Can XRP overtake ETH from 2nd place by market cap?

Bittime - On Wednesday, XRP coin recorded a significant price spike, reaching $2.87 with an increase of almost 12% in the last 24 hours. With a market capitalization of $164 billion, XRP is now at 42.6% of the market cap against Ethereum (ETH), which is currently worth $385 billion.

The question is, does XRP have a chance to surpass ETH and take the second spot in the digital asset market capitalization ranking?

Although the difference in capitalization value is still quite large, XRP's positive momentum in recent months is a signal of optimism among investors. To surpass ETH, XRP would need to add $221 billion to its valuation, making the target price around $6.70 per coin, assuming the supply of XRP remains the same and ETH does not undergo significant changes.

Also read: XRP Transactions Top $1 Million in 24 Hours Ahead of Trump Inauguration

History of XRP in the Crypto World

XRP was once one of the largest digital assets by market capitalization. In 2013, XRP briefly held the second position before being overtaken by Litecoin (LTC) and then Ethereum (ETH).

Since then, XRP has struggled to get back to the top, especially during the bull run in 2017, where it reached an all-time high of $3.40.

However, even at its peak, XRP was not enough to rival ETH in terms of valuation. Now, with the development of its ecosystem and increased adoption across various financial sectors, XRP's growth potential continues to capture the attention of the crypto community.

XRP's Challenge to Displace ETH

While XRP has performed strongly, unseating Ethereum will not be easy. ETH has a broad ecosystem, with massive adoption in decentralized applications (dApps) and decentralized finance (DeFi). Meanwhile, XRP focuses more on cross-border payment solutions powered by Ripple Labs.

XRP's advantages, such as high transaction speed and low fees, are attractive to new users and partners. However, the limitation in the scope of its use cases compared to Ethereum is one of the main obstacles to seizing the second position.

Also read: XRP and Solana Rise Ahead of Trump Inauguration

Conclusion: Does XRP Have a Chance?

Although there is still a large gap between XRP coin and Ethereum, the potential for XRP to approach or even surpass ETH is not entirely impossible. Bullish momentum, continued ecosystem development, and increased adoption could be the driving factors.

However, to truly challenge Ethereum, XRP must show consistent growth and expand its scope of use beyond payment solutions. With the ever-increasing attention on XRP and changes in the crypto market, the XRP vs ETH competition will be one of the topics of interest in the future.

FAQ

Can XRP unseat Ethereum from second place by market capitalization?

To unseat Ethereum, XRP coin needs to add significant valuation to reach a market capitalization of over $385 billion. This would require XRP's price to surge to around $6.70 per coin, assuming Ethereum conditions remain stable.

What are the key differences between XRP and Ethereum?

XRP is designed to facilitate cross-border payments quickly and at low cost, while Ethereum has a broad ecosystem, supporting decentralized applications (dApps) and decentralized finance (DeFi).

What are the advantages of XRP over Ethereum?

XRP's advantages are high transaction speeds and low fees, making it well suited for international transfers. However, Ethereum excels in flexibility and adoption in various blockchain-based projects.

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References

news.bitcoin.com, XRP Inches Closer to Overtaking Ethereum-A New Crypto King in the Making?, accessed on January 20, 2025.

Author: AWW