- XRP surged in 2025 but remains far behind Ethereum in market capitalization.
- Ethereum’s dominance in DeFi and Web3 gives it a strong structural advantage.
- Based on current trends, XRP overtaking ETH anytime soon looks unlikely.
Ripple’s XRP had one of its strongest years on record in 2025. The token broke above the $3 level in January for the first time in seven years and went on to set a new all-time high of $3.65 in July. Much of that momentum followed the long-awaited settlement of the SEC’s lawsuit against Ripple, which removed a major cloud hanging over the asset. Still, after a difficult few months tied to a broader market downturn, the big question remains: can XRP realistically overtake Ethereum and claim the number two spot by market capitalization?
Where XRP and Ethereum Stand Today
According to CoinGecko data, XRP currently ranks as the fifth-largest cryptocurrency, with a market capitalization of roughly $113 billion. Ethereum, by comparison, sits comfortably in second place with a valuation near $359 billion, almost three times larger than XRP’s. Closing that gap would require not only significant growth from XRP, but also a scenario where Ethereum’s expansion slows meaningfully.
XRP’s strengths are clear. It has carved out a niche in cross-border payments and continues to gain traction with banks and financial institutions using Ripple’s infrastructure. Increased institutional adoption could translate into higher demand for XRP over time, especially as regulatory clarity improves.
Ethereum’s Network Advantage Remains Intact
Ethereum, however, operates on a very different scale. It remains the dominant smart contract platform, hosting the majority of DeFi protocols, NFT ecosystems, and Web3 applications. While competitors like Solana are gaining ground, Ethereum’s network effects, developer base, and entrenched role in decentralized finance give it a substantial lead.
The use of ETH as gas within DeFi and other onchain applications is also expected to grow over the coming years. As long as Ethereum continues to attract developers and capital, its market cap is likely to rise alongside XRP’s, making it difficult for Ripple’s token to leapfrog it.
Is a Flippening Realistic Anytime Soon?
Given current adoption trends, XRP overtaking Ethereum does not appear likely in the near term. For that to happen, XRP would need to see explosive growth in usage and valuation while Ethereum stagnates, a scenario that current data does not strongly support. Ethereum’s ecosystem depth and ongoing development give it a structural advantage that goes beyond price cycles.
That said, crypto markets have a habit of surprising investors. Regulatory shifts, new financial products, or changes in institutional behavior could alter trajectories over time. For now, though, Ethereum appears well-positioned to maintain its spot just behind Bitcoin, with XRP playing a different but still important role in the broader digital asset landscape.
