The Rise of XRP: Could it Overtake Ethereum?
Dom Kwok, a former analyst at Goldman Sachs and now a co-founder of EasyA, is stirring up waves in the cryptocurrency community with his recent predictions about XRP’s potential to overtake Ethereum as the second-largest digital asset by market capitalization. His assertion has captured the attention of many investors and enthusiasts, especially in light of XRP’s remarkable upward trajectory in recent months.
XRP’s Meteoric Rise Since November 2024
The backdrop for XRP’s recent surge can be traced back to November 2024, coinciding with the aftermath of the U.S. presidential election. During this period, the overall cryptocurrency market experienced a resurgence, leading to XRP’s impressive climb. The cryptocurrency soared to a peak of $3.39, eventually stabilizing in a consolidation phase. However, XRP’s trajectory wasn’t finished; over the weekend of January 11, 2025, it recorded an astonishing 10% jump, eclipsing much of the market and pushing the XRP/ETH trading pair to a notable 50-month high.
What’s even more compelling is the recent performance of XRP against Ethereum. Since the market movements of late 2024, XRP has surged a staggering 351% relative to ETH, showcasing its significant outperformance.
Dom Kwok’s Bullish Outlook
Kwok’s favorable outlook towards XRP isn’t merely speculation; it’s rooted in the digital asset’s robust recent results. He has expressed optimism that XRP has a "high chance" of flipping Ethereum soon. His provocative statement—“Are you ready for a new world order?”—alludes to the potential seismic shifts in the cryptocurrency ecosystem should this scenario unfold. Given Kwok’s expertise and history of backing XRP, his commentary has inspired greater attention to XRP’s technological advancements, particularly the tokenization of real-world assets on the XRP Ledger (XRPL).
Understanding Market Capitalization Dynamics
As XRP climbs, it’s essential to revisit the numbers. Currently, XRP boasts a market capitalization of $177 billion, while Ethereum holds strong at $407 billion. For XRP to surpass Ethereum, it needs to achieve a price of around $7.07—an increase of approximately 129.5% from its present valuation. This estimate assumes Ethereum’s price remains relatively stable, an assumption that carries risk amidst the volatile nature of cryptocurrency trading.
Market analysts, including EGRAG Crypto, suggest that if XRP can break certain resistance levels, the price could climb to $7.50, further igniting speculation around its future performance and positioning in the crypto rankings.
Current Performance Metrics
At present, XRP is trading at $3.10, showing an uplifting trend with a 31.26% gain over the past week and 8.7% in the last 24 hours. After a 49% rise since the beginning of 2025, this contrasts sharply with Ethereum’s slower growth, which has seen only a 1.45% increase in the same timeframe. The stark difference in performance has positioned XRP in a favorable light, raising the prospects of a potential flip of market capitalization if the current momentum continues.
Key Challenges for Ethereum
Despite Ethereum’s established status as the dominant player in the cryptocurrency market, it is not without challenges. The network has struggled with scalability concerns, particularly regarding high gas fees and congestion issues. In contrast, XRP is known for its efficient transaction processing capabilities, an aspect that could appeal to users seeking lower costs and faster transfers. This efficiency places XRP in a strong position to attract users from a market that increasingly values speed and affordability.
A Shift in the Crypto Landscape?
The future seems uncertain yet promising for XRP, especially considering the current market dynamics and Kwok’s insights. While the notion of XRP overtaking Ethereum may sound ambitious, trends suggest that the possibility is gaining traction. With its current momentum and the hurdles faced by Ethereum, XRP might soon be in a strong position to challenge for the coveted second-largest cryptocurrency title.
The evolving cryptocurrency space is rife with potential, and as these events unfold, the crypto community will be watching closely to see how this fierce rivalry progresses.
