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As of this writing, XRP is trading at $2.87 per unit, up almost 12% in the last day after reaching an intraday high of $2.895 on Wednesday. The cryptocurrency asset, which currently holds 42.6% of Ethereum’s market capitalization, is gradually catching up to ETH.
As XRP Gains Ground, Ethereum's Dominance Is in Danger
The potential for ethereum (ETH) to overtake bitcoin (BTC) or solana (SOL) to overtake ethereum has been a common topic of discussion in the cryptocurrency world in recent years. Neither scenario has come to pass, despite the conjecture. But XRP seems to be making headway in its attempt to unseat ETH as the market leader.
With its current price of $2.87 over the last hour, XRP has a $164 billion market capitalization, whereas Ethereum (ETH) is valued at $385 billion. At 42.6% of ETH’s market capitalization, XRP would need to rise by $221 billion in order to overtake ETH. With 57,493,120,449 XRP in circulation at the moment, the cryptocurrency is trading about 18% below its peak value.
On January 7, 2017, about seven years ago, the price of XRP peaked at $3.40 per coin. But even at that price, XRP wouldn’t be able to surpass ETH. To take the top rank, XRP would need to increase by 133.5% versus the US dollar, assuming that both the price and supply of Ethereum remains the same and that XRP’s supply stays the same. As a result, XRP would be valued at about $6.70 per coin.
Notably, before tether (USDT) and ethereum (ETH) rose to prominence, XRP was the second-largest cryptocurrency by market capitalization. At a worth of $47.71 million at the end of August 2013, XRP was in third place. With a market valuation of $100.59 on September 22, 2013, it has risen to the second spot.
But by the conclusion of the 2013 bull market, Litecoin (LTC) had surpassed XRP, a position it maintained well into 2014. Only in October 2014 did XRP regain its position as the second most valuable cryptocurrency, with a market value of $138.81 million at a price of $0.004789 per coin. With Ethereum’s ascent and the ensuing boom in 2016–2017, XRP lost its second-place ranking once more and hasn’t reclaimed it. XRP was worth less than one US penny for the majority of its early years.
Although there are still obstacles to overcome, XRP’s consistent rise toward Ethereum’s market capitalization shows its expanding potential. Even though it could still take a lot of growth to reach ETH’s worth, XRP’s continued progress indicates that the race at the top may get more fierce. Investors and analysts will probably continue to be quite interested in XRP’s standing as the cryptocurrency industry develops.
FAQ
XRP’s recent price surge and its increasing market capitalization have drawn attention. Its transaction efficiency, growing adoption, and investor confidence contribute to its momentum. As it closes the gap with Ethereum, XRP’s potential to challenge ETH’s dominance is becoming a hot topic.
Currently, XRP has a market capitalization of $164 billion, which is 42.6% of Ethereum’s $385 billion. To surpass Ethereum, XRP would need to increase its value by $221 billion, requiring its price to reach approximately $6.70 per coin, assuming the circulating supplies remain constant.
Yes, XRP was once the second-largest cryptocurrency by market capitalization in 2013 and again in 2014. However, with Ethereum’s rise during the 2016-2017 crypto boom, XRP lost its position and has yet to reclaim it.
XRP faces several challenges, including its 18% lower trading price compared to its all-time high, market competition, regulatory scrutiny, and Ethereum’s entrenched dominance in the cryptocurrency and decentralized finance (DeFi) sectors.
XRP’s growth indicates increasing competition among leading cryptocurrencies, potentially driving innovation and adoption. It also highlights shifting investor sentiment and the possibility of more dynamic rankings in the crypto ecosystem.