Key Points
Sam Ruskin of Messari has identified several factors that could potentially allow XRP to overtake Ethereum in terms of market capitalization. He cited the post-election momentum, the possibility of an XRP ETF filing, and the shift towards established cryptocurrencies, also known as “boomer coins”, as crucial elements for this prediction.
Ruskin believes that XRP has seen a significant price increase of 460% since the 2024 U.S. election. This surge, coupled with growing investor interest, could possibly lead to XRP surpassing Ethereum.
Factors Behind XRP’s Potential Rise
The recent gains in XRP’s value, according to Ruskin, can be attributed to both macroeconomic factors and sector-specific catalysts. These include Donald Trump’s inauguration, speculation about a U.S. spot XRP ETF filing, and proposed capital gains tax policies that could potentially benefit U.S.-based crypto projects like XRP.
Ruskin also noted a market trend favoring established cryptocurrencies such as XRP, HBAR, Stellar, and Cardano, which are referred to as “boomer coins”.
On the other hand, Ethereum is facing challenges that include increased competition from layer-2 scaling solutions and rival blockchains like Solana. Unlike Ethereum, XRP has a more unified community and a clear narrative about its role in the future of finance.
Ruskin pointed out that the market cap of ETH ETFs only makes up 3% of all Ethereum, while the market cap of BTC ETFs makes up nearly 10% of all Bitcoin. He noted that retail investors have not shown the same level of interest in Ethereum as they have in Bitcoin, which has led to a decline in on-chain morale.
Ethereum’s on-chain metrics also show worrying trends. Ruskin highlighted the declining retail interest in ETH, the oversaturation of L2 solutions, and a fragmented community as factors that could potentially hinder its growth.
In contrast, XRP’s price momentum and growing investor confidence could lead to short-term gains. Ruskin predicts another 35-50% price increase in the months following Trump’s inauguration.
