XRP's market cap poised to surpass Ethereum's by 2025: Insights provided.
Crypto Duo: Will XRP Dethrone Ethereum in 2023?
The battle between XRP and Ethereum is heating up, with chart patterns suggesting that XRP could steal Ethereum's spot as the second-biggest cryptocurrency this year.
At the time of writing, Ethereum (ETH) was trading around $1,837, while Ripple's XRP was at $2.20. Despite this, both prices significantly outshine their respective year-to-date lows. With a combined market cap of $370 billion, these two powerhouses hold considerable sway in the crypto realm.
XRP Soars, Ethereum Dives
The XRP token showcases two bullish chart patterns that suggest a strong breakout is imminent. These patterns include a giant bullish pennant on the daily chart and a falling wedge pattern. The convergence of the two lines in the pennant typically triggers a bullish breakout. Moreover, XRP has remained above the 100-day moving average, signaling an eventual rebound. The next target for XRP is the year-to-date high of $3.4, which would propel its market cap to almost $200 billion.
On the contrary, Ethereum (ETH) has formed a double-top pattern on the daily chart, with a neckline at $2,140. Given the context, a double-top often causes a strong bearish breakout, leading to a possible price drop to as low as $1,000. This bearish breakdown would bring Ethereum's market cap down to approximately $120 billion.
Fundamental Perspective
Fundamentally, Ripple exhibits more catalysts at this juncture. The SEC is expected to approve a spot XRP exchange-traded fund (ETF) later this year, while the Ripple-backed USD stablecoin, RLUSD, is gaining traction in the market. Ethereum's current total value locked (TVL) has, however, increased by 42.5% in 2023, despite a price downturn. Ongoing adoption of Layer-2 solutions and upcoming upgrades, like Ethereum 2.0, could positively impact its market cap and price.
Heads Up: XRP Set to Outshine Ethereum
It's an exciting time for crypto enthusiasts as the competition between XRP and Ethereum intensifies. If current chart patterns play out, XRP could rise to become the second-biggest cryptocurrency by the end of 2023. However, it's essential to remember that both cryptocurrencies can exhibit significant market volatility and are subject to regulatory changes. As such, investors and traders should diligently consider fundamental factors like network upgrades, regulatory clarity, and broader market sentiment before making rigorous investment decisions.
- The likelihood of XRP dethroning Ethereum in 2023 is increasing, as suggested by chart patterns pointing towards a strong breakout for XRP.
- At present, Ethereum (ETH) is trading around $1,837, while Ripple's XRP is at $2.20, both significantly above their respective year-to-date lows.
- The combined market cap of Ethereum and XRP currently stands at $370 billion, positioning them as influential players in the crypto realm.
- XRP has showcased two bullish chart patterns, a giant bullish pennant and a falling wedge, signaling a potential bullish breakout and a target of $3.4 for XRP.
- In contrast, Ethereum has formed a double-top pattern, potentially leading to a strong bearish breakout and a possible price drop to $1,000.
- From a fundamental standpoint, Ripple has more catalysts, such as the anticipated approval of a spot XRP ETF and growing popularity for the Ripple-backed USD stablecoin, RLUSD.
- Investors and traders should exercise caution when making investment decisions, as both cryptocurrencies exhibit significant market volatility, are subject to regulatory changes, and the outcome could largely depend on factors like network upgrades, regulatory clarity, and broader market sentiment.
