XRP price has lost momentum this year despite benefiting from notable headlines like the end of the SEC case.
Ripple (XRP) was trading at $2 on Friday, down 41% from its highest point this year, dragging its market cap from $190 billion to $118 billion.
Still, there are rising odds that XRP will overtake Ethereum (ETH), whose price has crashed by over 61%. As we have predicted, there are rising odds that Ether will plunge below $1,000 this year.
This year’s price action has narrowed the spread between their two market caps to just $45 billion. Here are some of the top catalysts that could help XRP flip Ethereum in terms of valuation.
XRP Ledger growth
The first major catalyst that could drive XRP higher is the XRP Ledger network, a decentralized and open-source platform designed for fast, low-cost transactions. It boasts faster speeds and lower fees than Ethereum.
Two potential catalysts may boost the XRP Ledger network. First, Ripple Labs acquired Hidden Road this week in a $1.25 billion deal. This acquisition is significant because Hidden Road processes over $10 billion in daily volume.
As a result, Ripple Labs will likely migrate this payment infrastructure onto the XRP Ledger. Such a move would make it one of the most active networks in the crypto industry.
Additionally, Brad Garlinghouse has laid out his vision for Ripple to challenge SWIFT, the global payment network that processes over $150 trillion annually. This disruption could be more feasible now that the SEC has ended its case.
Garlinghouse argues Ripple’s technology is faster and more cost-effective than SWIFT. A successful implementation could increase XRP Ledger activity and support long-term price growth.
These developments are unfolding as Ethereum’s core network faces stagnation and growing reliance on competing layer-2 solutions.
XRP ETF approval
Another potential catalyst is a possible XRP ETF approval from the Securities and Exchange Commission. On Polymarket, the odds of approval have climbed to 76%, suggesting strong market expectations.
Such approval could drive new demand from institutional investors. JPMorgan analysts project these ETFs could bring in $8 billion in inflows during the first year, which would likely boost XRP’s price.
By comparison, all spot Ethereum ETFs have seen total inflows of just $2.6 billion since September, and recent outflows have been increasing.
XRP price has supportive technicals
Ethereum price has weak technicals after forming a triple-top and a death cross pattern, pointing to more downside.
XRP, in contrast, has technical support that signals a possible rebound. On the weekly chart, it has pulled back and retested the $2 level, which marks the upper edge of a cup and handle pattern. This formation is generally considered a bullish continuation signal.
XRP has also held above its 50-week and 100-week moving averages. If momentum continues, it could retest the year-to-date high of $3.4, followed by a potential move to $3.70, the target of the cup and handle pattern, and eventually reach $5 over time.
