Sam Ruskin, an analyst at blockchain research firm Messari, suggested that XRP might surpass Ethereum in valuation within the next month. Ruskin attributes this potential milestone to several converging factors, including heightened market enthusiasm, political developments, and an increased focus on OG cryptocurrencies, dubbed “boomer coins” or “dino coins”.

Market Trends Favor XRP

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.

XRP vs. ETH market cap comparison. Source: Sam Ruskin via X

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.

Ethereum Faces Challenges

While XRP gains traction, Ethereum, the second-largest cryptocurrency by market cap, appears to be grappling with headwinds. Ruskin noted that Ethereum was 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. The recent Trump Meme Coin launch on Solana, caused Solana to skyrocket 15% overnight, but tanked ETH, with Solana now the token launch network of choice for the wider market.

Ethereum (ETH) price vs. Open Interest. Source: Sam Ruskin via X

In contrast, XRP has demonstrated 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, potentially bringing its market cap closer to Ethereum’s $415 billion valuation.

Record-Breaking Performance

XRP recently 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.

XRP outperformed BNB, SOL, and USDT in terms of market capitalization growth. Source: Sam Ruskin via X

Brad Garlinghouse, CEO of Ripple, has been 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.

Ripple’s Strategic Moves

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.

Ripple’s XRP price vs. Open Interest. Source: Sam Ruskin via X

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.

XRP’s Future Prospects

Ripple (XRP) price chart. Source:XRP Liquid Index (XRPLX) via Brave New Coin

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.

For now, Ripple’s XRP news is positive. The recent XRP price rise is a testament to its resilience and the growing influence of Ripple in the rapidly changing cryptocurrency landscape. With rumors that XRP will be greenlit for inclusion in an American Crypto Reserve under President Trump, XRP’s prospects could not be bright. Raise your price predictions, XRP is headed to the moon in 2025.

Will XRP be included in an American Crypto Reserve? Source: NYP