XRP has recently achieved a significant milestone, momentarily surpassing Ethereum in valuation. However, this accomplishment is specific to their fully diluted market capitalizations (FDV), which assess an asset’s value based on its total supply rather than just its circulating supply. XRP’s Meteoric Rise Against Ethereum XRP’s performance since November 2024 has been nothing short of remarkable. Following an explosive rally late last year, the asset has strengthened its position against Ethereum, registering an astonishing 257% gain in value compared to ETH. This surge bolstered expectations that XRP might one day dethrone Ethereum in overall market capitalization. Earlier, XRP had already overtaken Tether (USDT) to become the third-largest cryptocurrency by market cap. However, while the asset had gained substantial ground, it still needed additional momentum to eclipse Ethereum’s valuation entirely. That said, the latest market pullback has shaken up rankings again, temporarily pushing XRP back to fourth place. Fully Diluted Valuation: A Different Perspective Despite its recent decline, XRP has managed to outpace Ethereum in one key metric: fully diluted valuation. Prominent crypto analyst Miles Deutscher recently highlighted this development, underscoring that XRP’s total market worth—if all tokens were in circulation—has now exceeded that of Ethereum. $XRP just flipped $ETH for Fully Diluted Valuation. pic.twitter.com/L2ZEi7rxfE — Miles Deutscher (@milesdeutscher) March 14, 2025 For those unfamiliar with FDV, this metric accounts for an asset’s market capitalization by factoring in its entire supply, rather than just the amount currently circulating. This stands in contrast to traditional market cap calculations, which focus solely on the value of tokens actively in the market. According to data from CoinMarketCap, Ethereum currently holds an FDV of approximately $228.9 billion, based on its total supply of 120.61 million ETH and a trading price of $1,899.66 per token. Meanwhile, XRP’s FDV has climbed to $231.18 billion, given its total supply of 99.98 billion tokens and a market price of $2.31 per unit. This places XRP’s fully diluted market cap roughly $2.28 billion ahead of Ethereum’s. We are on twitter, follow us to connect with us :- @TimesTabloid1 — TimesTabloid (@TimesTabloid1) July 15, 2023 Circulating vs. Total Supply While this may seem like a groundbreaking achievement for XRP, it comes with an important caveat. The majority of Ethereum’s supply is already in circulation, whereas a significant portion of XRP tokens remains locked in escrow accounts. If all XRP tokens were released into the market today, the asset’s market cap would indeed exceed Ethereum’s. However, until those tokens are fully unlocked, this valuation remains theoretical. Notably, XRP has occasionally surpassed Ethereum in FDV in recent weeks, fueled by the gradual release of escrowed tokens and its continued price appreciation against ETH. Nonetheless, Ethereum itself is not immune to inflationary pressures. The network’s recent Dencun upgrade has resulted in reduced transaction fees, subsequently affecting the burn rate of ETH and making its supply slightly inflationary. What Needs to Happen for XRP to Overtake Ethereum? While this latest development highlights XRP’s strong position, it does not yet translate into an outright victory in actual market capitalization. For XRP to surpass Ethereum in circulating market cap, its price would need to climb approximately 69% to reach $3.90, given Ethereum’s current market valuation of $229.12 billion. Although the fully diluted valuation metric paints an optimistic picture for XRP, true market dominance will only be achieved when the circulating supply—and investor demand—pushes its real market cap beyond Ethereum’s. Until then, XRP remains in a promising but competitive race with ETH for the number two spot in the cryptocurrency rankings. Disclaimer : This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses. Follow us on Twitter , Facebook , Telegram , and Google News The post XRP Surpasses Ethereum Valuation. But There Is A Catch appeared first on Times Tabloid .
