XRP's Institutional Momentum Poses a Threat to Ethereum's Dominance Among Altcoins

XRP has become the top-performing momentum cryptocurrency in 2025, outshining

(ETH) in terms of price stability and growing institutional participation. Recent market studies show that has only fallen by 6% against , whereas Ethereum has dropped by 30%, highlighting XRP’s stronger standing in the market. This difference is largely fueled by increased institutional attention to XRP, with more than 10 spot ETF proposals submitted to the U.S. Securities and Exchange Commission (SEC) and a notable rise in corporate holdings. Firms like and have amassed considerable XRP assets, with institutional holdings now exceeding $5 billion in total value title5 [ 5 ]. The token’s value has climbed to $2.17, giving it a market cap of $128 billion and positioning it as a strong rival to Ethereum’s dominance among altcoins title5 [ 5 ].

The XRP Ledger (XRPL) has strengthened its attractiveness through technical innovations such as minimal transaction costs, high processing speeds, and eco-friendly infrastructure. Experts point to its automated market

(AMM) system as a better option than Ethereum’s DeFi offerings, especially regarding reduced slippage and improved capital usage title5 [ 5 ]. On top of this, Ripple’s recent introduction of its stablecoin Ripple USD (RLUSD) has broadened XRP’s role in international payments and liquidity solutions, attracting interest from both established and crypto-focused companies title9 [ 9 ]. These advancements have enabled XRP to serve as a connector between traditional and digital financial systems, a position that Ethereum’s older network has struggled to match title7 [ 7 ].

Clearer regulations have also been crucial in XRP’s renewed growth. In 2024, a favorable SEC decision stated that XRP is not considered a security in secondary market transactions, boosting confidence and reopening access to U.S. exchanges title5 [ 5 ]. This regulatory certainty has accelerated institutional adoption, with XRP futures trading at the

exceeding $542 million in volume since May 2025 title9 [ 9 ]. Meanwhile, Ethereum still faces persistent issues with scaling, high transaction fees, and network slowdowns, even after improvements like the Merge and expansions to Layer 2 title7 [ 7 ]. Some critics warn that Ethereum’s dependence on centralized rollups and slow protocol upgrades may undermine its decentralization and future competitiveness title5 [ 5 ].

Current market trends further highlight XRP’s momentum. The XRP/ETH pair has reached its highest level in over four years, indicating a shift in investment preference toward XRP over Ethereum title5 [ 5 ]. Analysts observe that strong institutional capital is driving XRP’s price, with CME’s XRP futures accounting for 45% of trading volume from markets outside the U.S. title9 [ 9 ]. In contrast, Ethereum’s price has hovered around $2,500, and some analysts expect a near-term decline due to waning market enthusiasm title9 [ 9 ]. While Ethereum continues to lead in DeFi and smart contracts, its dominance is being challenged by XRP’s growing real-world applications and easier path to adoption title7 [ 7 ].

Looking forward, XRP’s outlook remains optimistic. If the SEC gives the green light to a spot XRP ETF, as many expect in 2025, institutional investment could surge, potentially raising its price to around $6.83—a 215% jump from its current value title5 [ 5 ]. Some institutional supporters, such as former

analyst Dom Kwok, believe XRP may overtake Ethereum in market capitalization before the year ends title5 [ 5 ]. On the other hand, Ethereum’s long-term potential relies on successfully tackling its scaling challenges and keeping its place as a foundation for Web3 innovation title7 [ 7 ]. While Ethereum’s deflationary model and increasing ETF attention provide stability, XRP’s clear regulatory status, widespread institutional interest, and efficient technology make it the momentum leader in today’s crypto market title9 [ 9 ].