XRP has reemerged as the third-largest cryptocurrency by market capitalization, reclaiming its position after a brief dip to fourth place. Trading at $2.61, XRP now boasts a market cap of nearly $153 billion—edging past Tether and reigniting conversations about its long-term potential. This resurgence follows a 21% price surge, fueled by strong market momentum, rising investor interest, and growing speculation about its future role in the digital asset ecosystem.
The broader crypto market has also benefited from improved sentiment, particularly due to ongoing U.S.-China trade discussions that have eased macroeconomic concerns. Over the past three days alone, XRP has gained between 7% and 12%, outpacing many of its peers and drawing renewed attention from both retail and institutional investors.
What’s Driving XRP’s Recent Surge?
The rally in XRP is not just a short-term price spike—it reflects deeper structural trends within the market. One of the most significant drivers has been the sharp increase in futures open interest, which has surged by over $1 billion in just one week. According to on-chain analytics firm Glassnode, XRP futures open interest climbed from $2.42 billion to $3.42 billion—an impressive 41.6% rise.
This spike in leveraged positions coincided with a price climb from $2.14 to $2.48, suggesting growing directional confidence among traders. Higher open interest typically indicates that more capital is entering the market, often preceding sustained price movements—especially when combined with bullish technical indicators.
Beyond derivatives activity, another key factor supporting XRP’s momentum is its expanding user base. The number of non-empty XRP wallets has reached an all-time high of nearly 6.5 million, marking the highest level in the asset’s 12-year history. In early 2025 alone, over 638,000 new wallets were created, signaling robust adoption across both individual and institutional investors.
This growing network effect strengthens XRP’s fundamentals. More active addresses mean increased transaction volume, greater liquidity, and enhanced utility—particularly important for a digital asset designed to facilitate fast, low-cost cross-border payments.
Technically, XRP remains in a strong bullish formation. The Relative Strength Index (RSI) sits in neutral territory, avoiding overbought conditions and leaving room for further upside. Meanwhile, most moving averages are aligned upward, generating buy signals across multiple timeframes. The Moving Average Convergence Divergence (MACD) also shows strengthening bullish momentum, reinforcing the idea that upward pressure could continue in the near term.
Can XRP Overtake Ethereum?
One of the most debated questions in crypto circles today is whether XRP can surpass Ethereum in market capitalization. While Ethereum still holds a commanding lead—currently trading near $2,700 with a market cap exceeding $320 billion—analysts are beginning to question if this dominance will last.
Standard Chartered Bank has made a bold prediction: XRP could overtake Ethereum by 2028. The bank cites XRP’s core utility as a key advantage. Unlike Ethereum, which primarily serves as a platform for decentralized applications and smart contracts, XRP is engineered specifically for global payments. Its ability to settle cross-border transactions in seconds at minimal cost makes it highly attractive to financial institutions and payment providers.
Analyst Geoffrey Kendrick highlights XRP as one of the top-performing assets alongside Bitcoin and Avalanche, while labeling Ethereum as an underperformer relative to its valuation. This perspective challenges conventional wisdom but gains traction as traditional finance increasingly prioritizes efficiency and scalability over pure decentralization.
Another compelling development is the growing inflow into XRP-based exchange-traded funds (ETFs). For five consecutive weeks, XRP ETFs have seen net inflows, with $14 million added this week alone—up from $10 million the previous week. Market observers speculate that the U.S. Securities and Exchange Commission (SEC) may soon approve a spot XRP ETF, which would be a game-changer.
Some projections suggest that if approved, XRP ETFs could attract up to $8 billion in assets during their first year—potentially outperforming even Ethereum ETFs in terms of early adoption and investor appetite.
The Modern Investor, a well-known market commentator, recently noted that if XRP reaches $5.20—a doubling of its current price—it could surpass Ethereum in market cap and claim the second spot behind Bitcoin. Legal expert John Deaton has echoed this sentiment, arguing that Wall Street’s quiet enthusiasm for XRP is underestimated and that a “flippening” could occur as early as this year.
Of course, Ethereum is not standing still. It has gained nearly 50% over the past two weeks amid improvements in layer-2 scaling solutions and rising staking yields. However, its higher transaction fees and slower settlement times compared to XRP may limit its appeal for institutional payment use cases.
Frequently Asked Questions
Q: Why did XRP become the third-largest cryptocurrency again?
A: XRP reclaimed third place due to a 21% price surge to $2.61 and a market cap jump to $153 billion, driven by rising open interest, increased wallet adoption, and positive macroeconomic sentiment.
Q: What is open interest, and why does it matter for XRP?
A: Open interest refers to the total number of outstanding futures contracts. A $1 billion increase in XRP open interest signals growing trader confidence and potential for continued price momentum.
Q: How many XRP wallets exist today?
A: There are now nearly 6.5 million non-empty XRP wallets—the highest number in its history—with over 638,000 new wallets added in early 2025.
Q: Could XRP really overtake Ethereum?
A: While challenging, some analysts believe XRP could surpass Ethereum by 2028 due to its superior payment infrastructure and potential ETF approval, especially if it reaches $5.20 per token.
Q: Is an XRP ETF likely to be approved?
A: There is growing speculation that the SEC may approve a spot XRP ETF, especially given consistent inflows into existing crypto ETF products and increasing institutional demand.
Q: What makes XRP different from Ethereum?
A: XRP is optimized for fast, low-cost international payments, whereas Ethereum focuses on decentralized applications and smart contracts. This gives XRP an edge in financial settlement use cases.
Final Outlook
XRP’s resurgence highlights its enduring relevance in the evolving crypto economy. With strong technicals, growing adoption, and increasing institutional interest, it is no longer just a speculative asset—it's becoming a serious contender in the global financial infrastructure conversation.
While overtaking Ethereum remains a tall order, the momentum behind XRP suggests it may be undervalued relative to its utility and real-world application. As regulatory clarity improves and product offerings like ETFs expand, XRP could enter a new phase of sustained growth.
Whether you're a long-term holder or evaluating strategic allocations, keeping a close eye on XRP’s trajectory—and the forces shaping its rise—is essential in today’s dynamic digital asset landscape.
Core Keywords: XRP, Ethereum, market cap, crypto rally, open interest, ETF approval, cross-border payments, digital asset