The cryptocurrency market is buzzing following the launch of the first U.S. spot XRP ETFs, injecting recent institutional energy into the asset.
Related reading: Celebrated trader is betting $27 million that the price of XRP will fall
With a number of high-performing companies entering the race, including Canary Capital, Franklin Templeton and Grayscale, a bold question is emerging in the industry: Can XRP realistically challenge Ethereum for the second spot in the global cryptocurrency rankings?
XRP's price trends to the downside on the daily chart. Source: XRPUSD on Tradingview
XRP ETFs trigger institutional dynamics
The launch of XRP ETFs in November 2025 was a historic moment for this asset. Canarian capital XRPC debuted with first-day volume of more than $58 million, the strongest opening for an ETF among hundreds launched this year.
Franklin Templeton has now filed a Form 8-A to list the Franklin XRP ETF on NYSE Arca, signaling that another major player will launch in just a few days.
This influx of institutional interest reflects the early phases of Bitcoin and Ethereum ETF adoption, characterized by short-term volatility followed by broader adoption.
Although the XRP price has stabilized around the USD 2.12-2.17 zone after its initial boost, analysts say that the inflow of funds into ETF funds is associated with settlement delays at OTC offices. In other words, the real impact on the market price may not be noticed until later.
Can XRP really compete with Ethereum’s dominance?
Despite XRP’s explosive year, marked by record utility, growing XRPL adoption, and Ripple’s $500 million strategic investment, the asset still needs to grow rapidly if it hopes to overtake Ethereum.
Ethereum remains firmly in second place with a market capitalization of $373 billion, backed by a huge ecosystem of decentralized applications, shrewd contracts and tokenized assets. XRPnow worth about $129 billion, it runs on a network optimized for payments rather than programmable applications.
Analysts note that while XRP’s institutional applications are deepening, particularly in cross-border settlements, tokenization and banking infrastructure, the lack of a native shrewd contract layer limits its ability to reflect demand driven by Ethereum developers.
For now, experts say Ethereum is unlikely to be overtaken in the brief to medium term. However, with increasing utility, ETF-driven accumulation, and growing adoption in Japan, the US, and banks around the world, XRP’s market capitalization could continue to grow significantly.
Price Outlook: Volatility Now, Bigger Moves Later
From a technical perspective, XRP is trading in a critical support zone near $2.12, repeatedly testing the Fibonacci level of 0.382. Selling pressure remains present, with capital outflows and lower highs on the chart. However, since October, open interest has increased from $1 billion to over $6 billion, signaling forceful investor commitment.
Related Reading: Analyst Says You’re Looking at XRP Wrong – Here’s What It Actually Does
Analysts’ long-term forecasts remain bullish, with some predicting a possible rally toward $6-$25 if ETF inflows intensify and liquidity tightens. As November and December usher in numerous ETF listings, XRP’s next major move will likely be shaped by how quickly institutional allocations scale.
Cover photo from ChatGPT, XRPUSD chart from Tradingview
