XRP Eyes Ethereum’s Second Spot After Soaring Past $1, Stuns Cardano (ADA) and Dogecoin (DOGE)

With XRP soaring past $1 ahead of Cardano and Dogecoin, discussions have emerged regarding whether it could challenge Ethereum as the second-largest crypto asset.

As XRP surges past $1, leaving Cardano and Dogecoin behind, speculations have arisen regarding its potential to challenge Ethereum for the second-largest crypto asset position.

Before the recent surge, the crypto community engaged in discussions about which asset among XRP, ADA, and DOGE would first reach the $1 mark. While both XRP and ADA had previously traded above $1, they both fell below this level due to a broader sell-off following the 2021 bull run.

Despite ADA and DOGE experiencing significant upticks recently, XRP remained hovering around the $0.57 mark for several days, leading to DOGE's rise in the global crypto ranking to the eighth position, pushing XRP down.

However, the narrative shifted following reports of Ripple CEO Brad Garlinghouse meeting with U.S. President-Elect Donald Trump, which sparked speculations of an impending resolution in the Ripple lawsuit. Amid these rumors, XRP rallied substantially, surging above $1 for the first time since 2021.

Since then, XRP has overtaken Dogecoin, solidifying its position as the sixth-largest cryptocurrency with a market cap of $62.2 billion.

Following XRP's impressive performance, there are speculations that it might be aiming to challenge Ethereum (ETH) for the second place.

In 2014, XRP was ranked as the second-largest cryptocurrency by market cap, trailing only Bitcoin. It maintained this position until Ethereum's launch the following year, which resulted in both assets vying closely for the second place.

However, Ethereum secured the second position definitively in June 2018 after former SEC Director William Hinman declared ETH a non-security. Two years later, the SEC's decision to charge Ripple with violating federal securities laws through its past XRP sales further disadvantaged XRP.

As a consequence, XRP slipped to the seventh position last year, and recently Dogecoin pushed the asset down to the eighth spot. But with the recent rally, XRP appears poised to once again challenge Ethereum for the second position.

XRP's potential ascent to the second position in the global crypto ranking would be a formidable undertaking. Currently, Ethereum is the second-largest cryptocurrency, with a market cap of $376.45 billion.

This implies that XRP's market cap must increase by 505.22% to reach ETH's $376.45 billion valuation. At a growth rate of this magnitude, XRP's price would rise to approximately $6.59 from the current level of $1.09, assuming the coin's circulating supply remains largely constant at 56.93 billion.

While XRP's surge to the $1 mark has certainly bolstered investors' confidence in the asset, challenging Ethereum for the second position necessitates the convergence of several initiatives, ranging from institutional adoption to regulatory clarity.

notably, XRP did receive the long-awaited clarity in July 2023 when a federal court ruled that it is not a security. Additionally, strong institutional demand for XRP is bound to follow should the U.S. SEC approve the launch of one or more ETFs tied to the asset.

Having said that, it remains to be seen whether XRP can challenge ETH for the second place in the global crypto ranking. XRP's future price actions will be pivotal in determining whether it can pose a threat to Ethereum.