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XRP has outperformed Ethereum in 2025, with a significantly smaller drop against Bitcoin and a rising market cap.
Technological advantages and lower fees make XRPL an attractive alternative to Ethereum's aging infrastructure.
Institutional momentum builds for XRP, with over 10 ETF filings and growing interest from investors and analysts
The longstanding altcoin hierarchy led by Ethereum may be in for a major shakeup in 2025. While Ethereum has long dominated the space with its pioneering role in smart contracts and decentralized applications (dApps), rising sentiment within the crypto community suggests that XRP could soon challenge that dominance.
Driven by strong market performance, technological advancements, and growing institutional interest, XRP's case as the next top altcoin is gaining strength.
One of the clearest indicators of XRP's growing momentum is its relative strength compared to Bitcoin. As of 2025, Ethereum (ETH) has declined by over 30% against BTC, while XRP has dropped by approximately 6%, according to Binance. This contrast in performance has amplified market chatter that XRP is not only more resilient but potentially poised for larger gains.
XRP currently trades at around $2.17, with a market capitalization of approximately $128 billion. Ethereum, meanwhile, is priced at $2,510 and has a market capitalization of $303 billion.
To overtake Ethereum, XRP would need to rise to about $6.83, representing a 215% increase. While ambitious, such gains are not unprecedented in the cryptocurrency space.
Ethereum’s leading position has long been attributed to its first-mover advantage and widespread ecosystem. However, critics argue that its current technical limitations are beginning to outweigh its legacy appeal.
According to blockchain researcher SMQKE, Ethereum’s persistent issues, including high gas fees, network congestion, and scalability problems, are discouraging new adoption, especially among developers and enterprises.
Although Ethereum has implemented upgrades such as the Merge and various Layer 2 solutions, the shift to centralized rollups and delays in core protocol developments have cast doubts on its long-term decentralization and deflationary model.
As SMQKE notes, these issues could hinder Ethereum’s ability to compete in a rapidly evolving DeFi landscape.
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The XRP Ledger is emerging as a formidable contender with features that directly address Ethereum’s pain points. XRP’s blockchain is known for its speed, low fees, and carbon-neutral infrastructure.
Its automated market maker (AMM) protocol has also been praised for its efficiency, outperforming Ethereum-based AMMs in terms of slippage control and capital efficiency.
Moreover, the XRPL's focus on financial-grade applications such as global payments, tokenized assets, and institutional liquidity is drawing increasing attention from both startups and traditional finance.
The most significant catalyst for XRP’s rise could be the institutional backing it's beginning to receive. According to Cointelegraph, over 10 spot XRP ETF proposals have reportedly been submitted to the U.S. Securities and Exchange Commission (SEC). While none have been approved yet, the surge in filings signals growing demand among asset managers and hedge funds.
Attorney John Deaton, a vocal advocate for XRP, believes that ETF approvals, if granted, could catapult XRP into the financial mainstream, making it far more accessible to both institutional and retail investors.
Deaton predicts that XRP could surpass Ethereum as early as the end of 2025, citing unprecedented interest from Wall Street.
Also Read: Will XRP Follow Apple's Path to a 50,000% Price Surge?
Supporters of the XRP thesis include Harvard-trained computer scientist Austin King, co-founder of the Omni Foundation. King has publicly criticized Ethereum for losing its edge in decentralization and questioned its inflationary trends.
In contrast, he sees XRP’s clear architecture, lower inflation risk, and focused use cases as evidence of its long-term viability.
Former Goldman Sachs analyst Dom Kwok echoes this sentiment, suggesting XRP could soon rise to second place by market cap, especially if current momentum and institutional backing continue.
Notably, the XRP/ETH trading pair has reached a 50-month high, a significant technical milestone indicating a capital flow favoring XRP over Ethereum.
While Ethereum still holds a commanding lead in developer activity, total value locked (TVL), and market cap, XRP’s rise is increasingly hard to ignore. The combination of improved market performance, better technology, and growing institutional support could mark 2025 as the year XRP seriously challenges Ethereum's dominance.
Still, it’s essential to remember that the cryptocurrency market is notoriously volatile, and numerous variables, including regulatory outcomes, network upgrades, and macroeconomic trends, will determine whether XRP’s ambitions can be realized. But if current trends hold, Ethereum may soon find its long-held number two spot under threat.
