Recent data suggests a significant shift in the cryptocurrency landscape, with XRP exhibiting strong indicators that hint at a potential overtaking of Ethereum (ETH) in market capitalization. A confluence of factors, including XRP’s fully diluted valuation surpassing Ethereum’s, a noticeable migration of capital, and increasingly positive investor sentiment, are fueling this possibility.
XRP’s Valuation Edge Signals Potential Market Cap Flip
A key metric highlighting XRP’s growing strength is its Fully Diluted Valuation (FDV). According to CoinMarketCap data, XRP’s FDV has reached $210 billion, exceeding Ethereum’s $196 billion. FDV represents the total potential market capitalization if all tokens were in circulation.
This higher valuation for XRP suggests the market currently places a greater long-term value on its total supply compared to Ethereum’s. Investors like John Squire and Edoardo Farina interpret this FDV lead as an early signal that XRP’s actual market capitalization could soon follow suit. Farina even stated, “This marks over 6 straight months of XRP outperforming Ethereum. The flip has already begun!” Investor DONNIE echoes this sentiment, believing the higher FDV reflects a growing market acceptance of XRP’s potential.
BREAKING: $XRP 👑 has officially surpassed ETH in Fully Diluted Market Cap!
— EDO FARINA 🅧 XRP (@edward_farina) April 18, 2025
XRP: $208.4B
ETH: $192.5B
This marks over 6 straight months of XRP outperforming Ethereum. The flip has already begun! 🔥 pic.twitter.com/SOGelvoviT
Capital Flows Indicate Growing Preference for XRP
Further bolstering XRP’s case is the observable shift in investment capital. TradingView data reveals a significant drop in Ethereum’s dominance (ETH.D) to a new low in 2025, while XRP’s dominance (XRP.D) has seen a sharp increase. Since November of the previous year, ETH.D has nearly halved from 14% to 7%, while XRP.D has more than tripled from 1.2% to 4.5%. This stark contrast underscores a growing preference among investors for XRP over Ethereum.
This capital movement has also triggered a significant technical development on the XRP/ETH trading pair, breaking a downtrend line that had been in place since 2016, signaling a potential long-term bullish trend for XRP relative to Ethereum. CoinShares’ recent report further supports this trend, noting a $37.7 million inflow into XRP investment products in the past week, contrasting with a $26.7 million outflow from Ethereum products.
Positive Sentiment Surrounds XRP as Ethereum Faces Scrutiny
Finally, the prevailing investor sentiment appears to favor XRP. Recent reports indicate increasing optimism surrounding XRP, fueled by support from financial institutions and the ongoing development of the XRP Ledger. Ripple’s recent $1.25 billion acquisition of Hidden Road, the launch of Asia’s first institutional XRP investment fund by HashKey, and Coinbase’s introduction of CFTC-regulated XRP futures have all contributed to this positive atmosphere.
Conversely, Ethereum has faced negative headlines, including reports of its dominance hitting a five-year low and criticisms regarding its decentralization. This divergence in public perception and market sentiment could be a crucial catalyst in propelling XRP’s market capitalization past that of Ethereum.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
Also Read: XRP Defies Trend with $37.7M Inflows as Crypto Funds Recover Slightly, Says CoinShares
I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
