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A cryptocurrency to buy before it skyrockets and surpasses Ethereum’s market capitalization
The development of Ripple is expanding the use cases of the $XRP Ledger, one of the most popular blockchains, along with its native cryptocurrency $XRP.
- The growing adoption of this alternative blockchain may drive the price of its native token higher.
- New ETFs are showing strong performance, but they could significantly increase capital inflows.
- Some factors still limit downside, but the token’s long-term potential remains high.
Ethereum has long been the second-largest cryptocurrency by market capitalization after Bitcoin. Its blockchain builds on Bitcoin’s concept by introducing smart contracts and operates using its native token, Ether.
Since then, many other companies have introduced their own blockchains and tokens optimized for specific applications. One of the most successful is the $XRP Ledger by Ripple. It is designed to enable fast and low-cost financial transfers, and Ripple has spent years promoting its adoption among banks and financial institutions. Each transaction requires a small amount of $XRP—less than one cent. It can also serve as a bridge currency for cross-border payments.
Ripple CEO Brad Garlinghouse recently suggested that $XRP could surpass Ether and become the second-largest digital asset due to growing blockchain adoption. Despite his clear bias, there are reasons to remain optimistic about $XRP.
Ripple is making major moves.
The company is growing rapidly through technological innovation, but mainly through acquisitions. It acquired Hidden Road, a clearing and brokerage firm, for $1.25 billion. It also bought treasury management platform GTreasury for another $1 billion and strengthened its position in stablecoins through Rail. Ripple is positioning itself to handle nearly any financial institution use case, aiming to accelerate blockchain adoption.
Several trends could further support adoption, including tokenization of real-world assets; use of stablecoins such as Ripple’s $RLUSD; increased regulatory clarity; and practical support for blockchain technology from the SEC (which previously sued Ripple).
$XRP is well positioned to benefit from these trends due to its real utility tied to Ripple and the XRP Ledger. If Ripple successfully scales activity on its blockchain, demand for $XRP should increase. While this gradually dilutes supply, growing usage may offset dilution since XRP is burned with each transaction.
Can $XRP really surpass Ethereum?
Currently, $XRP is the fourth-largest cryptocurrency with a market cap of about $88 billion. Ethereum’s market cap is roughly $282 billion. This means XRP would need to exceed $4.58 per token to overtake Ethereum (assuming ETH price remains unchanged, which is unlikely).
One additional growth factor is increasing adoption of spot ETFs. XRP ETFs launched last November and have attracted strong interest, surpassing $1 billion in inflows.
However, this is still far behind Ethereum ETFs, which have attracted nearly $12 billion. This suggests institutional investors may continue accumulating XRP through ETFs, potentially reducing circulating supply and boosting price.
While there are many bullish arguments, some factors still limit growth. Ripple is building infrastructure for broader adoption, but execution is still ongoing. Additionally, introducing $RLUSD as a bridge currency may reduce XRP’s role in liquidity provision.
Finally, selling pressure from existing holders—many still at a loss—remains a barrier. For price to rise significantly, buyers must absorb this supply.
The long-term potential of $XRP remains high. Whether it surpasses Ethereum is largely beyond investor control. However, at current levels, it appears worth holding.
See also: "Bitcoin bullish sentiment index reaches six-month high: a bear market trap?"
