XRP is making waves in the crypto ocean, reaching a five-year high against Ethereum (ETH) and sparking chatter about a potential flippening. Over the weekend, XRP/ETH hit 0.00128 ETH, a level not seen since April 2020. This marks a staggering 925% rebound from its all-time low in June 2024 and a 620% surge since Trump’s election victory in November 2024.
Crypto enthusiasts are buzzing with speculation that XRP might just dethrone Ethereum as the second-largest cryptocurrency by market cap. Analyst Dom points out that the 0.0012 ETH mark has historically been a launchpad for XRP, leading to explosive rallies of at least 160% in past cycles. As XRP tests this critical level again, even an 80% rally could see it surpass ETH, especially with Ethereum facing potential price dips in 2025.
Currently, XRP’s market cap stands at $138 billion, just shy of Ethereum’s by less than $100 billion. Intriguingly, XRP’s fully diluted valuation (FDV) briefly overtook Ethereum’s earlier this week. FDV considers the total value of all tokens, including those not yet in circulation, while market cap only accounts for circulating tokens.
So why is Ethereum lagging behind? Since Trump’s reelection, XRP’s market dominance has soared over 300%, while Ethereum has lost over 35% of its market share. The shift is partly due to regulatory sentiment, with Trump positioning the US as a crypto-friendly hub and appointing pro-crypto regulators. This environment has favored XRP, especially as Ripple unveils its institutional DeFi roadmap.
Meanwhile, Ethereum faces stiff competition from Solana (SOL) and other layer-1 blockchains. Despite Ethereum’s Dencun upgrade slashing transaction fees by 95%, it has inadvertently increased supply and weakened ETH’s deflationary appeal. Solana’s rise, with its faster and cheaper transactions, is attracting DeFi activity and memecoin trading that once belonged to Ethereum.
As Solana’s dominance grows, Ethereum’s market share continues to erode, particularly among traders and developers seeking high-speed, low-cost transactions. With XRP gaining momentum and Ethereum facing challenges, the crypto landscape is ripe for a shake-up. Could XRP be the next big thing? Only time will tell.
Remember, this article isn’t investment advice. Always do your own research before making any trading decisions.
