XRP token has surpassed Ethereum in fully diluted market capitalization (FDV) for the first time. This represents a major shift in the altcoin market.
This milestone reflects the growth of XRP due to an improved regulatory environment in the US and increased institutional interest.
XRP Surpasses Ethereum in FDV
According to data from Token Terminal, XRP's FDV has exceeded $240 billion, surpassing Ethereum's $231.5 billion.
FDV represents the total value of a project, including tokens not yet in circulation. This metric provides an indication of the potential value of the blockchain network.
Despite leading in FDV, XRP still lags behind Ethereum in market capitalization. Ethereum's market cap is around $231 billion, while XRP's is significantly lower at $140 billion.
However, XRP's rapid ascent reflects a shift in the market dynamics between the two networks.
Over the past few months, Ethereum has faced persistent price issues and internal leadership crises that have impacted its ecosystem. In contrast, XRP has experienced a dramatic turnaround due to a mix of regulatory clarity and institutional adoption.
Following Trump's re-election, XRP's price has surged over 300%, reaching $3.38 in January. The XRP Ledger has also seen significant adoption as major financial institution Société Générale integrated the technology.
This momentum aligns with crypto-friendly policies, such as the appointment of industry-friendly regulators and strategic Bitcoin and national digital asset reserves.
Trump has mentioned XRP as one of the key assets included in these efforts, further boosting investor confidence.
Meanwhile, XRP's institutional adoption is accelerating, with major asset managers like Grayscale, Canary, and Franklin Templeton filing for physical exchange-traded funds (ETFs) with the US Securities and Exchange Commission (SEC).
There are also speculations that BlackRock, the world's largest asset manager, may file for its own XRP ETF.
"BlackRock will file for Solana and XRP ETFs. Solana is anytime possible, and XRP will be possible after the SEC lawsuit is resolved." – Nate Geraci, President of The ETF Store prediction.
Additionally, regulatory clarity appears to be on the horizon. Reports indicate that the SEC is finalizing its enforcement action against Ripple, which could resolve the legal dispute that has negatively impacted XRP.
Furthermore, internal SEC discussions suggest that XRP may be classified as a commodity rather than a security, a potential shift in the regulatory stance that emerged during settlement negotiations with Ripple.
