XRP Reclaims Third Spot, Eyes Ethereum with Strong Growth

XRP has surged back into the spotlight, reclaiming its position as the third-largest cryptocurrency by market capitalization after briefly slipping to fourth. Trading at $2.61, XRP’s market cap now stands at nearly $153 billion, pushing it ahead of Tether once again. This remarkable rally has been fueled by a combination of factors, including a boost in market sentiment following recent US-China trade deal talks.

The past three days have seen XRP rise by 7-12%, marking the continuation of a bullish trend that has persisted for over two weeks. At the heart of this surge is a significant increase in Open Interest, with XRP futures open interest rising from $2.42 billion to $3.42 billion in just one week, according to data from Glassnode. This $1 billion spike signals that more money is entering XRP and traders are increasingly betting on substantial price moves in the coming weeks.

Additionally, XRP has seen impressive growth in the number of wallets holding the cryptocurrency. With nearly 6.5 million non-empty wallets, XRP has reached its highest number in 12 years. In early 2025, over 638,000 new wallets were created, reflecting strong retail and institutional interest in the asset. Technical indicators also support the bullish outlook, with XRP's Relative Strength Index (RSI) remaining neutral, while moving averages flash buy signals and the MACD points to ongoing momentum.

Looking ahead, some analysts are predicting that XRP may eventually outperform Ethereum. Standard Chartered analysts forecast that XRP will surpass Ethereum in market cap by 2028, driven by its growing role in facilitating cross-border and cross-currency payments. Analyst Geoffrey Kendrick sees XRP alongside Bitcoin and Avalanche as one of the top performers, while Ethereum is expected to underperform in comparison.

The potential for XRP's continued growth is further bolstered by its strong performance in the ETF market. XRP ETFs have experienced five consecutive weeks of inflows, with $14 million added this week alone, up from $10 million the previous week. There is growing speculation that the SEC may soon approve XRP ETFs, which could further increase demand and fuel price growth. Some analysts believe that XRP ETF inflows could hit $8 billion in its first year, surpassing Ethereum's ETF performance.

While XRP is gaining ground, Ethereum is also making its mark, recently nearing the $2,700 mark after a 50% gain in the past two weeks. As the competition between these two cryptocurrencies intensifies, it remains to be seen whether XRP can continue its momentum and leave Ethereum behind. If XRP's price doubles to $5.20, it could potentially overtake Ethereum and secure the second-largest position in the crypto market.