Reasoning for XRP Market Cap Surpassing Ethereum's by 2025
Cryptocurrency Showdown: XRP vs Ethereum
(Last update: May 6, 2025)
Saturday saw a divergent trend for Ripple's XRP and Ethereum, as the former showed promising signs while the latter threatened to slide. At the last check, Ethereum was trading around $1,837, while XRP clung to $2.20 – both notable improvements from their respective year-to-date lows.
With market caps of $220 billion and $150 billion, respectively, the cryptocurrencies presented two distinct chart patterns, raising hopes that XRP could usurp Ethereum's second spot by year-end.
Ethereum – Bearish Breakout Imminent?
Ethereum has been struggling to breach the $2,000 resistance, eventually forming a rising wedge, a bearish pattern associated with price falls. The double-top pattern at $4,086, with a neckline at $2,140, further strengthens this bearish outlook. Using the double-top pattern's measurement method, critics foresee a drop as low as $952. If Ethereum indeed tumbles to the psychological barrier at $1,000, its market cap will stand at around $120 billion.
XRP – Bullish Breakout on the Horizon?
XRP, on the other hand, offers a bullish outlook as it has formed two promising chart patterns: a giant bullish pennant and a falling wedge. A bullish breakout is expected once these two patterns converge, with the next price target being the year-to-date high of $3.4. Hitting this milestone would push XRP's market cap to almost $200 billion.
Fundamentally, XRP has more momentum in its favor, with the SEC likely to approve a spot XRP ETF by the end of this year and the Ripple USD (RLUSD) stablecoin gaining market share. If these developments play out, there's a chance that XRP could take Ethereum's second position by year's end.
A Closer Look
As of early May, XRP's market cap was approximately $138.97 billion, significantly below Ethereum's $291 billion. For XRP to surpass Ethereum, it needs to add around $152 billion to its market cap. This could happen if its price rises to about $5, representing a 111% increase from its current price around $2.37. Analysts like Standard Chartered even predict XRP could reach $5.50 by the end of 2025, enough to exceed Ethereum's market cap if Ethereum fails to rally significantly.
Caution is needed, however, as both cryptocurrencies operate in volatile markets and subject to regulatory developments.
- The cryptocurrency market caps stand at $220 billion for Ethereum and $150 billion for XRP, revealing a potential for XRP to overtake Ethereum's second position by year-end.
- Ethereum is showing a bearish trend with a formation of a rising wedge and a double-top pattern at $4,086, hinting at a possible drop as low as $952 if it breaks the $2,000 resistance.
- Conversely, XRP is displaying a bullish pattern with the formation of a giant bullish pennant and a falling wedge, suggesting a potential bullish breakout and a price target of the year-to-date high of $3.4, which would push XRP's market cap to nearly $200 billion.
- Fundamentally, XRP has advantages in its favor, such as the possibility of a spot XRP ETF approval by year-end and the increasing market share of the Ripple USD (RLUSD) stablecoin, making room for XRP to potentially exceed Ethereum's market cap if these developments materialize.
