XRP Might Surpass Ethereum in Valuation Within the Next Month, Analyst Suggests

Sam Ruskin, an analyst at blockchain research firm Messari, suggested that XRP might surpass Ethereum in valuation within the next month.

An analyst at blockchain research firm Messari has suggested that XRP might surpass Ethereum in valuation within the next month.

According to Sam Ruskin, several converging factors could contribute to this potential milestone. Among them are heightened market enthusiasm, political developments, and an increased focus on OG cryptocurrencies, dubbed “boomer coins” or “dino coins”.

Ruskin noted that XRP has performed extremely well, up 460% since the U.S. presidential election on Nov. 5, 2024. He identified a strong correlation between market sentiment and external events such as Donald Trump’s re-election.

“The inauguration could spark a large buying event for XRP, similar to the post-election rally of 2016,” Ruskin said in a post on X called, The Case for XRP Flipping ETH.

This surge has positioned XRP as a favorite among retail and institutional investors alike, especially with rising speculation about the approval of an XRP exchange-traded fund (ETF) in the U.S. under the new administration.

Ruskin also highlighted that new U.S. tax regulations, which may benefit domestic crypto projects, could further drive investment in XRP.

While XRP gains traction,彙集鏈 (CRYPTO: ETH) appears to be grappling with headwinds. Ruskin noted that ETH is still 30% below its all-time high of $4,800, despite record levels of open interest.

“The disconnect here is a sign of weak investor demand and internal problems in the Ethereum ecosystem, such as community splits and competition from new blockchain networks,” he said.

The recent Trump Meme Coin launch on Solana (SOL) caused Solana to skyrocket 15% overnight, but tanked ETH, with Solana now the token launch network of choice for the wider market.

In contrast, XRP demonstrates a strong alignment between price movement and open interest, signaling greater market conviction. According to Ruskin, this dynamic could lead to a 35–50% price increase for XRP in the months following Trump’s presidency, bringing its market cap closer to ETH’s $415 billion valuation.

Recently, XRP came close to breaking its all-time high price of $3.40, set in January 2018. On Thursday, it peaked at $3.38, a 45% jump over the last week. The rally puts the spotlight certainly on XRP, which is up 560% since Election Day.

Outperforming BNB, SOL, and USDT in terms of market capitalization growth, XRP is now the third-largest cryptocurrency by market cap.

“This impressive rally has not gone unnoticed by Ripple, which is considering several strategic moves to capitalize on the momentum,” a company spokesperson said, regarding rumors of XRP being included in an American Crypto Reserve.

Brad Garlinghouse, CEO of Ripple, is leading from the front with this momentum. With more than $143 billion worth of XRP held by Ripple, the firm is wasting no time in considering acquisitions that would further cement its position in the crypto world.

“Ripple is in discussions with several startups and expects to accelerate its deal-making activity, and work towards enabling Tokenization,” a company spokesperson said.

Recently, Ripple joined the stablecoin market with the RLUSD token, which has seen a surge in trading volumes on a few exchanges. Its new Tokenization strategy involves acquiring firms in crypto custody and stablecoin businesses to consolidate its position in the increasingly competitive market.

Moreover, not even the legal tussles between Ripple and the U.S. SEC deterred its progress. As if for a dare, even though the SEC has filed an appeal for a partial ruling in favor of Ripple, the company scaled operations on growing investor confidence with a friendlier regulatory outlook of the new administration.

As market dynamics evolve, XRP’s trajectory appears increasingly promising. With the potential approval of an XRP ETF, continued investor interest, and strategic acquisitions, the cryptocurrency is well-positioned for significant growth. However, whether it can ultimately surpass Ethereum’s market cap remains to be seen, as much depends on external factors and the broader crypto market’s performance.