XRP’s Surge Fuels Speculation of Overtaking Ethereum

XRP has surged by 22% this week, sparking fresh speculation that it could challenge Ethereum's position as the second-largest cryptocurrency by market cap.

For XRP to surpass Ethereum’s $397 billion valuation, it would need to hit $6.75 per token, a significant jump from its current price of $2.94.

This isn’t the first time XRP has been in contention. In 2018, it briefly overtook Ethereum during a market boom. Recent momentum has seen XRP climb to third place, overtaking Tether (USDT), with a 433% rise since November—far outpacing Ethereum’s modest 27% gain.

Several factors are driving this rally. Optimism surrounding a potential resolution to Ripple’s legal battle with the SEC, following anticipated leadership changes, has boosted investor confidence. Ripple’s CEO, Brad Garlinghouse, has also highlighted increased activity in the U.S., fueled by hopes for more crypto-friendly policies under the new administration.

Despite the bullish sentiment, analysts at JPMorgan remain cautious, predicting that demand for an XRP ETF may not match the success seen with Bitcoin and Ethereum ETFs. While XRP’s rapid ascent rekindles debates about its potential to surpass Ethereum, its long-term position will depend on market conditions and regulatory outcomes.