhancements to the XRP Ledger network.
XRP Ledger Growth Prospects
The XRP Ledger represents a decentralized, open-source network engineered for quick and cost-effective transactions. Ripple Labs, the parent company of XRP, has made notable strides in advancing this ecosystem. Recently, Ripple Labs announced a significant acquisition of Hidden Road for $1.25 billion, a move that could drastically increase the transaction volume on the XRP Ledger. Hidden Road handles over $10 billion in daily volume, and migrating this infrastructure to the XRP Ledger can bolster its standing in the crypto landscape.
Brad Garlinghouse, CEO of Ripple, has articulated his ambitions for Ripple to rival traditional payment networks like SWIFT, which processes more than $150 trillion annually. With the SEC case now resolved, Garlinghouse asserts that Ripple’s technology is more efficient and cost-effective than current solutions, potentially leading to increased XRP Ledger adoption and sustained price growth.
Amid these advancements, Ethereum appears to grapple with stagnation, as its core network faces challenges and a growing dependency on various layer-2 solutions for greater efficiency.
Potential Ripple from XRP ETF Approval
Another key factor that could significantly benefit XRP is the anticipated approval of an XRP ETF by the Securities and Exchange Commission (SEC). Current market speculation, as reflected on platforms like Polymarket, suggests a 76% probability of such approval. A successful ETF launch for XRP could unleash a wave of institutional investment, with analysts at JPMorgan estimating potential inflows of up to $8 billion during the first year post-approval.
To contextualize this potential impact, Ethereum’s own spot ETFs have recorded merely $2.6 billion in inflows since September, alongside increasing outflows, which positions XRP favorably in the race for institutional interest.
Technical Analysis: Supporting Trends for XRP
From a technical standpoint, the indicators for XRP present a more optimistic outlook than for Ethereum. XRP is currently displaying constructive technical signals, hovering just above key moving averages and forming a cup and handle pattern on its weekly chart. This pattern is traditionally regarded as a bullish signal, suggesting the potential for a price rebound.
If momentum sustains, XRP could aim to retest its year-to-date high of $3.4, and, should it breach this level, it may escalate toward $3.70 and eventually reach targets around the $5 mark.
As XRP ventures further into this pivotal phase, it stands at the threshold of potentially overtaking Ethereum, influenced by a combination of strategic acquisitions and favorable market sentiment surrounding ETF approvals. Investors and market analysts alike will be keenly monitoring these developments as they unfold in the dynamic landscape of cryptocurrency.
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