XRP May Overtake Ethereum Amid ETF Approvals and Ledger Growth
By Crispus Nyaga | April 11, 2025
In the ever-evolving landscape of cryptocurrency, XRP appears to be positioning itself as a potential rival to Ethereum (ETH), particularly in light of recent developments that could catalyze significant price movements. Despite a notable drop in momentum this year—XRP was trading at $2 on Friday, a substantial fall of 41% from its peak earlier this year, which saw its market capitalization decrease from $190 billion to $118 billion—market analysts remain optimistic about XRP’s potential to surpass Ethereum.
Current Market Trends
Both cryptocurrencies have recently faced downturns, with Ethereum witnessing a staggering 61% price decline. Market dynamics reveal a narrowing gap between the market caps of XRP and Ethereum, sitting at approximately $45 billion. Analysts speculate that Ether could even dip below the $1,000 mark this year, raising the stakes for XRP to take a lead in the market.
Key Catalysts for XRP Growth
Several factors could act as catalysts for XRP’s growth and potentially allow it to flip Ethereum in market valuation:
1. XRP Ledger Expansion
One significant driver of XRP’s potential growth is the advancement of the XRP Ledger, a decentralized and open-source platform known for facilitating fast and low-cost transactions. Ripple Labs, the company behind XRP, has made substantial moves to bolster the XRP Ledger’s capabilities. Recently, it acquired Hidden Road for $1.25 billion, a move that is expected to integrate Hidden Road’s processing infrastructure—handling over $10 billion in daily volume—into the XRP Ledger. This integration could significantly increase transaction activity within the network, enhancing its standing in the competitive crypto industry.
Brad Garlinghouse, CEO of Ripple Labs, has articulated a vision for the company to rival SWIFT, the leading global payments network, which processes over $150 trillion annually. With the conclusion of the SEC case against Ripple, the company aims to disrupt traditional payment solutions, escalating the activity and adoption of the XRP Ledger.
2. Prospects of an XRP ETF Approval
Another considerable factor influencing market sentiment is the possibility of an XRP Exchange-Traded Fund (ETF) approval by the Securities and Exchange Commission (SEC). Predictions on Polymarket show a 76% likelihood of approval, indicating strong market confidence. If approved, this ETF could attract a significant influx of institutional investment, with JPMorgan analysts estimating potential inflows of up to $8 billion in its first year, a remarkable contrast to the $2.6 billion seen in spot Ethereum ETFs since last September, which have faced increasing outflows.
Technical Analysis Favoring XRP
Current technical indicators also favor XRP’s potential rebound. While Ethereum’s chart exhibits concerning patterns, including a triple top and a death cross—which often signal further declines—in contrast, XRP has shown resilience. It has rebounded from the $2 level, which aligns with the upper edge of a bullish cup and handle pattern, hinting at possible upward momentum. Moreover, XRP maintains a position above its 50-week and 100-week moving averages—key indicators of long-term bullish trends.
Looking ahead, if XRP continues its current trajectory, analysts speculate it could retest its year-to-date high of $3.4, with aspirations to reach $3.70, and potentially $5 in the long term as market conditions evolve.
Conclusion
As the cryptocurrency market continues to react to external pressures and internal developments, XRP’s future could hinge on these pivotal factors. Increasing utilization of the XRP Ledger alongside potential ETF approval may create a suitable environment for XRP to not just catch up to, but potentially overtake Ethereum in market capitalization. Investors and observers alike will be keenly watching these developments in the coming months, as the competition between these two major cryptocurrencies intensifies.
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