Ripple’s token XRP has drawn renewed attention as the company behind it pushes into banking services and stablecoins, but analysts say overtaking Ethereum would require major shifts in adoption and capital flows.
Ripple has expanded beyond payments software into financial infrastructure through acquisitions this year. The company bought clearing and prime-brokerage firm Hidden Road for $1.25 billion, added cash-management platform GTreasury for $1 billion, and acquired Rail to support its stablecoin efforts. Ripple says these moves aim to make the XRP Ledger more useful to banks and other institutions.
XRP traded near $1.42 with a market capitalization of roughly $88 billion at the time of reporting, placing it fourth among crypto assets. Ethereum’s market cap stood near $282 billion. By that math, XRP would need to rise above about $4.58 to surpass Ethereum, assuming Ethereum’s value remained unchanged.
Ripple CEO Brad Garlinghouse has publicly suggested XRP could overtake Ether, but industry observers note several practical hurdles. Institutional interest has increased: spot XRP ETFs launched last November have attracted more than $1 billion of inflows. By comparison, ETFs tracking Ethereum have drawn nearly $12 billion, leaving XRP well behind on institutional flows.
On-chain mechanics offer mixed signals. The XRP Ledger burns small amounts of XRP on each transaction, which can reduce circulating supply as usage grows. At the same time, Ripple continues to release tokens into circulation, a dynamic the company says is intended to support network growth. Analysts caution that token releases could offset burn effects unless transactional volume rises substantially.
New products from Ripple could also shift demand. The company is developing an RLUSD stablecoin intended as a bridge currency for cross-border flows. That product could lower demand for XRP by providing an alternative liquidity tool, Ripple’s communications indicate.
Other constraints include execution risk and existing holder behavior. Ripple must convert corporate purchases into active ledger usage to create sustained token demand. Meanwhile, holders who bought XRP at higher prices may sell to cut losses, creating downward pressure that new buying would have to overcome.
Regulatory context has evolved since the Securities and Exchange Commission sued Ripple in 2020. Some observers point to clearer guidance and growing acceptance of stablecoins and tokenization as potential tailwinds for XRP. Still, observers say market structure, ETF inflows and broader crypto trends will determine whether XRP can close the gap with Ethereum.
Long-term prospects for XRP depend on Ripple’s ability to translate acquisitions into usable services, on-chain activity that outpaces token releases, and continued institutional adoption. Whether those factors will be enough to push XRP past Ethereum remains uncertain.
You can read the original article here: https://www.fool.com/investing/2026/04/22/1-cryptocurrency-to-buy-before-it-goes-parabolic/
