Ripple’s XRP Flips Solana and Tether in Market Cap: Is Solana in Trouble?

Key Takeaways

• XRP’s Historic Surge: Ripple has climbed to $2.91, marking its highest price since January 2018, with a 2-month gain of 460%. $XRP has overtaken Tether ($USDT) and Solana ($SOL) to become the third-largest cryptocurrency by market cap.
• South Korea’s Impact: South Korean traders have played a crucial role in XRP’s rally. The XRP/KRW pair dominates trading volumes on Upbit and Bithumb, surpassing even Bitcoin trade volumes.
• Regulatory Optimism: Anticipation of SEC Chair Gary Gensler's resignation and Trump’s pro-crypto stance have fueled investor confidence in Ripple, alongside hopes for an XRP spot ETF.
• All-Time High Futures Interest: XRP’s futures open interest reached a record $3.91 billion, reflecting growing trader enthusiasm and bullish sentiment for the token’s price action.
• Solana’s Struggles: SOL faced a sharp correction, losing 11.56% over the week. Analysts attribute this to overbought conditions and post-rally fatigue, though long-term prospects remain optimistic.

XRP Successfully Flips Tether and Solana To Become World’s Third-Biggest Crypto Amid Parabolic Surge

Ripple has been on a historic run, solidifying its position as the third-largest cryptocurrency by market capitalization. At the time of writing, XRP boasts a market cap of $146 billion, overtaking Solana ($112 billion) and Tether’s USDT ($134 billion). Over the weekend, XRP crossed the $2 mark for the first time in almost seven years, reaching a peak of $2.91. This marks the highest price since January 2018, with a 460% surge in value over the past month.

XRP achieved a multi-year high, fueled by a staggering 54% weekly gain. This rally also rekindled discussions about XRP’s potential to surpass Ethereum. However, with Ether holding a commanding $460 billion market cap, XRP still has significant ground to cover. Nonetheless, Ripple’s token has defied all odds, bouncing back from challenges posed by the SEC lawsuit to reclaim its place among the top three cryptocurrencies.

The Main Catalysts for XRP Pump

South Korean Traders Fuel Run

One of the driving forces behind XRP’s meteoric rise is its massive popularity among South Korean traders. Data from Scopescan shows that XRP/KRW trading volumes on Upbit, South Korea’s largest exchange, reached $3.8 billion in the last 24 hours, surpassing Bitcoin trades by 11 times.

Similarly, on Bithumb, XRP made up 32% of the platform's trading volume, totaling $1.2 billion. Ryan Kim of Hashed attributes this to South Korea's unique XRP community, which dates back to early adoption campaigns in the country. He remarked, “Ripple Labs sold XRP to Korean Ajummas with a Ponzi scheme in 2014. Probably, they made so much money. There is a genuine XRP community in Korea, and that’s why Koreans are buying XRP a lot.”

On a global scale, Binance and OKX also reported increased XRP trading activity. However, Bitcoin and Ethereum maintained higher volumes overall. The loyalty of South Korea’s XRP community and the institutional interest underscores the recent $XRP rally.

Astonishing XRP Surge Driven by Regulatory Hopes and ETF Speculation

XRP’s resurgence aligns with a broader shift in market sentiment following Donald Trump’s election victory. The anticipated resignation of SEC Chair Gary Gensler, effective January 2025, has fueled optimism over Ripple’s regulatory outlook. With Trump’s pro-crypto campaign promises, investors are hopeful for reduced regulatory challenges and potential approval of XRP-centric ETFs.

Additionally, asset managers 21Shares and Bitwise have filed applications for XRP spot ETFs. CoinShares data shows that XRP investment products witnessed $95 million in inflows last week, representing 67% of total inflows this year. Analysts believe this is a response to increasing speculation about the approval of U.S.-based XRP ETFs.

Moreover, in February 2024, Ripple CEO Brad Garlinghouse stated that an XRP ETF is “inevitable,” especially following the SEC’s greenlighting of Bitcoin and Ethereum ETFs.

Ripple XRP Futures Open Interest Hits ATH with $3.91B; XRP $3 Soon?

According to Wu Blockchain, Ripple’s XRP reached an all-time high in futures open interest, climbing to $3.91 billion. This milestone reflects growing investor confidence and heightened trading activity surrounding the token.

Binance led the charge with 535 million XRP contracts, making up 32.04% of the total open interest. Bybit followed closely with 524 million contracts, while Bitget secured the third spot with 327 million contracts.

The surge in open interest signals bullish expectations for XRP’s price trajectory. Many analysts predict a breakout, with the $3 mark being a significant psychological and technical resistance level.

XRP Price Prediction

XRP’s recent performance has set the stage for a potential climb to $3. Analysts suggest that once XRP surpasses $2.75, it could swiftly move toward $3.

The $3 target is significant, representing both psychological resistance and a key Fibonacci extension point. However, XRP faces immediate hurdles at $2.50 and $2.75. In case of a pullback, $2 and $1.60 are expected to serve as strong support levels.

Longer-term projections remain optimistic, with some analysts forecasting XRP prices as high as $5.34 if Trump’s presidency leads to favorable regulatory outcomes.

You can find more info on user sentiment on XRP price prediction on crypto prediction markets.

Sol Price Prediction: Is Solana in Trouble? SOL Price Turns Red with XRP Rally

Despite ATH in trading volumes on-chain, Solana's price has faced bearish pressure recently, turning red amidst XRP's impressive rally. SOL, which had been hovering around a key support zone of $205, saw a sharp decline as broader market sentiment shifted in favor of XRP. The drop can be attributed to several factors, including profit-taking from traders and reduced network activity on Solana.

Another concern is the broader crypto market consolidation, where altcoins often face increased volatility. While XRP's performance reflects a targeted rally due to specific legal and ecosystem developments, SOL has struggled to match this momentum. Traders now watch closely to see if Solana can hold above critical support levels to prevent further decline.

In the short term, Solana remains vulnerable to additional downside if selling pressure continues. Immediate resistance is noted around $210, while a break below $200 could indicate deeper corrections.

Can SOL Recover Its Momentum?

Solana’s long-term potential remains a point of discussion for investors. As one of the leading blockchain platforms for decentralized applications (dApps), NFTs, and DeFi, Solana has a robust ecosystem that could support its price recovery.

Key indicators suggest SOL could regain momentum if certain conditions align. The $205 support zone remains pivotal for maintaining bullish sentiment, while a break above $220 would signal renewed upward momentum. Analysts highlight potential triggers, including increasing network adoption, strategic partnerships, and macroeconomic factors such as a return to a risk-on market environment.

From a technical perspective, Solana must consolidate its price action within the $200–$220 range to establish a stable base. If this occurs, projections point toward a possible rally to $250 in the medium term. On-chain metrics also show promising signs, such as a steady rise in wallet activity and increased staking participation, indicating sustained interest from the community.

Overall, while Solana faces challenges in the immediate term, its strong fundamentals and ecosystem development offer a solid foundation for recovery in the coming months.

Conclusion

XRP's extraordinary rally has reshaped the crypto landscape, propelling it past Solana and Tether to secure the third spot in market capitalization. Driven by South Korean trading enthusiasm, regulatory optimism, and ETF speculation, Ripple’s native token is riding high on investor confidence.

Meanwhile, Solana’s recent correction underscores the volatility of the crypto market. While $ SOL's long-term potential remains intact, its current struggles highlight the challenges of maintaining momentum during periods of market euphoria. As XRP token eyes $3 and beyond, all eyes are on Ripple to see if this momentum can translate into sustained dominance.